Latest Financial Results (IFRS)

Consolidated Financial Results for the Year Ended March 31, 2018

In the year ended March 31, 2018, the final year of Medium-Term Management Plan 2017 - Challenge for Growth, conditions in the global economy proved firm due to the support of growth in developed countries witnessing increased consumption and in emerging countries in which markets were buoyed by the growth in developed countries. Resource prices were likewise solid amidst bullish demand.
The Company’s net sales (JGAAP) for the year ended March 31, 2018, were up year on year due to increased sales in the Retail & Lifestyle Business Division, a result of higher tobacco transactions volumes; in the Chemicals Division, a result of the benefits of the new acquisition of a European chemical distributor and marketing company and higher plastic resin transaction volumes; and in the Metals & Coal Division, a result of rises in prices and transactions volumes for coal and other resources.
Gross profit grew thanks to a rise in automobile sales volumes in overseas automobile wholesale businesses, higher selling prices in overseas coal businesses, and earnings contributions from infrastructure-related businesses. Profit for the year (attributable to owners of the Company) was up as a result of the higher gross profit as well as an increase in share of profit of investments accounted for absence of impairment losses in grain collection businesses recorded in previous fiscal year and using the equity method associated with a steel-related operating company.

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(Billions of Yen)

	FY2016 Results	FY2017 Results	Difference
Net Sales (JGAAP)	3,745.5	4,209.1	+463.6
Gross Profit	200.7	232.4	+31.7
Profit for the year attributable to owners of the Company	40.8	56.8	+16.0

Changes of Yearly Financial Results (Cumulative)

Gross Profit

Profit attributable to owners of the Company

Segment Performance [Profit for the year attributable to owners of the Company]

Graph
Table

Segment Performance [Profit for the Period (Attributable to owners of the Company)]

(Billions of Yen)

	FY2016	FY2017	Difference
Automotive	3.6	6.5	+2.9
Aerospace & IT Business	9.9	4.5	(5.4)
Infrastructure & Environment Business	4.2	7.0	+2.8
Energy	(0.6)	(8.5)	(7.9)
Metals & Coal	10.0	21.9	+11.9
Chemicals	8.3	8.7	+0.4
Foods & Agriculture Business	(6.9)	4.0	+10.9
Retail & Lifestyle Business	7.3	5.7	(1.6)
Industrial Infrastructure & Urban Development	1.3	2.1	+0.8
Other	3.7	4.9	+1.2

Factor behind year on year change in earnings

■Automotive ¥ 6.5 billion (up ¥2.9 billion YoY): Increased earnings due to the acquisition of new dealership businesses as well as rising unit sales in the overseas automobile wholesale business
■Aerospace & IT Business ¥ 4.5 billion (down ¥ (5.4) billion YoY): Decreased due to rebound from gain on partial sale of IT business subsidiary in the previous fiscal year
■Infrastructure & Environment Business ¥ 7.0 billion (up ¥ 2.8 billon YoY): Increased earnings due to large-scale infrastructure-related projects/the start of operations at domestic solar power businesses
■Energy ¥(8.5) billion (down ¥ (7.9) billion YoY): Decreased due to one-time losses related to oil and gas interests
■Metals & Coal ¥ 21.9 billion (up ¥ 11.9 billion YoY): Increased due to higher prices of coal and other resources, in addition to recovery of steel market conditions
■Chemicals ¥ 8.7 billion (up ¥ 0.4 billion YoY): Increased due to higher methanol prices
■Foods & Agriculture Business ¥ 4.0 billion (up ¥ 10.9 billion YoY): Increased due to absence of losses in grain collection businesses recorded in the previous fiscal year
■Retail & Lifestyle Business ¥ 5.7 billion (down ¥(1.6) billion YoY): Decreased despite solid business performance due to absence of gain on sales of shopping centers in Japan recorded in the previous fiscal yea
■Industrial Infrastructure & Urban Development ¥ 2.1 billion (up ¥ 0.8 billion YoY): Increased due to solid performance in domestic real estate businesses

Commodity Prices and Exchange Rates

	FY2016 Results (Annual Avg.)	FY2017 Initial Assumption (Annual Avg.)	FY2017 Results (Annual Avg.)
Crude oil (Brent)	US$49.9 / bbl	US$50.0 / bbl	US$57.9 / bbl
Thermal Coal *1	US$73.6 / t	US$77.5 / t	US$93.9 / t
Exchange rate *2	¥108.7 / US$	¥110.0 / US$	¥110.7 / US$

*1: The results in the above table are cited from the GlobalCOAL NEWC Index and differ from our sales prices.
*2: Impact of exchange rate fluctuations on earnings: ¥1/US$ change alters gross profit by approx.
¥0.5 billion annually, profit for the year (attributable to owners of the Company) by approx. ¥0.25 billion annually, and total equity by approx. ¥2.0 billion annually.