OKAMURA : Financial Results for First Quarter of Fiscal Year Ending March 31, 2018 (Consolidated) (PDF 121KB)

Financial Results for First Quarter of Fiscal Year Ending March 31, 2018 [Japanese GAAP] (Consolidated)

August 4, 2017

Okamura Corporation Listing: Tokyo Stock Exchange

Code Number: 7994 URL: http://www.okamura.co.jp/

Representative: Masayuki Nakamura, President and Representative Director

Contact: Kiyoshi Sato, Senior Managing Director and Senior General Manager, Administration Division TEL: [phone] Scheduled date for filing of quarterly report: August 10, 2017

Scheduled date for commencement of dividend payments: - Preparation of supplementary materials to explain quarterly financial results: None Scheduling of meeting to explain quarterly financial results: None

(Amounts less than 1 million yen have been rounded down.)

1. Consolidated Operating Results for First Quarter (April 1, 2017 to June 30, 2017) of FY Ending March 2018 (April 1, 2017 to March 31, 2018)

2. Operating Results (cumulative) (% Figures indicate year-over-year increase/decrease.)

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent
   First quarter of FY ending March 2018	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   	54,885	(1.6)	2,058	(27.6)	2,606	(19.9)	1,793	(23.2)
   First quarter of FY ended March 2017	55,751	0.6	2,841	18.2	3,253	11.8	2,334	26.9

   Note: Comprehensive income ¥3,485 million (661.0%) for the first quarter of FY ending March 2018

   ¥457 million (-85.5%) for the first quarter of FY ended March 2017

   Profit per share	Diluted profit per share
   First quarter of FY ending March 2018 First quarter of FY ended March 2017	yen 16.28 21.19	yen - -

3. Financial Position

4. Total assets	Net assets	Equity ratio
   First quarter of FY ending March 2018	Millions of yen	Millions of yen	%
   	215,292	116,225	53.8
   FY ended March 2017	218,741	114,249	52.0

   Reference: Total equity ¥115,856 million for the first quarter of FY ending March 2018

   ¥113,689 million for FY ended March 2017

5. Dividend

   Annual dividend
   End of first quarter	End of second quarter	End of third quarter	Year-end	Total
   FY ended March 2017 FY ending March 2018	yen - -	yen 12.00	yen -	yen 12.00	yen 24.00
   FY ending March 2018 (forecast)	12.00	-	12.00	24.00

   Note: Revision of the most recently released dividend forecasts: None

6. Forecast of Consolidated Performance for FY Ending March 2018 (April 1, 2017 to March 31, 2018)

7. (% Figures indicate year-over-year increase/decrease.)

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent		Profit per share
   2Q (cumulative)	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	yen
   	113,000	1.2	4,500	(11.9)	4,800	(12.7)	3,200	(16.2)	29.05
   Full year	243,000	2.6	12,500	5.8	13,200	3.4	8,900	7.3	80.79

   Note: Revision of the most recently released performance forecasts: None

   * Notes

8. Changes in the number of material subsidiaries during the quarter under review (This indicates whether there have been changes in the number of specified subsidiaries involving changes in the scope of consolidation): None

   New - company(ies) ( -)

   Excluded - company(ies) ( -)

9. Adoption of a special accounting method applicable to the preparation of consolidated quarterly financial statements: None

10. Changes in accounting policy or accounting estimates, or restatement

     Changes in accounting policy in accordance with revisions to accounting standards: None

     Changes other than those in  above in accounting policy: None

     Changes in accounting estimates: None

     Restatement: None

    1Q of FY ending March 2018	112,391,530	FY ended March 2017	112,391,530
    1Q of FY ending March 2018	2,234,633	FY ended March 2017	2,233,725
    1Q of FY ending March 2018	110,157,344	1Q of FY ended March 2017	110,163,862

11. Number of shares of stock (common stock)

     Number of shares issued (including treasury stock) at the end of the term

     Number of shares of treasury stock at the end of the term

     Average number of shares during the term (cumulative quarters)

    • The quarterly Financial Results summary is not subject to quarterly review procedures.

    • Explanation of Appropriate Use of Performance Forecasts and Other Issues Requiring Particular Mention

    • The performance forecasts and other forward-looking statements contained herein are based on the information available to the Company at the time, and contain certain assumptions that the Company considers to be reasonable. They are subject to diverse factors that may cause actual results of operations and other items to differ significantly from the statements and forecasts. For a description of the assumptions underlying the performance forecasts and the points to note when using the performance forecasts in this document, etc., please refer to (3) Explanation of the performance forecast in 1. Qualitative Information Concerning Consolidated Quarterly Financial Results on page 3 of the Appendix.

    Okamura Corporation (7994) Financial Results for First Quarter of Fiscal Year Ending March 31, 2018 (Consolidated)

    • Table of Contents for Appendix

12. Qualitative Information Concerning Consolidated Quarterly Financial Results 2

13. Explanation of the progress in (consolidated) operating results 2

14. Explanation of the changes in (consolidated) financial position 3

15. Explanation of the performance forecast 3

16. Consolidated Quarterly Financial Statements and Important Notes 4

17. Consolidated Quarterly Balance Sheet. 4

18. Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive

    Income 6

19. Consolidated Quarterly Statements of Cash Flows 8

20. Notes regarding Consolidated Quarterly Financial Statements 9

21. Note regarding the assumption of going concern 9

    Note regarding occurrence of significant change in amount of shareholders' equity 9

    Segment information 9

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    Okamura Corporation (7994) Financial Results for First Quarter of Fiscal Year Ending March 31, 2018 (Consolidated)

22. Qualitative Information Concerning Consolidated Quarterly Financial Results

23. Explanation of the progress in (consolidated) operating results

24. During the first quarter of the consolidated fiscal year under review, corporate earnings and the employment situation continued to improve, keeping the Japanese economy on a moderate recovery trend despite a persisting mood of uncertainty about US government policies and future performance of China and other emerging market economies, a segment seen with concerns.

    Under these circumstances, the Okamura Group strove to develop new market potential, increase our market share in each of our business segments, and cultivate new customer bases by creating distinctive products and offering total solutions. The Group also endeavored to improve productivity and accelerate the cost reduction.

    Performance results by segment are discussed below.

    Segment name	Net sales (Millions of yen)			Segment income (loss) (Millions of yen)
    	First quarter of FY ended March 2017	First quarter of FY ending March 2018	Increase/ decrease	First quarter of FY ended March 2017	First quarter of FY ending March 2018	Increase/ decrease
    Office Furniture	28,355	27,756	(599)	1,789	1,158	(630)
    Store Displays	23,476	23,747	271	1,025	920	(104)
    Others	3,919	3,381	(538)	27	(20)	(47)
    Total	55,751	54,885	(866)	2,841	2,058	(783)

    Note: The total of segment income (loss) corresponds to the operating income on Consolidated Quarterly Statements of Income.

    Office Furniture

    In the Office Furniture segment, although demand for office furniture remained strong, large office relocation projects declined in number since the supply of large-scale office buildings was in a brief off-demand period. Under these circumstances, the Company proactively made proposals on how to create a new office environment in response to work style innovation in offices and the growing interest in health. The Company also engaged in aggressive sales activities targeting companies with strong performance and the furniture market for office-related facilities including school and library facilities as well as municipal offices. Despite these efforts however, both net sales and income decreased year-over-year or compared to the previous year partly due to increased prices for materials.

    As a result, net sales in this segment amounted to ¥27,756 million (a year-over-year decrease of 2.1%), and the segment income amounted to ¥1,158 million (a year-over-year decrease of 35.2%).

    Store Displays

    In the Store Displays segment, the Company stepped up efforts to deliver total solutions mainly to strongly performing retailers, such as food supermarkets and drugstores concerning display fixtures, store carts, security products, and the like by leveraging the organization's comprehensive capabilities. In addition, the Company focused on increasing its market share in refrigerated showcases and on cost reductions. These efforts however, failed to offset the effects from higher prices of materials with the result that income declined year-over-year although net sales grew year-over-year.

    As a result, net sales in this segment amounted to ¥23,747 million (a year-over-year increase of 1.2%), and the segment income amounted to ¥920 million (a year-over-year decrease of 10.2%).

    Others (including Material Handling Systems)

    In the Materials Handling Systems segment, the Company focused its efforts on promising areas such as food, healthcare, and Internet shopping, and on increasing sales of automated warehousing equipment. The organization also strengthened collaboration with other segments and engaged in aggressive sales activities by maximum utilization of its solution-proposal capabilities and its products, which stand out from among others due to their superiority. Despite these efforts however, both net sales and income decreased year-over-year.

    As a result, net sales in this segment amounted to ¥3,381 million (a year-over-year decrease of 13.7%), and the segment loss amounted to ¥20 million (versus a segment income of ¥27 million in the same period of the previous fiscal year).

    As a result of the above, during the first quarter of the consolidated fiscal year under review, the Company posted net sales of

    ¥54,885 million (a year-over-year decrease of 1.6%), operating income of ¥2,058 million (a year-over-year decrease of 27.6%), ordinary income of ¥2,606 million (a year-over-year decrease of 19.9%), and profit attributable to owners of parent of

    ¥1,793 million (a year-over-year decrease of 23.2%).

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