OKAMURA : Financial Results for Third Quarter of Fiscal Year Ending March 31, 2017 (Consolidated) (PDF 121KB)

February 6, 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: +81-(0)45-319-3445 Scheduled date for filing of quarterly report: February 13, 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 Third Quarter (April 1, 2016 to December 31, 2016) of FY Ending March 2017 (April 1, 2016 to March 31, 2017)

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

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent
   Third quarter of FY ending March 2017	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   	168,520	(0.9)	6,604	(2.7)	7,233	(3.8)	4,850	4.3
   Third quarter of FY ended March 2016	170,002	10.3	6,787	60.0	7,517	37.3	4,652	30.2

   Note: Comprehensive income ¥4,790 million (-18.4%) for the third quarter f of FY ending March 2017

   ¥5,870 million (-1.0%) for the third quarter f of FY ended March 2016

   Profit per share	Diluted profit per share
   Third quarter of FY ending March 2017 Third quarter of FY ended March 2016	yen 44.03 42.23	yen - -

3. Financial Position

4. Total assets	Net assets	Equity ratio
   Third quarter of FY ending March 2017	Millions of yen	Millions of yen	%
   	213,741	110,408	51.4
   FY ended March 2016	217,485	108,491	49.7

   Reference: Total equity ¥109,885 million for the third quarter of FY ending March 2017

   ¥107,996 million for FY ended March 2016

5. Dividend

   Annual dividend
   End of first quarter	End of second quarter	End of third quarter	Year-end	Total
   FY ended March 2016	yen	yen	yen	yen	yen
   	-	10.00	-	14.00	24.00
   FY ending March 2017	-	12.00	-
   FY ending March 2017 (forecast)	12.00	24.00

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

6. Forecast of Consolidated Performance for FY Ending March 2017 (April 1, 2016 to March 31, 2017)

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

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent		Profit per share
   Full year	Millions of yen 250,000	% 3.8	Millions of yen 14,000	% 8.0	Millions of yen 14,700	% 8.2	Millions of yen 9,800	% 8.1	yen 88.96

   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

    3Q of FY ending March 2017	112,391,530	FY ended March 2016	112,391,530
    3Q of FY ending March 2017	2,231,529	FY ended March 2016	2,227,159
    3Q of FY ending March 2017	110,162,164	3Q of FY ended March 2016	110,160,779

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)

    • Indication of Implementation Status of Quarterly Review Procedures

      • This quarterly Financial Results summary is not subject to the quarterly review procedures as provided for in the Financial Instruments and Exchange Act. The procedures for reviewing the Company's consolidated quarterly financial statements in accordance with the Financial Instruments and Exchange Act are yet to be completed at the time of publication of this quarterly Financial Results summary.

    • 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 Third Quarter of Fiscal Year Ending March 31, 2017 (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. Summary Information (Notes) 4

17. Changes in the number of material subsidiaries during the quarter under review 4

18. Adoption of a special accounting method applicable to the preparation of consolidated quarterly financial statements 4

19. Changes in accounting policy or accounting estimates, or restatement 4

20. Additional information 4

21. Consolidated Quarterly Financial Statements 5

22. Consolidated Quarterly Balance Sheet. 5

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

    Income 7

24. Consolidated Quarterly Statements of Cash Flows 9

25. Notes regarding Consolidated Quarterly Financial Statements 10

26. Note regarding the assumption of going concern 10

    Note regarding occurrence of significant change in amount of shareholders' equity 10

    Segment information 10

    Material subsequent events 10

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    Okamura Corporation (7994) Financial Results for Third Quarter of Fiscal Year Ending March 31, 2017 (Consolidated)

27. Qualitative Information Concerning Consolidated Quarterly Financial Results

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

29. During the third quarter of the consolidated fiscal year under review, corporate earnings proved to be solid, and employment situation showed improvement. The Japanese economy, however, remained unable to shake off a mood of uncertainty such as the instability of exchange and stock markets due to the U.K.'s decision to leave the European Union, the risk of an economic downturn in China and other emerging countries, and the inauguration of a new president in the U.S.

    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 (Millions of yen)
    	Third quarter of FY ended March 2016	Third quarter of FY	Increase/ decrease	Third quarter of FY ended March 2016	Third quarter of FY	Increase/ decrease
    		ending March 2017			ending March 2017
    Office Furniture	83,110	84,708	1,597	3,974	3,995	21
    Store Displays	74,694	72,001	(2,692)	2,664	2,530	(134)
    Others	12,197	11,810	(387)	147	78	(69)
    Total	170,002	168,520	(1,482)	6,787	6,604	(182)

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

    Office Furniture

    In the Office Furniture segment, demand for office furniture remained strong as a result of a stable supply of large-scale office buildings, mainly in the center of Tokyo. 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 endeavored to engage in aggressive sales activities for companies with a strong performance and the furniture market for office-related facilities, including school and library facilities, as well as municipal offices. The results of the above efforts increased both net sales and income year-over-year.

    As a result, net sales in this segment amounted to ¥84,708 million (a year-over-year increase of 1.9%), and the segment income amounted to ¥3,995 million (a year-over-year increase of 0.5%).

    Store Displays

    In the Store Displays segment, by taking advantage of the Group's total strength in display fixtures, store carts, security products, and the like, the Company enhanced its capabilities to make proposals for total solutions for the retail industry, mainly among strongly performing retailers, such as a food supermarket and drugstore. In addition, the Company focused on increasing its market share in refrigerated showcases and on cost reductions. However, both net sales and income decreased year-over-year due to: 1) a decrease in demand for new store openings resulting from competition among the business sectors within the retail industry as well as a decrease in demand for and postponement of new store openings resulting from the retail industry reorganization and 2) the impact of decreased demand for and postponement of renovating existing stores in the retail industry.

    As a result, net sales in this segment amounted to ¥72,001 million (a year-over-year decrease of 3.6%), and the segment income amounted to ¥2,530 million (a year-over-year decrease of 5.0%).

    Others (including Material Handling Systems)

    Materials Handling Systems focused its efforts on increasing sales of automated warehousing equipment to customers engaging in promising areas such as food, healthcare, and Internet shopping. It also strengthened collaboration with other segments and endeavored to engage in aggressive sales activities with maximum utilization of its solution-proposal capabilities and its products, which are distinguished by 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 ¥11,810 million (a year-over-year decrease of 3.2%), and the segment income amounted to ¥78 million (a year-over-year decrease of 47.1%).

    As a result of the above, during the third quarter of the current fiscal year, the Company posted net sales of ¥168,520 million (a year-over-year decrease of 0.9%), operating income of ¥6,604 million (a year-over-year decrease of 2.7%), ordinary income of ¥7,233 million (a year-over-year decrease of 3.8%), and profit attributable to owners of parent of ¥4,850 million (a year-over-year increase of 4.3%).

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