Hearts United : Summary of Business Results for the First Quarter Ended June 30, 2017

Summary of Business Results for the First Quarter Ended June 30, 2017 [Japan GAAP] (Consolidated)

Company name: Hearts United Group Co., Ltd. Listed on the TSE

August 10, 2017

Stock code: 3676 URL: http://www.heartsunitedgroup.co.jp/ Representative: Genichi Tamatsuka, President and CEO

Contact: Toshiya Tsukushi, Executive Officer and CFO TEL: [phone] Scheduled date of submission of financial reports: August 14, 2017

Scheduled commencement of dividend payment: - Preparation of supplementary material for quarterly financial results: Yes Holding of quarterly financial results meeting: None

(Figures are rounded down to the nearest million yen.)

1. Consolidated results for the first quarter ended June 30, 2017 (April 1, 2017 - June 30, 2017)

   (Reference) Comprehensive income:	Three months ended June 30, 2017:	336 million yen	(14.8%)
   Three months ended June 30, 2016:	293 million yen	(178.4%)

2. Consolidated business results (Percentages are changes from the same period of the previous year.)

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent
   Three Months Ended	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)
   June 30, 2017	4,039	6.0	539	12.2	532	1.1	360	20.7
   June 30, 2016	3,810	7.2	481	96.5	526	116.8	298	187.1

   Net income per share	Diluted net income per share
   Three Months Ended	(Yen)	(Yen)
   June 30, 2017	16.60	15.99
   June 30, 2016	13.35	13.23

   (Note) The Company conducted a 2-for-1 common stock split on October 1, 2016. Accordingly, net income per share and diluted net income per share are calculated based on the assumption that the stock split was conducted on April 1, 2016.

3. Consolidated financial position

   Total assets	Net assets	Shareholders' equity ratio
   As of June 30, 2017	(Millions of yen)	(Millions of yen)	(%)
   	7,193	2,692	34.9
   As of March 31, 2017	7,651	2,858	34.4

   (Reference) Shareholders' equity: 2,508 million yen (As of June 30, 2017) 2,632 million yen (As of March 31, 2017)

4. Dividends

   Annual dividends
   Q1	Q2	Q3	Year End	Total
   Fiscal year ended March 31, 2017 Fiscal year ending March 31, 2018	(Yen) ― ―	(Yen) 11.00	(Yen) ―	(Yen) 6.00	(Yen)
   Fiscal year ending March 31, 2018 (Forecasts)	5.50	―	6.00	11.50

   (Note) Changes from the latest released dividend forecasts: None

   (Note) The Company conducted a 2-for-1 common stock split on October 1, 2016. Accordingly, dividends per share for 2Q of the fiscal year ended March 31, 2017 are calculated without taking into consideration the effect of the stock split.

5. Consolidated earnings forecasts for the fiscal year ending March 2018 (April 1, 2017 - March 31, 2018)

6. (Percentages are changes from the same period of the previous year.)

   Net sales	Operating income	Ordinary income	Profit attributable to owners of parent	Net income per share
   Full fiscal year	(Millions of yen) (%) 17,622 14.1	(Millions of yen) (%) 2,200 15.4	(Millions of yen) (%) 2,225 11.4	(Millions of yen) (%) 1,382 73.8	(Yen) 63.64

   (Note) Changes from the latest released earnings forecasts: None

   • Notes

   • Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope of consolidation): None

   • Application of specified accounting treatment used in preparation of quarterly consolidated financial statements: None

   • Changes in accounting policies and accounting estimates and restatement

   • Changes in accounting policies associated with revision of accounting standards :None

   • Changes in accounting policies other than (a) above :None

   • Changes in accounting estimates :None

   • Restatement :None

     As of June 30, 2017	23,890,800 shares	As of March 31, 2017	23,890,800 shares
     As of June 30, 2017	2,179,904 shares	As of March 31, 2017	1,943,204 shares
     Three months ended June 30, 2017	21,730,925 shares	Three months ended June 30, 2016	22,375,396 shares

   • Shares outstanding (common stock)

   • Number of issued shares (including treasury stock)

   • Number of treasury stock

   • Average number of shares during the period

   • (Note) The Company conducted a 2-for-1 common stock split on October 1, 2016. Accordingly, the number of shares above is calculated based on the assumption that the stock split was conducted on April 1, 2016.

   • Implementation status of quarterly review procedures

     ・This quarterly financial report is not subject to the quarterly review procedures under the Financial Instruments and Exchange Act,

     and accordingly, such review procedures have not been completed when this report is disclosed.

   • Explanation for proper use of the earnings forecasts and other special notes

   ・Any forward-looking statements included in this report such as earnings forecasts are based on the information available to the

   Company at this time and certain assumptions considered reasonable; and accordingly, actual results may differ significantly from the forecasts due to various factors.

   ・Supplementary material for quarterly financial results will be posted on TDnet and the Company's website shortly after Quarterly

   Financial Report is disclosed.