TOSHIBA PLANT & SERVICES : Summary of Consolidated Financial Results for the Year Ended March 31, 2017

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Year Ended March 31, 2017 (Based on Japanese GAAP)

Company name: Toshiba Plant Systems & Services Corporation Stock exchange listing: Tokyo

Stock code: 1983 URL http://www.toshiba-tpsc.co.jp

President and Chief Executive Officer,

May 15, 2017

Representative:

Inquiries:

Representative Director

Vice President and Director, Head of Accounting Division

Ryo Matsukawa

Yoshikatsu Tanaka TEL [phone]

Scheduled date of ordinary general meeting of shareholders: June 22, 2017 Scheduled date to file Securities Report: June 22, 2017

Scheduled date to commence dividend payments: June 2, 2017 Preparation of supplementary material on financial results: Yes

Holding of financial results meeting: Yes (for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)

2. Consolidated operating results Percentages indicate year-on-year changes

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent
   Year ended March 31, 2017	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   	226,867	3.4	17,583	(5.7)	19,093	2.0	12,796	13.8
   Year ended March 31, 2016	219,353	0.3	18,648	10.1	18,720	5.8	11,242	11.9

   Earnings per share	Diluted earnings per share	Profit attributable to owners of parent/equity	Ordinary income /total assets	Operating income /net sales
   Year ended March 31, 2017	Yen	Yen	%	%	%
   	131.36	-	10.1	7.9	7.8
   Year ended March 31, 2016	115.40	-	9.5	8.0	8.5

3. Consolidated financial position

   Total assets	Net assets	Equity ratio	Net assets per share
   As of March 31, 2017	Millions of yen	Millions of yen	%	Yen
   	244,407	133,288	54.4	1,365.06
   As of March 31, 2016	238,254	121,281	50.8	1,241.90

4. Consolidated cash flows

   Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Year ended March 31, 2017	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   	700	(1,518)	(3,082)	87,996
   Year ended March 31, 2016	25,210	16,332	(2,444)	91,633

5. Cash dividends

   Annual dividends per share					Total cash dividends (Total)	Dividend payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
   Year ended March 31, 2016	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   	-	25.00	-	12.50	37.50	3,653	32.5	3.1
   Year ended March 31, 2017	-	19.00	-	19.00	38.00	3,701	28.9	2.9
   Year ending March 31, 2018 (Forecast)	-	20.00	-	20.00	40.00	28.9

6. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)

   Percentages indicate year-on-year changes

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent		Earnings per share
   Six months ending September 30, 2017	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   	100,000	4.1	8,000	(4.3)	8,000	(9.1)	5,500	(7.4)	56.46
   Full year	235,000	3.6	19,800	12.6	20,000	4.7	13,500	5.5	138.58

7. Notes

8. (1) Changes in significant subsidiaries during the year ended March 31, 2017 (changes in specified subsidiaries resulting in the change in scope of consolidation):

   No

9. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

   Changes in accounting policies due to revisions to accounting standards and other regulations:	No
   Changes in accounting policies due to other reasons:	No
   Changes in accounting estimates:	No
   Restatement of prior period financial statements:	No

10. Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2017

97,656,888

shares

As of March 31, 2016

97,656,888

shares

Number of treasury shares at the end of the period

As of March 31, 2017

243,675

shares

As of March 31, 2016

243,256

shares

Average number of shares during the period

Year ended March 31, 2017

97,413,425

shares

Year ended March 31, 2016

97,414,180

shares

Consolidated financial statements Consolidated balance sheet

(Millions of yen)
As of March 31, 2016	As of March 31, 2017
Assets
Current assets
Cash and deposits	6,430	88,257
Group finance deposits	85,534	-
Trade notes and accounts receivable	92,565	103,411
Electronically recorded monetary claims - operating	508	435
Inventories	25,288	24,265
Deferred tax assets	3,953	3,634
Other current assets	5,172	6,131
Less: allowance for doubtful accounts	(312)	(1,252)
Total current assets	219,141	224,883
Long-term assets
Property, plant and equipment, at cost
Buildings and structures	8,882	9,737
Accumulated depreciation	(7,331)	(7,460)
Buildings and structures, net	1,550	2,276
Machinery and equipment	2,755	2,695
Accumulated depreciation	(2,092)	(1,963)
Machinery and equipment, net	662	732
Tools, furniture and fixtures	4,413	4,410
Accumulated depreciation	(3,406)	(3,489)
Tools, furniture and fixtures, net	1,007	920
Land	3,152	3,139
Leased assets	75	57
Accumulated depreciation	(36)	(29)
Leased assets, net	38	28
Construction in progress	279	-
Property, plant and equipment, net	6,692	7,097
Intangible assets	252	245
Investments and other assets
Investment securities	197	308
Deferred tax assets	11,198	10,474
Other	895	1,517
Less: allowance for doubtful accounts	(123)	(119)
Total investments and other assets	12,168	12,180
Total long-term assets	19,112	19,523
Total assets	238,254	244,407

(Millions of yen)
As of March 31, 2016	As of March 31, 2017
Liabilities
Current liabilities
Trade notes and accounts payable	47,635	47,308
Accrued income taxes	5,888	4,672
Advances received on uncompleted construction contracts	13,349	13,181
Allowance for bonuses to directors and statutory auditors	93	122
Completed work compensation reserve	1,048	319
Provision for loss on construction contracts	204	3
Other current liabilities	13,234	14,088
Total current liabilities	81,455	79,695
Long-term liabilities
Accrued directors' retirement benefits	27	36
Liability for retirement benefit	35,197	30,946
Asset retirement obligations	75	374
Other long-term liabilities	216	65
Total long-term liabilities	35,517	31,423
Total liabilities	116,972	111,118
Net assets
Shareholders' equity
Common stock	11,876	11,876
Capital surplus	20,910	20,910
Retained earnings	94,726	104,455
Treasury stock, at cost	(164)	(165)
Total shareholders' equity	127,348	137,076
Accumulated other comprehensive income
Unrealized gains or losses on securities	-	(3)
Deferred gains or losses on hedges	(290)	(267)
Currency translation adjustments	(11)	99
Retirement benefits liability adjustments	(6,068)	(3,929)
Total accumulated other comprehensive income	(6,369)	(4,101)
Non-controlling interests	303	313
Total net assets	121,281	133,288
Total liabilities and net assets	238,254	244,407

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

(Millions of yen)
Fiscal year ended March 31, 2016	Fiscal year ended March 31, 2017
Net sales	219,353	226,867
Cost of sales	188,377	195,269
Gross profit	30,976	31,597
Selling, general and administrative expenses	12,328	14,013
Operating income	18,648	17,583
Other income
Interest income	196	1,061
Dividends income	46	48
Equity in income of affiliates	39	46
Other	167	409
Total other income	450	1,565
Other expenses
Loss on disposal of long-term assets	8	13
Foreign exchange losses	312	-
Other	57	41
Total other expenses	378	55
Ordinary income	18,720	19,093
Extraordinary income
Gain on contribution of securities to retirement benefit trust	372	-
Total extraordinary income	372	-
Extraordinary losses
Impairment loss	323	-
Loss on revision of retirement benefit plan	211	-
Total extraordinary losses	534	-
Profit before income taxes	18,558	19,093
Income taxes - current	6,760	6,210
Income taxes - deferred	549	79
Total income taxes	7,310	6,289
Profit	11,248	12,804
Profit attributable to non-controlling interests	6	7
Profit attributable to owners of parent	11,242	12,796

Consolidated statements of comprehensive income

(Millions of yen)
Fiscal year ended March 31, 2016	Fiscal year ended March 31, 2017
Profit	11,248	12,804
Other comprehensive income
Unrealized gains or losses on securities	(188)	(3)
Deferred gains or losses on hedges	(70)	22
Currency translation adjustments	(791)	116
Retirement benefits liability adjustments	(2,552)	2,138
Other comprehensive income	(3,603)	2,274
Total comprehensive income	7,645	15,078
Comprehensive income attributable to
Owners of parent	7,686	15,065
Non-controlling interests	(41)	12

Consolidated statements of changes in equity

Fiscal year ended March 31, 2016

(Millions of yen)

Shareholders' equity
Common stock	Capital surplus	Retained earnings	Treasury stock, at cost	Total shareholders' equity
Balance at beginning of current period	11,876	20,910	85,919	(163)	118,543
Changes of items during period
Cash dividends	(2,435)	(2,435)
Profit attributable to owners of parent	11,242	11,242
Purchase of treasury stock	(1)	(1)
Net changes of items other than shareholders' equity
Total changes of items during period	-	-	8,806	(1)	8,805
Balance at end of current period	11,876	20,910	94,726	(164)	127,348

Other comprehensive income					Non- controlling interests	Total net assets
Unrealized gains or losses on securities	Deferred gains or losses on hedges	Currency translation adjustments	Retirement benefits liability adjustments	Total other comprehensive income
Balance at beginning of current period	188	(220)	733	(3,516)	(2,814)	330	116,059
Changes of items during period
Cash dividends	(2,435)
Profit attributable to owners of parent	11,242
Purchase of treasury stock	(1)
Net changes of items other than shareholders' equity	(188)	(70)	(744)	(2,552)	(3,555)	(27)	(3,583)
Total changes of items during period	(188)	(70)	(744)	(2,552)	(3,555)	(27)	5,222
Balance at end of current period	-	(290)	(11)	(6,068)	(6,369)	303	121,281

Fiscal year ended March 31, 2017

(Millions of yen)

Shareholders' equity
Capital stock	Capital surplus	Retained earnings	Treasury stock, at cost	Total shareholders' equity
Balance at beginning of current period	11,876	20,910	94,726	(164)	127,348
Changes of items during period
Cash dividends	(3,068)	(3,068)
Profit attributable to owners of parent	12,796	12,796
Purchase of treasury stock	(0)	(0)
Net changes of items other than shareholders' equity
Total changes of items during period	-	-	9,728	(0)	9,727
Balance at end of current period	11,876	20,910	104,455	(165)	137,076

Accumulated other comprehensive income					Non- controlling interests	Total net assets
Unrealized gains or losses on securities	Deferred gains or losses on hedges	Currency translation adjustments	Retirement benefits liability adjustments	Total accumulated other comprehensive income
Balance at beginning of current period	-	(290)	(11)	(6,068)	(6,369)	303	121,281
Changes of items during period
Cash dividends	(3,068)
Profit attributable to owners of parent	12,796
Purchase of treasury stock	(0)
Net changes of items other than shareholders' equity	(3)	22	110	2,138	2,268	10	2,278
Total changes of items during period	(3)	22	110	2,138	2,268	10	12,006
Balance at end of current period	(3)	(267)	99	(3,929)	(4,101)	313	133,288

Consolidated statements of cash flows

(Millions of yen)
Fiscal year ended March 31, 2016	Fiscal year ended March 31, 2017
Cash flows from operating activities
Profit before income taxes	18,558	19,093
Depreciation	555	681
Impairment loss	323	-
Increase in allowance for doubtful accounts	116	936
Increase in accrued director's retirement benefits	4	8
Increase (Decrease) in net defined benefit liability	(39)	(1,160)
Interest and dividends	(243)	(1,110)
Foreign exchange losses (gains)	86	(163)
Gain on securities contribution to employees' retirement trust	(372)	-
Loss on revision of retirement benefit plan	211	-
Loss (gain) on sales of property, plant and equipment	6	(8)
Loss on disposal of property, plant and equipment and intangible assets	20	13
Equity in (income) of affiliates	(39)	(46)
(Increase)decrease in trade notes and accounts receivable	16,951	(10,844)
(Increase)decrease in inventories	(5,644)	1,041
(Increase) in other current assets	(726)	(898)
(Decrease) in trade notes and accounts payable	(2,436)	(439)
Increase (decrease) in advances received on uncompleted construction contracts	2,827	(141)
Increase in allowance for bonuses to directors and statutory auditors	14	29
Increase (decrease) in completed work compensation reserve	548	(729)
Increase (decrease) in provision for loss on construction contracts	204	(201)
Increase in other current liabilities	803	487
Decrease (increase) in consumption taxes receivable/payable	(69)	714
Other	37	(125)
Subtotal	31,697	7,137
Interest and dividend income received	268	1,139
Income taxes paid	(6,755)	(7,576)
Net cash provided by operating activities	25,210	700

(Millions of yen)
Fiscal year ended March 31, 2016	Fiscal year ended March 31, 2017
Cash flows from investing activities
Payments into time deposits	(915)	(545)
Proceeds from withdrawal of time deposits	769	622
Payments for group finance deposits	(79,380)	(194,758)
Proceeds for Group finance deposits	96,755	194,758
Payments of short-term loans receivable	(17)	-
Collection of short-term loans receivable	5	0
Payments of long-term loans receivable	(8)	(4)
Collection of long-term loans receivable	6	3
Payments for acquisition of property, plant and equipment	(891)	(857)
Proceeds from sales of property, plant and equipment	129	31
Payments for acquisition of intangible assets	(27)	(23)
Purchase of investment securities	-	(98)
Payment of long-term guarantee deposits	(63)	(39)
Collection of long-term guarantee deposits	24	28
Other	(52)	(636)
Net cash provided by (used in) investing activities	16,332	(1,518)
Cash flows from financing activities
Purchase of treasury stock	(1)	(0)
Dividends paid	(2,435)	(3,068)
Dividends paid to non-controlling interests	(2)	(2)
Repayments of lease obligations	(20)	(10)
Proceeds from share issuance to non-controlling shareholders	15	-
Net cash provided by (used in) financing activities	(2,444)	(3,082)
Effect of exchange rate change on cash and cash equivalents	(593)	263
Net increase (decrease) in cash and cash equivalents	38,506	(3,637)
Cash and cash equivalents at beginning of period	53,127	91,633
Cash and cash equivalents at end of period	91,633	87,996