Intage : Explanation Materials for Consolidated Financial Results for the Six Months Ended September 30, 2017

Financial results presentation for institutional investors and analysts‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌

Explanation Materials for Consolidated Financial Results for the Six Months Ended September 30, 2017 November 16, 2017

Security code: 4326 Contents

• Results for the Six Months Ended September 30, 2017

• Status Report on the 12th Medium-Term Management

Plan Summary of Consolidated Statements of Income

As initially projected, net sales increased but operating income declined. Ordinary income and net income attributable to owners of parent grew from the same period of the previous year and were higher than forecasts owing to an increase in non-operating income (mainly dividend income).

*On November 10, 2017, the Notice Regarding Difference between Interim Forecasts for the Fiscal Year Ending March 31, 2018 and Actual Results and Revision of Full-year Forecasts was released.

(¥ million)

Six months ended Sept. 30, 2016		Six months ended Sept. 30, 2017	Y/Y	Forecasts	Compared to forecasts
Net sales	21,448	22,941	+7.0%	23,000	-0.3%
Operating income	1,373	1,270	-7.5%	1,100	+15.5%
Ordinary income	1,370	1,469	+7.2%	1,100	+33.5%
Net income attributable to owners of parent	914	1,008	+10.3%	700	+44.1%
EPS (Yen)	22.90	25.25			
ROA (%)	2.5	2.6			

(Note) A 2-for-1 stock split of the Company's outstanding shares of common stock implemented on October 1, 2017 is factored into EPS figures.

Summary of Consolidated Balance Sheets and Consolidated Statements of Cash Flows (¥million)

Summary of Consolidated Balance Sheets	Year ended Mar. 31, 2017	Six months ended Sept. 30, 2017	Increase/ Decrease	Remarks
Current assets	25,694	24,309	-1,384	Due to decreased notes and accounts receivable-trade
Non-current assets	13,373	13,421	+48	Mainly due to increased investment securities and decreased property, plant and equipment
Total assets	39,067	37,731	-1,336
Current liabilities	11,999	10,543	-1,456	Mainly due to decreased accounts payable-trade and income taxes payable
Non-current liabilities	3,295	3,302	+6
Total liabilities	15,295	13,845	-1,450
Total shareholders' equity	22,462	22,588	+126
Total net assets	23,771	23,886	+115

Summary of Consolidated Statements of Cash Flows	Six months ended Sept. 30, 2016	Six months ended Sept. 30, 2017	Increase/ Decrease	Remarks
Cash flows from operating activities	2,073	1,781	-291	Due to increased payments of notes and accounts payable- trade
Cash flows from investing activities	-1,038	-721	+316	Due to increased payments for purchase of investment securities and decreased payments for purchase of property, plant and equipment
Cash flows from financing activities	-756	-980	-223	Due to purchase of investments in subsidiaries that do not result in change in scope of consolidation
Effect of exchange rate changes on cash and cash equivalents	-143	1	+145
Net increase/decrease in cash and cash equivalents	134	81	-53
Cash and cash equivalents at beginning of period	9,812	10,418	+605
Cash and cash equivalents at end of period	9,947	10,499	+552