AHRESTY : Consolidated Financial Results (Japanese Accounting Standards) for the First Quarter of the Fiscal Year Ending March 31, 2018

Company Name Ahresty Corporation Stock Exchange Listing Tokyo

August 8, 2017

Code Number 5852 URL http://www.ahresty.co.jp Representative President & CEO Arata Takahashi

Contact for inquiries Director, General Manager of Administrative Command Shinichi Takahashi TEL 03-6369-8660 Filing date of quarterly securities report August 9, 2017

Planned date for start of dividend payments - Supplementary documents for quarterly results Yes Quarterly results briefing None

1. Business performance (April 1, 2017 through June 30, 2017)

   (Amounts of less than 1 million yen are rounded off)

2. Consolidated operating results (For the three months ended June 30) (% shows change from previous first quarter)

   Net sales	Operating income	Recurring income	Net income attributable to owners of parent
   Three months ended June 30, 2017	million yen %	million yen %	million yen %	million yen %
   	35,494 3.6	1,255 (46.4)	1,222 (41.5)	423 (69.1)
   Three months ended June 30, 2016	34,258 (2.7)	2,340 150.1	2,090 232.0	1,368 165.9

   Net income per share	Fully diluted net income per share
   Three months ended June 30, 2017 Three months ended June 30, 2016	yen 16.38 52.94	yen 16.22 52.54

   (Note) Comprehensive income	Three months ended June 30, 2017:	-578 million yen (-%)
   Three months ended June 30, 2016:	-2,254 million yen (-%)

3. Consolidated financial position

4. Total assets	Net assets	Equity ratio
   As of June 30, 2017 As of March 31, 2017	million yen 135,596 136,928	million yen 63,890 64,778	% 47.0 47.2

   (For reference) Shareholders' equity 63,737 million yen at June 30, 2017

   64,613 million yen at March 31, 2017

5. Dividend payments

   Dividend per share
   (Date of record)	End of first quarter	End of second quarter	End of third quarter	End of year	For the year
   Year ended March 31, 2017 Year ending March 31, 2018	yen - -	yen 8.00	yen -	yen 12.00	yen 20.00
   Year ending March 31, 2018 (projection)	12.00	-	14.00	26.00

   (Note) Revisions to dividend projection published most recently: No

6. Forecast of consolidated results for year ending March 2018 (April 1, 2017 - March 31, 2018)

   (% shows the year-on-year change)

   Net sales	Operating income	Recurring income	Net income attributable to owners of parent	Net income per share
   Interim	million yen %	million yen %	million yen %	million yen %	yen
   	69,800 4.2	3,300 (0.8)	3,000 5.0	2,100 (0.6)	81.25
   Full year	142,000 3.9	7,000 1.3	6,400 2.3	4,400 (11.9)	170.24

   • Notes

   • Significant changes to subsidiaries during the current term (changes for a specified subsidiary accompanying a change in the scope of consolidation): None

   • Application of specific accounting treatment to the preparation of quarterly consolidated financial statements: None

   • Changes in accounting principles and changes or restatement of accounting estimates

   • Changes in accounting principles associated with revision of accounting standards, etc.: None

   • Changes in accounting principles other than (i): None

   • Changes in accounting estimates: None

   • Restatement: None

   • Number of shares outstanding (Common stock)

   • Number of shares outstanding at end of period (including treasury stock) 26,027,720 shares at June 30, 2017

     26,027,720 shares at March 31, 2017

   • Number of treasury stock at end of period 159,952 shares at June 30, 2017 182,502 shares at March 31, 2017

   • Average number of shares (Quarterly cumulative period) 25,848,678 shares at June 30, 2017

   25,846,078 shares at June 30, 2016

   • This financial summary is not subject to the statutory quarterly review.

   • Explanation for appropriate use of financial forecasts and other special remarks

   This material contains forward-looking statements based on information obtained by the management as of the day of publication, as well as certain assumptions that the management believes to be reasonable. A number of factors could cause actual results to differ materially from expectations. For notes on the use of the results forecasts and assumptions as the basis for the results forecasts, please see "1. Qualitative Information on Consolidated Operating Results, etc. for the First Quarter (3) Qualitative Information Concerning Consolidated Earnings Forecasts" on page 3 of the accompanying materials.

   Accompanying Materials - Contents

7. Qualitative Information on Consolidated Operating Results, etc. for the First Quarter 2

8. Qualitative Information Concerning Consolidated Operating Results 2

9. Qualitative Information Concerning Consolidated Financial Position 3

10. Qualitative Information Concerning Consolidated Earnings Forecasts 3

11. Consolidated Quarterly Financial Statements and Key Notes 4

12. Quarterly Consolidated Balance Sheet 4

13. Quarterly Consolidated Income Statements and

    Quarterly Consolidated Statements of Comprehensive Income 6

    Quarterly Consolidated Income Statements

    First Quarter 6

    Quarterly Consolidated Statements of Comprehensive Income

    First Quarter 7

14. Notes on Going Concern Assumptions 8

15. Notes for Significant Change in the Amount of Shareholders' Equity 8

16. Segment Information 8

17. 1. Qualitative Information on Consolidated Operating Results, etc. for the First Quarter

18. Qualitative Information Concerning Consolidated Operating Results

    During the first quarter of the fiscal year under review, the Japanese economy remained on a gradual recovery path as consumer spending and capital expenditure picked up and corporate earnings and the employment situation improved. The global economy, in general, has slowly been recovering. The U.S. economy, for instance, continued its steady recovery, and in Asia, the Chinese economy improved thanks partly to the government's policies and the Indian economy indicated a moderate recovery mainly on the strength of domestic demand.

    In this environment, the Group steadily pursued initiatives under its medium-term management strategy (2016-2018).

    For the first quarter of the fiscal year under review, the Group recorded consolidated net sales of ¥35,494 million (up 3.6% year on year), consolidated operating income of ¥1,255 million (down 46.4% year on year), recurring income of ¥1,222 million (down 41.5% year on year), and net income attributable to owners of parent of ¥423 million (down 69.1% year on year).

    Operating results by segment are as follows:

19. Die Casting Business: Japan

    In Japan, orders received by the Company increased primarily as a result of a rebound from the reduced production at automakers, the Company's main customers, caused by the 2016 Kumamoto earthquakes and strong exports to the North American market, and net sales rose by 13.6% year on year, to ¥16,852 million. The segment profit was reduced by 44.3% year on year, to ¥404 million, largely due to the impact of revised product prices and a rise in depreciation and labor expenses despite the increase in orders received.

20. Die Casting Business: North America

    In the North American automotive market, automakers, the Company's key customers, have indicated a slowdown in sales, which had been strong for several years. The Company has continued to work on increasing its productivity in response to factors such as a decline in orders received due to downsizing, in addition to this slowdown in the U.S. market. Meanwhile, in Mexico, orders received from key customers have continued to grow. Consequently, in the North American segment, net sales decreased 5.4% year on year, to ¥10,443 million, and profit fell by 63.0% year on year, to ¥381 million yen, primarily as a result of reduced orders received in the U.S.

21. Die Casting Business: Asia

    In China, sales of SUVs made by Japanese automakers, the Company's main customers, increased, offsetting a slowdown in sales of compact vehicles caused by a reduction in tax benefits for compact vehicles at the end of 2016, and orders of related parts received by the Company rose. In India, the volume of orders received by the Company has begun to pick up on the back of the ongoing strong performance of the automotive market. In this environment, net sales in Asia climbed to ¥6,655 million (up 3.5% year on year) despite the impact of foreign currency translation and other factors, while the segment profit fell to ¥364 million (down 4.7%).

22. Aluminum Business

    In the Aluminum business, while the volume of sales increased year on year, selling prices fell due to changes in the state of the aluminum market; consequently, net sales declined 1.5%, to ¥1,107 million. The segment recorded a profit of ¥56 million (down 37.2% year on year), mainly reflecting the impact of rising fuel expenses despite the Company's cost reduction efforts.

23. Proprietary Products Business

24. In the Proprietary Products business, net sales amounted to ¥435 million (down 47.7% year on year), which was largely attributable to a year-on-year decrease in orders received for clean rooms from semiconductor-related companies, the Company's main customers, and for data centers from telecommunications companies. The segment profit fell to ¥53 million (down 11.5% year on year), mainly as a result of reduced net sales.