Pola Orbis Hldg : Summary of Financial Results for Fiscal 2017 First Quarter

For the First Quarter of the Fiscal Year Ended December 31, 2017 (Consolidated)

These financial statements have been prepared in accordance with accounting principles and practices generally accepted in Japan. The following English translation is based on the original Japanese-language document.

Listing: Tokyo Stock Exchange, First Section (Code No.: 4927) URL: http://www.po-holdings.co.jp/

Representative: Satoshi Suzuki, Representative Director And President

Contact: Akira Fujii, Director, Finance Tel: +81-3-3563-5517

Filing Date of Quarterly Securities Report: May 15, 2017

Start of Cash Dividend Payment: －

Supplemental Materials Prepared for Quarterly Financial Results: Yes Conference Presentation for Quarterly Financial Results: None

May 1, 2017

1. Consolidated Performance for the First Three Months Fiscal 2017

   (January 1, 2017-March 31, 2017)

2. Consolidated Operating Results

   (Amounts less than one million yen have been truncated)

   (Percentage figures indicate year-on-year change)

   Net Sales	Operating Income	Ordinary Income	Profit Attributable to Owners of Parent
   FY2017 Three Months	Millions of yen %	Millions of yen %	Millions of yen %	Millions of yen %
   	56,074 13.2	9,127 148.5	8,955 164.8	5,777 59.8
   FY2016 Three Months	49,516 9.1	3,673 26.2	3,381 11.0	3,616 47.8

   Note: Comprehensive income: ¥6,079 million (132.0%) for the three months ended March 31, 2017;

   ¥2,620 million (522.1%) for the three months ended March 31, 2016

   Net Income Per Share	Diluted Net Income Per Share
   FY2017 Three Months FY2016 Three Months	Yen 26.12 16.35	Yen 26.09 16.33

   Note: POLA ORBIS HOLDINGS ("the Company") conducted a four for one stock split effective on April 1, 2017. Basic net income per share and diluted net income per share were calculated assuming that the stock split was conducted at the beginning of fiscal 2016.

3. Consolidated Financial Position

   Total Assets	Net Assets	Equity Ratio	Net Assets Per Share
   FY2017 First Quarter	Millions of yen	Millions of yen	%	Yen
   	229,188	185,874	80.9	838.28
   FY2016	228,845	185,864	81.0	838.32

   Reference: Equity capital: FY2017 First Quarter: ¥185,410 million; FY2016: ¥185,417 million

   Note: A four for one stock split was conducted effective on April 1, 2017. Net assets per share were calculated assuming that the stock split was conducted at the beginning of fiscal 2016.

4. Dividends

   Annual Cash Dividends Per Share
   Q1-end	Q2-end	Q3-end	Year-end	Total
   FY2016	Yen	Yen	Yen	Yen	Yen
   	－	90.00	－	110.00	200.00
   FY2017	－
   FY2017 (Forecast)	25.00	－	30.00	55.00

   Note: Revisions to the cash dividends forecast announced most recently: none

   A four for one stock split was conducted effective on April 1, 2017. Dividends for year ended December 31, 2016 were actual dividends announced before the stock split. Dividends for year ending December 31, 2017 were forecasted based on those post stock split.

5. Consolidated Performance Forecast for the Fiscal Year Ending December 31, 2017

6. (January 1, 2017-December 31, 2017)

   (Percentage figures indicate year-on-year change)

   Net Sales	Operating Income	Ordinary Income	Profit Attributable to Owners of Parent	Net Income Per Share
   First half	Millions of yen %	Millions of yen %	Millions of yen %	Millions of yen %	Yen
   	115,000 7.5	17,000 39.9	17,000 51.0	10,500 27.0	47.47
   Full year	233,000 6.6	33,500 24.5	33,500 23.2	21,500 23.2	97.21

   Note: Revisions to the consolidated performance forecast announced most recently: yes

   A four for one stock split was conducted effective on April 1, 2017. Net income per share were calculated assuming that the stock split was conducted at the beginning of fiscal 2017.

   Notes to Summary Information

7. Changes in significant subsidiaries during the current period

   (Changes in specific subsidiaries resulting in changes in the scope of consolidation) : None

8. Application of special accounting methods for the preparation of the quarterly consolidated financial statements :None

9. Changes in accounting policies, accounting estimates, and restatement

10. Changes in accounting policies associated with revision of accounting standards : None

11. Changes other than (3)-1) : None

12. Changes in accounting estimates : None

13. Restatements : None

14. Number of shares issued and outstanding (common stock)

15. Number of shares issued and outstanding at the end of each period (including treasury stock) At March 31, 2017 229,136,156 shares

    At December 31, 2016 229,136,156 shares

16. Number of shares of treasury stock at the end of each period

    At March 31, 2017 7,958,040 shares

    At December 31, 2016 7,958,040 shares

17. Average number of shares issued and outstanding in each period Three months ended March 31, 2017 221,178,116 shares Three months ended March 31, 2016 221,151,716 shares

18. Note: A four for one stock split was conducted effective on April 1, 2017. Number of shares issued were calculated assuming that the stock split was conducted at the beginning of fiscal 2016.

    Information Regarding Quarterly Review Procedures

    The quarterly financial results report is exempt from quarterly review.

    Explanation of Appropriate Use of Performance Forecast and Other Special Items

    This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual performance may differ materially from these projections resulting from changes in the economic environment and other risks and uncertainties. For performance projections, please refer to "1. Qualitative Information on Consolidated Performance for the First Quarter of Fiscal 2017 (3) Explanation of Consolidated Performance Forecast and Other Predictive Information" on page 5.

    Table of Contents

19. Qualitative Information on Consolidated Performance for the First Quarter of Fiscal 2017……………… 2

20. Explanation of Consolidated Operating Results ………………………………………………………… 2

21. Explanation of Consolidated Financial Position ………………………………………………………… 4

22. Explanation of Consolidated Performance Forecast and Other Predictive Information ……………… 5

23. Quarterly Consolidated Financial Statements ………………………………………………………………… 6

24. (1) Consolidated Balance Sheets ……………………………………………………………………………… 6

25. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ……… 8

26. Notes to Consolidated Financial Statements ……………………………………………………………… 10

(Going concern Assumptions) ……………………………………………………………………………… 10

(Significant Changes in Shareholders' Equity) …………………………………………………………… 10

(Segment Information) ……………………………………………………………………………………… 10

POLA ORBIS HOLDINGS INC. (4927) FY2017 First Quarter Financial Summary

1. Qualitative Information on Consolidated Performance for the First Quarter of Fiscal 2017

2. Explanation of Consolidated Operating Results

3. During the three months of fiscal 2017 (January 1-March 31, 2017), the Japanese economy continued on a moderate recovery track, backed by improvement in employment situation and corporate earnings. However, personal consumption has been at a standstill.

   Although the domestic cosmetics market grew steadily, there were signs of weakening growth in inbound consumption by tourists visiting Japan. The market scale was on par with that of the previous year when inbound consumption is excluded. In the overseas cosmetics market, a modest expansion continued, despite a slowdown in economic growth in China and other emerging countries in Asia.

   Within this market environment, the POLA ORBIS Group (the "Group") continued its efforts to achieve further improved profitability in Japan, a solid shift toward profitability from overseas operations and creation of a brand for next-generation growth. The efforts were in line with the new four-year medium-term management plan (from 2017 to 2020) that started in this fiscal year.

   As a result of these factors, the Group achieved the following consolidated operating results for the three months of fiscal 2017.

   Consolidated net sales for the three months of fiscal 2017 grew 13.2% year on year, to ¥56,074 million, reflecting the strong performance of the flagship brand POLA, in addition to the brands under development-THREE and DECENCIA. Operating income rose 148.5% year on year, to ¥9,127 million, resulting from higher gross profit accompanying the increase in sales. Ordinary income advanced 164.8% year on year, to ¥8,955 million. As a result, profit attributable to owners of parent grew 59.8% year on year, to ¥5,777 million.

   Operating Results Overview (Millions of yen)

   Three Months Ended March 31

   2016 2017

   Year-on-Year

   Amount Change Percent Change (%)

   Net Sales	¥49,516	¥56,074	¥6,557	13.2
   Operating Income	3,673	9,127	5,454	148.5
   Ordinary Income	3,381	8,955	5,573	164.8
   Profit Attributable to Owners of Parent	¥3,616	¥5,777	¥2,161	59.8