ADVANEX : Revisions to the FY 2017 Performance Forecast

August 12, 2016

Company Name: Advanex Inc.

Representative: Tsuneo Shibano, President & COO

(Code Number: 5998)

Inquiries: Toshiya Ohno, Executive Director & CFO

(Telephone: [phone])

Revisions to the FY 2017 Performance Forecast and Dividend forecast

Advanex Inc. has made the following revisions to its consolidated performance forecasts disclosed on May 12, 2016.

1. Regarding to Revision to the FY2017 performance forecast

1. Revisions of Consolidated Performance Forecasts for the first half of FY 2017:

   (April 1 to September 30, 2016) (Unit: Millions of yen)

   Net Sales	Operating Income	Ordinary Income	Net Income	Net income per share(yen)
   Previous Forecast (A)	9,400	330	320	180	44.07
   Amended Forecast (B)	8,700	30	0	△80	△19.59
   Amount Changed (B - A)	△700	△300	△320	△260	-
   % of change	△7.4%	△90.9%	-	-	-
   (Reference) 1st Half of FY 2016 results (April 1 to September 30, 2015)	9,924	366	353	237	57.88

2. Revisions of Consolidated Full Year Performance Forecasts for FY 2017:

(April 1, 2016 to March 31, 2017) (Unit: Millions of yen)

Net Sales	Operating Income	Ordinary Income	Net Income	Net income per share(yen)
Previous Forecast (A)	19,200	800	800	600	146.55
Amended Forecast (B)	17,700	450	400	220	53.87
Amount Changed (B - A)	△1,500	△350	△400	△380	-
% of change	△7.8%	△43.8%	△50%	△63.3 %	-
(Reference) FY 2016 results (April 1, 2015 to March 31, 2016)	19,073	668	671	587	143.44

(3). Reasons for the revisions

As for the result of 1st quarter of FY2017, although sales to automotive went strong, sales and earnings deteriorated due to worsened sales to OA equipment, medical equipment and the impact of the strong yen, so net sales, operating income, ordinary income and net income shorted the speculation. Therefore, the forecast for the first half of FY2017 and full FY2017 are revised in line with the result of the first quarter of

FY2017 and current situation.

These forecasts assume an exchange rate of ¥100 to the US dollar for the FY2017.

1. Regarding to Revision of dividend forecast

2. Revision of dividend forecast

   Dividend per share（JP￥）
   Record date	1st half	Full year	Total
   Previous forecast （Disclosed on May 12, 2016）	40.00	40.00
   Amended forecast	30.00	30.00
   FY2016 results	35.00	35.00

3. Reasons for the revisions

Our dividend policy is to keep 30% of payout ratio. Although impact of strong yen and deterioration of current business appeared, the payout ratio will be raised up to 56% due to the expectation for automotive business in the future.