SIIX : Consolidated 2nd quarter Financial Results for the Fiscal Year Ended December 31, 2017

TRANSLATION

Consolidated 2nd quarter Financial Results for the Fiscal Year Ended December 31, 2017

(January 1, 2017 to June 30, 2017)

Company name: SIIX Corporation

Stock code: 7613

Stock exchange listing (Section): Tokyo Stock Exchange, (First Section)

Head office: Osaka, Japan

URL: http://www.siix.co.jp

President: Yoshihito Kikyo

Contact: Seiji Ono

Executive Officer and General Manager, Finance and Accounting Department

Telephone: [phone]

Scheduled date of filing quarterly financial statement: August 10, 2017 Scheduled date of payment of cash dividends: September 4, 2017

August 10, 2017

(Amounts rounded down to million yen)

1. Consolidated 2nd quarter Financial Results (January 1, 2017 - June 30, 2017)

2. Consolidated Results of Operations

   (The percentages in the table below represent changes from the previous fiscal year)

   Net sales		Operating income		Ordinary income
   2nd quarter ended Jun. 2017 2nd quarter ended Jun. 2016	Million yen	YoY change (%)	Million yen	YoY change (%)	Million yen	YoY change (%)
   	111,790 106,362	5.1 (5.6)	4,723 4,494	5.1 13.3	5,043 4,475	12.7 8.0

   Profit attributable to owners of parent		Net income per share (basic)	Net income per share (diluted)
   2nd quarter ended Jun. 2017 2nd quarter ended Jun. 2016	Million yen	YoY change (%)	Yen	Yen
   	3,519 3,702	(4.9) 22.6	142.92 147.31	134.75 139.06

   (Note) Comprehensive Income:

   2nd quarter ended June 2017:	2,459 million yen	( - %)
   2nd quarter ended June 2016:	- 3,238 million yen	( - %)

3. Consolidated Financial Position

   Total assets	Net assets	Capital-to-asset ratio
   2nd quarter ended Jun. 2017 Year ended Dec. 2016	Million yen	Million yen	%
   	118,613 109,695	53,321 51,573	44.6 46.8

   (Reference) Stockholders' equity:

   2nd quarter ended June 2017: 52,885 million yen Year ended December 2016: 51,332 million yen

4. Dividends

   (Base date)	Annual dividends per share
   	1st quarter	2nd quarter	3rd quarter	Term-end	Annual dividends
   Year ended Dec. 2016	―	Yen	―	Yen	Yen
   		24.00		26.00	50.00
   Year ended Dec. 2017	―	26.00
   Year ended Dec. 2017 (forecasts)	―	26.00	52.00

   (note) Changes in Forecasts for Dividends during this quarter: None

5. Consolidated Business Performance Forecasts for the Year Ending December 2017 (January 1, 2017 - December 31, 2017)

   Net sales		Operating income		Ordinary income
   Full year	Million yen	YoY change (%)	Million yen	YoY change (%)	Million yen	YoY change (%)
   	230,000	8.1	10,500	15.0	10,500	14.8

   Profit attributable to owners of parent		Net income per share (basic)
   Full year	Million yen	YoY change (%)	Yen
   	7,600	13.5	308.60

   (note) Changes in Consolidated Business Performance Forecasts for the Fiscal Year Ending December 2017 during this quarter: None

6. Others

8. Transfer of important subsidiaries during the period: Transfer (Newly consolidated: SIIX COXON PRECISION PHILS., INC.)

9. Adoption or non-adoption of a specific method in accounting procedures: None

10. Changes in accounting policy and accounting estimate, and restatement related to consolidated financial statements

11. Changes in accounting policy associated with the revision of accounting standards:

    None

12. Changes in accounting policy other than those described in (i): None

13. Changes in accounting estimate: None

14. Restatement: None

15. Number of outstanding shares (common shares)

16. Number of outstanding shares (including treasury stock):

    2nd quarter ended June 2017: 25,200,000 shares

    Year ended December 2016: 25,200,000 shares

17. Number of treasury stock:

    2nd quarter ended June 2017: 573,075 shares

    Year ended December 2016: 573,002 shares

18. Average number of outstanding shares (quarterly accumulated period)

19. 2nd quarter ended June 2017: 24,626,961 shares

    2nd quarter ended June 2016: 25,135,984 shares

    * These quarterly financial statements are exempt from quarterly review procedures.

    *Explanations and other special notes concerning the appropriate use of business performance forecasts

    The consolidated business performance forecasts given above are based on the information available at the current time and assumptions of supposable market trends, etc., and thus may greatly differ from future performance for a variety of future reasons.

    Consolidated Financial Statements

    (1) Quarterly Consolidated Balance Sheets

    (JPY in millions)

    Previous fiscal year As of Dec. 31, 2016

    Current 2nd quarter As of Jun. 30, 2017

    Assets

    Current assets

    Cash and deposits	8,813	9,756
    Notes and accounts receivable-trade	41,873	43,878
    Merchandise and finished goods	20,483	21,149
    Work in process	1,007	1,387
    Raw materials and supplies	7,026	8,108
    Other	2,994	4,399
    Allowance for doubtful accounts	(34)	(33)
    Total current assets	82,164	88,644
    Noncurrent assets
    Property, plant and equipment
    Buildings and structures	6,397	7,195
    Machinery, equipment and vehicles	6,422	7,084
    Land	2,532	2,517
    Other	1,526	1,254
    Total property, plant and equipment	16,878	18,051
    Intangible assets	454	504
    Investments and other assets
    Investment securities	3,192	2,573
    Investments in capital	3,969	6,124
    Other	3,622	3,300
    Allowance for doubtful accounts	(585)	(585)
    Total Investments and other assets	10,198	11,413
    Total noncurrent assets	27,531	29,969
    Total assets	109,695	118,613

    (JPY in millions)

    Previous fiscal year As of Dec. 31, 2016

    Current 2nd quarter As of Jun. 30, 2017

    Liabilities

    Current liabilities

    Accounts payable-trade	30,752	31,154
    Short-term loans payable	9,569	15,330
    Income taxes payable	754	1,012
    Other	5,530	6,514
    Total current liabilities	46,605	54,011
    Noncurrent liabilities
    Convertible bond-type bonds with subscription rights to shares	6,000	6,000
    Long-term loans payable	1,602	1,251
    Provision for retirement benefits	468	465
    Other	3,444	3,564
    Total noncurrent liabilities	11,516	11,281
    Total liabilities	58,121	65,292
    Net assets
    Shareholders' equity
    Capital stock	2,144	2,144
    Capital surplus	5,624	5,624
    Retained earnings	41,020	43,565
    Treasury stock	(2,027)	(2,027)
    Total shareholders' equity	46,761	49,306
    Accumulated other comprehensive income
    Valuation difference on available-for-sale securities	745	672
    Deferred gains or losses on hedges	4	(3)
    Foreign currency translation adjustment	4,008	3,078
    Adjustment for retirement benefits	(187)	(168)
    Total accumulated other comprehensive income	4,570	3,579
    Subscription rights to shares	-	17
    Non-controlling interests	241	417
    Total net assets	51,573	53,321
    Total liabilities and net assets	109,695	118,613