HIKARI TSUSHIN : For the Nine Months Ended December 31, 2015 Consolidated Financial Results

１ For the Nine Months Ended December 31, 2015 Consolidated Financial Results

Company Name	: Hikari Tsushin Inc
Stock Exchanges on which the Shares are listed	: Tokyo Stock Exchange - First Section
Code Number	: 9435
URL	: http://eng.hikari.co.jp/
Representative	: Takeshi Tamamura, President and COO
Contact	: Koh Gidoh, Managing director, Head of Administrative Headquarters
: Tel. +81-(0)3-5,951-3,718

(Amounts are rounded down to the nearest million yen)

1. Consolidated Results for the Nine Months Ended September 30, 2015 (April 1, 2015 through September 30, 2015)

2. Consolidated Financial Results (Percentages are shown as year-on-year changes)

   Net Sales		Operating Income		Ordinary Income		Net Income
   Million Yen	%	Million Yen	%	Million Yen	%	Million Yen	%
   For the Nine Months Ended December 31, 2015	421,214	4.2	26,096	43.8	29,108	28.9	22,012	34.7
   For the Nine Months Ended December 31, 2014	404,102	0.7	18,141	(19.5)	22,574	(23.2)	16,340	(31.2)

   
   

   Net Income Per Share	Diluted Net Income Per Share
   Yen	Yen
   For the Nine Months Ended December 31, 2015	474.19	472.38
   For the Nine Months Ended December 31, 2014	354.65	353.21

   
   

3. Consolidated Financial Position

Total Assets	Net Assets	Equity Ratio	Net Asset Per Share
Million Yen	Million Yen	%	Yen
December 31, 2015	394,953	182,069	42.8	3,607.16
March 31, 2015	393,352	175,511	41.0	3,488.34




4. Cash Dividends

   Dividends Per Share
   (Term Recorded)	Q1	Q2	Q3	Q4	Annual
   Yen	Yen	Yen	Yen	Yen
   FY2015.3（Full Year）	40.00	40.00	40.00	40.00	160.00
   FY2016.3（Full Year）	45.00	45.00	45.00
   FY2016.3 (Forecast)	45.00	180.00

   (Note) Revisions to the Forecast of Cash Dividends in the Current Quarter: None

5. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2016 (April 1, 2015 - March 31, 2016)

   Net Sales		Operating Income		Ordinary Income		Net Income		Net Income Per Share
   FY2016.3 (Full Year)	Million Yen	%	Million Yen	%	Million Yen	%	Million Yen	%	Yen
   	570,000	1.3	36,000	12.2	39,000	6.7	25,000	20.4	533,82

   (Note) Revisions to the Forecast of Consolidated Results in the Current Quarter: Yes

   
   

6. Other

1. Changes Among Significant Subsidiaries during the Quarter

   (Changes Among Specific Subsidiaries Resulting in Changes in the Scope of Consolidation): None New: None

   Elimination: None

2. Adoption of special accounting treatment for preparing quarterly consolidated financial statements: None

3. Changes in accounting policies, accounting estimates and retrospective restatements in the consolidated financial statements

   ① Changes due to revisions in accounting standards: Yes

   ② Changes Other Than (2)-① Above: None

   ③ Changes in accounting estimates: None

   ④ Retrospective restatements: None

4. Number of Shares Issued and Outstanding (Common Stock)

① Number of Shares Issued and Outstanding at the End of Each Period (Including Treasury Stock)

As of December 31, 2015: 47,749,642 As of March 31, 2015: 47,749,642

② Number of Treasury Stock at the End of Each Period

As of December 31, 2015: 917,348 As of March 31, 2015: 1,537,575

③ Average Number of Shares Issued and Outstanding in Each Period

For the Nine Months ended

December 31, 2015: 46,422,054

For the Nine Months ended

December 31, 2014: 46,074,984




Information Regarding the Audit Procedures

At the time of disclosure of this report, the procedures for the review of quarterly consolidated financial statements, pursuant to the "Financial Instruments and Exchange Act" of Japan, have not been completed.




Cautionary Statement with Respect to Forward-Looking Statements

This report contains forward-looking statements that reflect Hikari Tsushin's plans and expectations. These forward-looking statements do not guarantees of future performance and involve known and unknown factors that may cause actual results to differ from these statements.




Qualitative Information and Financial Statements
1.	Qualitative Information about Consolidated Results
A brief review of the domestic economic circumstances for FY2016 3Q ended December 31 (Apr 1, 2015 - December 31, 2015) goes as follows: The business environment showed an overall trend of modest recovery in spite of uncertainty in the global economy. In the telecommunications industry, where the market is maturing, companies have expanded their services by entering MVNO business, introducing new price packages, etc. Under these circumstances, Hikari Tsushin has succeeded in accumulating a high continuous profit. The primary factors were increased sales of in-house developed products, MVNO service and other products and services with high continuous profit, in addition to the traditional indirect sales.




(Millions of Yen)




For the Nine Months Ended December 31, 2014 Apr 1, 2014 - December 31, 2014	For the Nine Months Ended December 31, 2015 Apr 1, 2015 - December 31, 2015	Change	Change (%)
Net Sales	404,102	421,214	17,111	4.2
Operating Income	18,141	26,096	7,954	43.8
Ordinary Income	22,574	29,108	6,534	28.9
Net Income Before Tax	32,339	42,810	10,471	32.4
Net Income	16,340	22,012	5,672	34.7







CORPORATE Business CORPORATE business segment provides door-to-door sales of office automation equipment, eco-friendly products and mobile phones, and telemarketing or online sales of solutions for operation efficiency, fixed-line Internet service, water-cooler, and broadband service to SME. CORPORATE business also provides business specific solutions through sales of online media advertisements. Under these conditions, CORPORATE business segment progressed steadily. The primary factor was an increase in sales of water coolers with high continuous profit by indirect sales. As a result, net sales of CORPORATE business was ¥203,037 million and operating income was ¥18,827 million in FY2016 3Q (the Nine Months ended December 31, 2015).

SHOP Business SHOP business segment provides mobile Wi-Fi routers, In-house content, and mobile phones and supplementary products throughout Japan. Sales of mobile phones decreased in the already mature telecommunications industry. On the other hand, sales of mobile Wi- Fi routers and In-house contents as a supplementary service for mobile phones increased steadily for FY2016 3Q. As a result, net sales of SHOP business was ¥198,540 million and operating income was ¥7,842 millionfor FY2016 3Q..

Insurance Business

Insurance business contains traditional telemarketing sales of insurance plans from call centers, telemarketing operator dispatching business to companies with strong customer base, online and offline sales of insurance plans to consumers, and consulting service to corporate clients.

Earnings increased in FY2016 3Q mainly due to the increase in sales channels in various industries, enabled by the subsidiary acquisition of corporations specializing in offline and online sales of insurance plans, in the previous year.

As a result, net sales of Insurance business was ¥22,094 million and operating income was ¥3,243 million for FY2016 3Q.




Consolidated Financial Position

March 31, 2015	December 31, 2015
Million Yen	Million Yen
Total Assets	393,352	394,953
Liabilities	217,840	212,884
Net Assets	175,511	182,069

Change

Million yen

1,601

(4,956)

6,557




Total assets increased by ¥1,601 million to ¥394,953 million in FY2016 3Q compared to FY2015 4Q. The primary factor was the increase in appropriation the goodwill.




Liabilities decreased by ¥4,956 million to ¥212,884 million in FY2016 3Q compared to FY2015 4Q. The primary factor was the decrease in accounts payable.




Net Assets decreased by ¥6,557 million to ¥182,069 million in FY2016 3Q compared to FY2015 4Q. The primary factor was the increase in dividend of surplus.




Consolidated Cash Flows

For The Nine Months Ended December 31, 2014 Apr 1, 2014 -December 31, 2014	For The Nine Months Ended December 31, 2015 Apr 1, 2015 -December 31, 2015
Cash Flow from Operations	Million Yen	Million Yen
	19,989	3,351
Cash Flow from Investment	925	10,740
Cash Flow from Financial Activities	(5,022)	(6,833)
Cash (and Equivalents) at the End of the Term	41,350	47,346

Cash flow from operations increased by ¥3,351 million compared to FY2015 3Q ended December 31, 2015, mainly due to the satisfactory achievement.

Cash flow from investment increased by ¥10,740 million compared to FY2015 3Q ended December 31, 2015, mainly due to the sale of investment securities.

Cash flow from financial activities decreased by ¥6,833 million compared to FY2015 3Q ended December 31, 2015, mainly due to loans from financial institutions.