Summary of Financial Statement for the 2nd Quarter of

Summary of Financial Statement

for the 2nd Quarter of Fiscal

Year 2017

November 10 , 2017

TABUCHI ELECTRIC CO., LTD (Security code:6624)

Copyright(C) Tabuchi Electric Co., Ltd. All rights reserved. 1

FY2017 2QResult Overview


Main point of FY2017 2Q Result

（Power Supply・Energy solution business ）The domestic PV power generation market has delayed the accreditation procedure after the implementation of the revised FIT, and This also had a big impact on our business. With regard to the sales expansion of North American market, installation had been just started, and we try to implement all measures to expand sales targets towards the second half in the future.

（Power Supply・Power Supply & Device business）Adapters for amusement machine have responded to increased demand in full production from the first quarter, greatly contributing to increased sales.

（Transfomer・Power Supply & Device business）The demand for air conditioner reactors increased in Japan and ASEAN countries, but overall sales remained steady as the Chinese business stagnated.


Consolidated Operating Result

FY2016

2Q

FY2017

2QDifference

Sales 12,984 13,751 767

Operating

Profit▲1,096 ▲2,171 ▲1,074

Current Profit ▲1,364 ▲2,144 ▲780

Net

Profit▲912 ▲4,426 ▲3,514

Along with an increase of AC adaptor for amusement machine, stagnation of domestic PV market and a delay of oversea expansion, sales is slightly increased. Cost reduction achieved as planned, executed Loss on inventory valuation and impairment.

(Unit: MJPY)


Operating Result by Segment

F Y 2 0 1 6 - 2 Q F Y 2 0 1 7 - 2 Q D i f f e r e n c e

Sales Operating Profit Sales Operating Profit Sales Operating Profit

Power

Supply8,139 ▲1,223 8,837 ▲2,137 697 ▲914

Trans-

former4,844 234 4,913 68 69 ▲166

Adj. - ▲108 - ▲102 - +6

Total 12,984 ▲1,096 13,751 ▲2,171 767 ▲1,074

(Unit: MJPY)


Summary for Sales by Segment

Power Supply Business Transformer Business

+8.6%(vs FY2016-2Q) +1.4%(vs FY2016-2Q)

Continued weakness in domestic PV generation market stagnation and slow start of overseas sales

Power supply for amusement machine is full production capacity

Reactor for air conditioner expands to ASEAN

Various high frequency transformers increased by more than 10% to ASEAN market


Quarterly Sales Trend by Segment

8,242 8,754

6,148 6,799

3,702 4,437

3,180

5,444

4,506 4,331

2,344 1,995

2,425

2,392

2,627

2,216

2,201

2,345

2,624 2,289

0

2,000

4,000

6,000

8,000

10,000

12,000

15-1Q 15-2Q 15-3Q 15-4Q 16-1Q 16-2Q 16-3Q 16-4Q 17-1Q 17-2Q

Power Supply Transformer

FY2016FY2015

(Unit: MJPY)

FY2017


Consolidated Operating Result Quarterly Trend

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

-4,000

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

4,000

15-1Q 15-2Q 15-3Q 15-4Q 16-1Q 16-2Q 16-3Q 16-4Q 17-1Q 17-2Q

Operating Profit Current Profit Net Profit Sales

Opera

ting, o

rdin

ary, a

nd n

et pro

fit (bar ch

art)

）

Sales

(line ch

art)

FY2016FY2015 FY2017

(Unit: MJPY)


5,009

6,561

0

2,000

4,000

6,000

8,000

122.4%

172.9%

0.0%

50.0%

100.0%

150.0%

200.0%

Consolidated Financial Position

Asset ‘17/3/E ’17/9/ELiabilities

&Equity’17/3/E ’17/9/E

Cash & EQV. 4,365 3,102 Acc. Payables 4,434 4,260

Acc. Receivables 5,268 4,651 Short-term debt 7,065 7,513

Inventories 9,064 8,546 Others (current) 3,177 2,995

Others (current) 1,024 1,376 Long-term debt 2,309 2,150

Fixed asset 12,121 9,633 Others (NC) 4,951 4,791

Deferred asset 0 0 Equity 9,905 5,599

Total 31,844 27,310 Total 31,844 27,310

Equity ratio Fixed asset/Equity ratio

’17/3/E ’17/9/E

Net Interest-bearing debt

’17/3/E ’17/9/E

31.1%

20.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

’17/9/E’17/3/E

(Unit: MJPY)

(Unit: MJPY)


FY2017Forecast


Unit: Million Yen

*Foreign exchange rate : JPY110/USD

FY2016FY2017

FH LH Total

Sales 26,156 13,751 14,549 28,300

Operating

Profit▲3,333 ▲2,171 171 ▲2,000

Operating

Profit ratioーー 1.2％ー

Current Profit ▲3,415 ▲2,144 44 ▲2,100

Net

Profit▲5,782 ▲4,426 126 ▲4,300

Dividend

per share

Yearly8JPY

At-half

0JPYYear end

0JPYYearly0JPY

<Forecast> Consolidated Income


First half results

Sales

Amusement power supply continues full production Significant increase in sales

Transformer business has been steady, including small power transformer switching transformer

Inverter declined due to stagnation due to delays in FIT re-certification of domestic solar power generation market and delays in overseas sales expansion

Ordinary Profit

In addition to a decline in gross profit due to a decline in inverter sales and a fall in selling prices, inventory reduction was reduced

Net Profit

Impairment of fixed assets of energy solution business

Points of first-half results


Second Half Forecast

Sales and Ordinary Profit

The amusement power supply and transformer business is expected to remain strong

In the domestic market of PV inverters, FIT recertification procedures also proceed, and the penetration of residential hybrid systems, industrial low-voltage interconnections and medium capacity products is expected to prosper, sales are bottoming out

In addition to reduction of fixed costs, implementation of additional cost reduction measures and commissioned development of onboard power supply for electric car started

Points of second-half performance forecast


2016 shipment down 34%prospect more than 20% down in 2017 (5～6GW)

Particularly in 1 to 2 Q, FIT re-certification procedures* are stalled, new installation has declined greatly, and recovery falls in the second half

Market prospect for domestic PV

Data：JEMA*Revised FIT（Execute form April 2017)

2,805,593

4,455,129 4,948,156

3,312,189 3,054,798

488,010

793,290 707,942

640,559 1,207,496 1,573,535

4,480,747

5,426,928

7,302,183

3,161,632

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2012 2013 2014 2015 2016 2017

PV inverter shipment (kW)

～10ｋW 10～100ｋW 100ｋW～

Forecast

7.4GW(△34％）

Copyright(C) Tabuchi Electric Co., Ltd. All rights reserved.

Global expansion

・Launch products that feature market to industrial and residential, mainly in the United States, India and other regions, where the market is expanding・PV+Storage hybrid systemHawaii, California, Canada as a priority sales expansion

region, working together with local leading EPCs, making full-scale sales in the second half・In Japan, we began selling small hybrid systems with a storage capacity of 4.0 kWh (Half EIBS)

ResidentialPV+Storage

system

Tabuchi America（San Jose）Sorce:RTS

Industial25/33ｋWInverter

0

5

10

15

20

25

30

35

40

Europe Japan China USA India Other

PV Regional Market（GW)

2015 2016 2017(STD) 2017(High)

ResidentialPV+Storage

systemHalf_EIBS（wall-mounted inverter

with 4.0kWh Battery）


Potential management improvement measures

Leverage the power electronics technology and know-how cultivated in our multi-year solar power generation system for EV power supply products such as "DC-DC converter" and "car charger"

In addition to large passive components such as transformers and reactors, we also incorporate power electronics equipment as an automotive equipment business and will also work toward future development of inverters for drive motors

We will build the automotive equipment business into the third main business division following the power supply and device business and energy solution business

Development consignment in automotive power supply business field

Part of the development work of power supply equipment for electric vehicles and hybrid vehicles from TDK Corporation


Potential management improvement measures

Optimize management and indirect costs of domestic bases

Optimize overseas sales baseClosure of Thai · Bangkok office, reduction of fixed costs by narrowing down priority sales areas in North America

Transfer of production, cost reduction through acceleration of consolidation

Reduction in amortization cost due to impairment of fixed assets

Additional fixed cost reduction measuresIn addition to reducing the fixed costs by default, implement new cost reduction measures

Along with streamlining these business systems, we will realize a more efficient promotion system for power supply device business and energy solution businesses through globalization of technology development system (utilization of development base in Bangkok / Hanoi / Shanghai)


16,996

12,948

8,139 8,625 8,837 10,149

4,339

4,818

4,844 4,547 4,913

4,400

0

5,000

10,000

15,000

20,000

25,000

FH LH FH LH FH LH

Power Supply Transformer

14,549

FY2016 FY2017FY2015

21,336

17,767

12,984 13,172

13,751

<Forecast> Sales Trend by Segment

Unit: Million Yen

*Please note that the statements contained in this document are based on variousassumptions from presently available information and never constitute any guaranteethat projections of the performance will actually realize.

Contact

<Headquarters>Nissay-shinosaka Bldg., 3-4-30 Miyahara,Yodogawa-ku, Osaka 532-0003, JAPAN

<Tokyo Branch>Kinsan Bldg., 3-18-3 Kanda Nishiki-cho,Chiyoda-ku, Tokyo 101-0054, JAPAN

<Investor Relations>℡ +81 3 5259-6250(Osamu Inoue in Business Strategy Dept.)

Documents

Summary of Financial Statement for the 2nd Quarter of