Accordia Golf : Consolidated Financial Results for the First Three Quarters of the Fiscal Year Ending March 31, 2017 (Japanese Accounting Standards)

A Member of the Financial Accounting Standards Foundation

February 10, 2017 Company Name: Accordia Golf Co., Ltd. Listing Exchanges: First section of the Tokyo Stock Exchange Securities Code: 2131 URL: http://www.accordiagolf.com

Representative: (Title) President & CEO (Name) Yuko Tashiro For Inquiries, Contact: (Title) Member of the Board and Managing Executive Officer (Name) Takabumi Suzuki

TEL: (03) 6688-1506

Planned Submission Date for the Quarterly Report: February 13, 2017 Planned Starting Date for Dividend Payments: -

Supplementary documents for quarterly results: YES

Quarterly results briefing: No

(Rounded down to nearest million yen)

1. Consolidated Performance for the First Three Quarters of the Fiscal Year Ending March 31, 2017 (April 1, 2016 - December 31, 2016)

2. Consolidated Operating Performance (Cumulative) (% indicates year-on-year change)

   	Operating Revenues		Operating Income		Ordinary Income		Profit Attributable to Owners of Parent
   FY 3/2017 3Q	Yen millions	%	Yen millions	%	Yen millions	%	Yen millions	%
   	37,901	(1.7)	5,727	(11.3)	5,648	(26.6)	4,832	(12.1)
   FY 3/2016 3Q	38,565	(29.0)	6,458	(6.3)	7,700	147.5	5,497	(12.4)

   (Note) Comprehensive Income FY 3/2017 3Q: 4,880 million yen (-11.2%) FY 3/2016 3Q: 5,495 million yen (-11.3%)

   	Net Income per Share	Fully-Diluted Net Income per Share
   FY 3/2017 3Q	Yen	Yen
   	68.54	-
   FY 3/2016 3Q	77.97	-

   (Notes)Fully-diluted net income per share are not presented as there are no dilutive potential shares.

   	Total Assets	Net Assets	Equity Ratio
   FY 3/2017 3Q	Yen millions	Yen millions	%
   	149,390	52,240	34.9
   FY 3/2016	152,054	50,045	32.7

3. Consolidated Financial Position

4. Reference: Shareholders' Equity FY 3/2017 3Q: 52,109million yen FY 3/2016: 49,783 million yen

   	Dividends per Share
   (Record Date)	End of Q1	End of Q2	End of Q3	Fiscal Year End	Annual
   FY 3/2016	Yen	Yen	Yen	Yen	Yen
   	-	0.00	-	36.00	36.00
   FY 3/2017	-	0.00
   FY 3/2017 (Forecast)	-	0.00	0.00

5. Dividends

   (Note) Revisions to dividend forecasts published most recently: NO

6. Forecasts for Consolidated Performance for the Fiscal Year Ending March 31, 2017 (April 1, 2016 - March 31, 2017)

7. (% indicates year-on-year change)

   	Operating Revenues		Operating Income		Ordinary Income		Profit Attributable to Owners of Parent		Net Income per Share
   Full Year	Yen millions	%	Yen millions	%	Yen millions	%	Yen millions	%	Yen
   	47,800	(1.5)	6,100	(16.5)	4,100	(49.6)	3,000	(45.0)	42.55

   (Note) Revisions to performance forecasts published most recently: NO

   • Notes

   • Changes in significant subsidiaries during the term under review (changes in subsidiaries via share exchange causing a change in the scope of consolidation): NO

     New: -- company	(company name:	)
     Eliminated: -- company	(company name:	)

   • Adoption of accounting treatment unique to the preparation of quarterly consolidated financial statements: NO

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

   • Changes in accounting policies associated with the revision of accounting standards, etc.: NO

   • Changes in accounting policies other than (i): NO

   • Changes in accounting estimates: NO

   • Restatement: NO

     End of FY 3/2017 3Q	84,739,000 shares
     End of FY 3/2016	84,739,000 shares
     End of FY 3/2017 3Q	14,234,565 shares
     End of FY 3/2016	14,234,433 shares
     End of FY 3/2017 3Q	70,504,560 shares
     End of FY 3/2016 3Q	70,504,592 shares

   • Number of shares issued (common stock)

   • Shares Outstanding (incl. treasury stock):

   • Treasury Stock:

   • Average Number of Shares Outstanding (cumulative of consolidated quarters)

   • Explanation about the quarterly review of consolidated financial statements

     This financial summary does not need to undergo a quarterly review under the Financial Instruments and Exchange Act. The quarterly consolidated financial statements under the Financial Instruments and Exchange Act have been reviewed at the time of the announcement of this financial summary.

   • Explanation on proper use of earnings forecasts and other noteworthy items

   The forecasts provided above have been prepared based on currently available information, and includes many uncertainties. Actual results may differ significantly from the above forecasts for various reasons.

   For details, please refer to "1. (3) Information on future forecast including consolidated earnings forecast" of the accompanying materials.

    Accompanying Materials - Contents
8. Qualitative Information on Consolidated Results, etc. for the First Three Quarters Ended December 31, 2016 ................................................................................................................................................................................. 2

9. Qualitative information on consolidated results 2

10. Qualitative information on consolidated financial position 3

11. Information on future forecast including consolidated earnings forecast 4

12. Matters Relating to Summary Information (Notes) 4

13. Changes in significant subsidiaries during the quarter under review 4

14. Adoption of accounting treatment unique to the preparation of quarterly consolidated financial statements 4

15. Changes in accounting policies and changes or restatement of accounting estimates 4

16. Consolidated Quarterly Financial Statements 5

17. Consolidated quarterly balance sheet 5

18. Consolidated quarterly statements of income and comprehensive income 7

19. Consolidated quarterly statement of cash flows 9

20. Notes on quarterly consolidated financial statements 11

21. (Notes concerning the going concern assumption) 11

    (Notes concerning extreme changes in shareholders' equity) 11

    (Significant subsequent events) 12

22. Supplementary Information 15

23. Production, orders received, and sales 15

    1. Qualitative Information on Consolidated Results, etc. for the First Three Quarters Ended December 31, 2016

    (1) Qualitative information on consolidated results

    During the first three quarters of the consolidated fiscal year under review, demand for golfing, particularly in the spring and fall high seasons, remained generally stable in the golf industry where the Accordia Golf Group operates. However, poor summer weather in August and September caused cancellations to increase.

    In these circumstances, the Accordia Golf Group, while taking steps to increase the number of rounds played at facilities operated, pursued the basic strategies adopted in the new Medium-Term Management Plan (Accordia Vision 2017), whose final year is fiscal 2017 ("creation of capital gains based on a circulating business model" and "creation of stable cash flows from expanded outsourced management business"), and implemented the following management policies.

    Golf Course Management Business

    The Group stepped up efforts to offer valuable products and services to customers at reasonable prices, and took measures to attract customers through the introduction of a golf course brand and an original loyalty program and stronger coordination with driving ranges. However, the number of rounds played at the Group's golf courses (owned or managed under contract by the Group) totaled 6.58 million (a decrease of 100,000 from the same period of the previous fiscal year) in the first three quarters under review, reflecting voluntary golfing restraint under the effects of the 2016 Kumamoto Earthquakes in the Kyushu Region, poor summer weather, and the sale of three golf courses in the previous and current fiscal years.

    Optimization of Golf Course Portfolio through Acquisition of Golf Courses

    The Group is studying golf courses recommended for acquisition in a bid to acquire them in the current and subsequent fiscal years. In the meantime, as part of its golf course portfolio strategies, the Group sold one golf course in Hokkaido that was expected to generate less revenue in the future. As a result, the Group operated 135 golf courses (including 42 courses owned by the Group and 93 courses managed under contract for operations) as of the end of the first three quarters under review.

    Driving Range Operation Business

    The Group advanced measures for attracting customers and bolstered its services by providing a satisfying practice environment, operating golf schools and coordinating more closely with other operators in sending customers to golf courses. The Group also closed an unprofitable indoor driving range in Tokyo and opened the Accordia Golf Studio in Minato-ku and Taito-ku, Tokyo as indoor driving ranges under a new brand. In addition, the Group sold a driving range in Hyogo Prefecture to increase asset efficiency. As a result, the Group operated 26 driving ranges as of the end of the first three quarters under review.

    Business trust-based asset-light strategy

    The Company is continuing efforts to improve the revenue of its golf courses to further improve its asset efficiency, and is making intensive preparations for additional asset-light strategies for golf courses with confirmed stable profitability.

    Consequently, the Group recorded operating revenue of 37,901,529,000 yen, a decrease of 663,874,000 yen, or 1.7% year on year, for the first three quarters under review.

    Reflecting the decline in operating revenue stated above, operating income for the Group decreased 731,092,000 yen, or 11.3% year on year, to 5,727,605,000 yen.

    Ordinary income decreased 2,051,582,000 yen, or 26.6% year on year, to 5,648,688,000 yen, mainly due to a fall of 807,182,000 yen in equity in earnings of affiliates and an increase of 581,999,000 yen in syndicate loan fees associated with refinancing.