Financial

Summary of Financial Results for Fiscal Year Ending December 31, 2015: Japan

Published by KLab

Summary

From the report

Summary of Financial Results for Fiscal Year Ending December 31, 2015 (Japanese GAAP) (Consolidated) hall p This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. February 8, 2016 Name of listed company: KLab Inc. Stock exchange listing: Tokyo Stock Exchange First Section Securities code: 3656 URL: http://www.klab.com/jp/ Representative: [Name] Tetsuya Sanada [Title] President & CEO Contact: [Name] Kazuyuki Takata [Title] Managing Director TEL: +81-3-5771-1100 Scheduled date for annual shareholders meeting: March 26, 2016 Scheduled filing date for securities report: March 28, 2016 Scheduled date for dividends payment: － Supplementary information for financial results: Yes Information meeting for financial report: Yes *Institutional investors and analysts only (Amounts of less than one million yen are rounded off) 1. Consolidated Operating Performance for FY2015 (January 1, 2015 – December 31, 2015) (1) Consolidated Operating Results (year-to-date) (% represents rate of increase or decrease over previous fiscal year) Revenue Operating income Ordinary income Net income

than one million yen are rounded off) 1. Consolidated Operating Performance for FY2015 (January 1, 2015 – December 31, 2015) (1) Consolidated Operating Results (year-to-date) (% represents rate of increase or decrease over previous fiscal year) Revenue Operating income Ordinary income Net income Million yen % Million yen % Million yen % Million yen % FY2015 20,913 (2.2) 2,198 1.6 1,919 (25.1) 700 (60.9) FY2014 21,374 1.8 2,163 — 2,564 — 1,793 — Note: Comprehensive income FY2015: 761 million yen [(56.6%)] FY2014: 1,754 million yen [―%] Net income Diluted net income Ratio of Ratio of Ratio of per share per share net income ordinary income operating income to equity to total assets to revenue Yen Yen % % % FY2015 19.26 18.86 7.4 15.1 10.5 FY2014 52.15 50.21 27.6 23.9 10.1 Reference: Equity in earnings (losses) of affiliates FY2015: (3) million yen FY2014: 32 million yen (2) Consolidated Financial Status Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen FY2015 12,633 9,867 77.7 269.26 FY2014 12,731 9,075 70.8 249.71 Reference: Shareholders’ equity FY2015: 9,819 million yen FY2014: 9,019 million yen (3) Consolidated Cash Flows Net cash Net cash Net cash Cash and provided by (used in) provided by (used in) provided by (used in) cash equivalents operating activities investing activities financing activities at end of period Million yen Million yen Million yen Million yen FY2015 1,228 (4,911) 14 3,627 FY2014 2,824 (911) 523 7,242

h Net cash Net cash Cash and provided by (used in) provided by (used in) provided by (used in) cash equivalents operating activities investing activities financing activities at end of period Million yen Million yen Million yen Million yen FY2015 1,228 (4,911) 14 3,627 FY2014 2,824 (911) 523 7,242 2. Dividends Annual dividends Total Dividend Ratio of amount of payout dividends to End of Q1 End of Q2 End of Q3 Year end Total dividends ratio net assets (Total) (Consolidated) (Consolidated) Yen Yen Yen Yen Yen Million yen % % FY2014 － 0.00 － 0.00 0.00 －－－ FY2015 － 0.00 － 0.00 0.00 －－－ FY2016 (Forecast) － 0.00 － 0.00 0.00 －

3. Consolidated Operating Performance Forecasts for FY2016 (January 1, 2016 – March 31, 2016) (% represents rate of increase or decrease over same period of previous fiscal year) Revenue Operating income Ordinary income Net income Net income attributable to owners per share of parent Million yen % Million yen % Million yen % Million yen % Yen First quarter 4,342 － (350) － (450) － (482) － (13.22) ■ Explanatory Notes (1) Changes to major subsidiaries during the period: None (Changes to specified subsidiaries accompanying changes in scope of consolidation) (2) Changes to accounting policies, estimates, and restatements ① Changes to accounting revision of accounting standards: Yes ② Changes other than ①: None ③ Changes to accounting estimates: None ④ Restatements: None (3) Number of outstanding shares (common shares) ① Period end outstanding shares FY2015 37,797,600 shares FY2014 37,291,500 shares (including treasury shares) ② Period end treasury shares FY2015 1,327,800 shares FY2014 1,174,000 shares ③ Average outstanding shares FY2015 36,373,502 shares FY2014 34,387,585 shares during the period [Reference] Summary of Non-Consolidated Operating Performance 1. Non-Consolidated Operating Performance for FY2015 (January 1, 2015 – December 31, 2015) (1) Non-Consolidated Operating Results (% represents rate of increase or decrease over previous fiscal year) Revenue Operating income Ordinary income Net income Million yen % Million yen % Million yen % Million yen % FY2015 19,875 (1.7) 2,117 (18.7) 2,180 (23.7) 820 (48.6) FY2014 20,215 18.3 2,604 － 2,858 － 1,593 － Net income Diluted net income per share per share Yen Yen FY2015 22.54 22.08 FY2014 46.35 44.63

e Operating income Ordinary income Net income Million yen % Million yen % Million yen % Million yen % FY2015 19,875 (1.7) 2,117 (18.7) 2,180 (23.7) 820 (48.6) FY2014 20,215 18.3 2,604 － 2,858 － 1,593 － Net income Diluted net income per share per share Yen Yen FY2015 22.54 22.08 FY2014 46.35 44.63 (2) Non-Consolidated Financial Status Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen FY2015 12,260 9,614 78.3 263.32 FY2014 12,374 8,790 70.9 242.95 Reference: Shareholders’ equity FY2015: 9,603 million yen FY2014: 8,774 million yen ■ Current Status of Audit Procedures The summary of financial results are not subject to audit procedures in accordance with the Financial Instruments and Exchange Act of Japan, and the audit procedures have not been completed at the time of disclosure of the summary of financial results. ■ Note Regarding the Appropriate Usage of Forecasts and Other Special Instructions The forecasts in this report are based on the current data available to the Group and certain reasonable assumptions and may vary according to various factors in the future. For forecasts, refer to “1. Analysis of Operating Results and Financial Status; (1) Analysis of operating results; ③ Qualitative information on consolidated operating performance forecasts” on page 2 of Supporting Information.

Supporting Information INDEX 1. Analysis of Operating Results and Financial Status 2 (1) Analysis of operating results 2 (2) Analysis of financial status 3 2. Management Policy 5 (1) Basic corporate management policy 5 (2) Benchmark management indicators 5 (3) Medium- to long-term corporate management strategy 5 (4) Corporate challenges 5 3. Rationale behind the Choice of Accounting Standards 6 4. Consolidated Financial Statements 7 (1) Consolidated balance sheets 7 (2) Consolidated statements of income and consolidated statements of comprehensive income 9 (3) Consolidated statements of changes in equity 11 (4) Consolidated statements of cash flows 13 (5) Notes related to consolidated financial statements 15 (Notes related to going concern assumptions) 15 (Changes in accounting policy) 15 (Segment information) 15 (Per share data) 19 - 1 -

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