Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Non-Consolidated Financial Results
for the Year Ended March 31, 2021
(Based on Japanese GAAP)May 14, 2021
Company name:

DAIKEN MEDICAL CO., LTD.

Stock exchange listing: Tokyo
Stock code:
7775
Representative:
Inquiries:

URL

http://www.daiken-iki.co.jp

President
Keiichi Yamada
General Manager, Business Control Division Kenji TamamakiScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 21, 2021
June 21, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 7, 2021
Yes

Holding of financial results meeting:

NoTEL

06-6231-9917(Amounts less than one million yen are rounded down)
1. Non-consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(1) Non-consolidated operating results
Percentages indicate year-on-year changesNet sales
Year ended March 31, 2021
Year ended March 31, 2020

Millions of yen
7,861
8,523

Operating profit% Millions of yen(7.8)
921
1.4
1,194

Diluted earnings pershare
YenYen
23.50
–
29.92
–

Earnings per share
Year ended March 31, 2021
Year ended March 31, 2020

Ordinary profit% Millions of yen(22.9)
957
(4.4)
1,210

Profit% Millions of yen(20.9)
675
(2.9)
859

%
(21.4)
0.9

Ordinary profit/total Operating profit/net
assets
sales
%%%
11.0
8.8
11.7
14.5
11.0
14.0

Profit/equity(2) Non-consolidated financial position
Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
10,752
10,997

Millions of yen
6,182
6,081

Cash flows fromoperating activities
Millions of yen
609
1,436

Cash flows frominvesting activities
Millions of yen
(311)
(160)

Net assets per share%
57.5
55.3

Yen
215.20211.69(3) Non-consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
(492)
2,170
(1,128)2,365

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)

Total cash
dividends (Total)

Total

Dividend payout
ratio (Nonconsolidated)

Ratio of dividends
to net assets (Nonconsolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

–
–

9.00
9.00

––

11.00
11.00

20.00
20.00

574
574

66.8
85.1

9.7
9.4

–

9.00

–

11.00

20.00

1

68.4

3. Forecast of non-consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Percentages indicate year-on-year changes
Net sales
Millions of yen
Six months ending
September 30, 2021
Full year

Operating profit% Millions of yen

Ordinary profit% Millions of yen

ProfitEarnings per share% Millions of yen

%Yen

4,350

15.3

510

12.7

510

4.3

360

2.7

12.53

9,000

14.5

1,200

30.3

1,200

25.4

840

24.4

29.24

4. Notes(1) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

31,840,000 shares As of March 31, 2020

31,840,000 shares

Number of treasury shares at the end of the period
As of March 31, 2021

3,111,559 shares As of March 31, 2020

3,111,559 shares

28,728,441 shares Year ended March 31, 2020

28,728,441 shares

Average number of shares during the period
Year ended March 31, 2021

2

Non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

2,365,400
406,861

2,170,643
207,599

Electronically recorded monetary claims - operating
Accounts receivable - trade821,808
1,497,712

989,922
1,390,157

Finished goods
Work in process

770,45167,009

891,41286,665

Raw materials
Prepaid expenses

335,991
18,237443,833
23,090Other
Allowance for doubtful accounts

121,038(92)

69,312(87)

6,404,420

6,272,550

2,104,782
2,105

2,019,367
1,744

Machinery and equipment, net
Vehicles, net

79,598163

183,88132

Tools, furniture and fixtures, net
Land

121,426
1,703,670

240,247
1,703,670

30,983
258,197

36,804
39,3434,300,929

4,225,091

Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Structures, net

Leased assets, netConstruction in progress
Total property, plant and equipment
Intangible assets
Software22,51016,620Software in progress
Telephone subscription right

1,700
5,103

–
5,103

Total intangible assets

29,313

21,723

Investments and other assets
Investments in capital

1010

Long-term prepaid expenses
Deferred tax assets

4,325
194,818

2,954
166,802

Guarantee deposits
Membership

53,532
13,10053,391
13,100Life insurance funds
Long-term accounts receivable - other

8,797
13,1508,797
13,150Allowance for doubtful accounts(24,650)(24,650)

Total investments and other assets

263,083

233,555

Total non-current assets
Total assets

3

4,593,325

4,480,370

10,997,746

10,752,921

(Thousands of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes payable - trade554,793405,109

Electronically recorded obligations - operating
Accounts payable - trade–411,674

141,364
411,252

Short-term borrowings
Current portion of long-term borrowings

800,000
898,032

1,000,000
704,034

Accounts payable - other
Lease obligations

234,311
8,992

140,220
11,875

Accrued expenses
Income taxes payable

445,687
180,854

179,500
111,074

Accrued consumption taxes
Deposits received

90,78912,337

8,089
12,178Notes payable - facilities
Electronically recorded obligations-facilities

95,405–32,826561––

179,346
6,738

Provision for Sales allowance
Asset retirement obligations
Other

49,796

2,844

3,782,673

3,347,018

1,091,892
24,713

1,177,859
28,894Long-term guarantee deposits
Other

14,0662,789

14,085
2,789

Total non-current liabilities

1,133,460

1,223,627

4,916,133

4,570,645

Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations

Total liabilities
Net assets
Shareholders' equity
Share capital

495,875

495,875

Capital surplus
Legal capital surplus

400,875

400,875

Total capital surplus

400,875

400,875

Retained earnings
Legal retained earnings

23,75023,750

Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings

690,000

690,000

6,297,694

6,398,357

7,011,444

7,112,107

Treasury shares(1,826,582)(1,826,582)

Total shareholders' equity

6,081,612

6,182,2756,081,612

6,182,275

10,997,746

10,752,921

Total net assets
Total liabilities and net assets

4Non-consolidated statements of income(Thousands of yen)

Net sales
Cost of sales

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

8,523,354

7,861,969

992,486
4,682,462

770,451
4,684,874

57,083
7,090

27,796
7,736

5,739,123

5,490,859

179,000
770,451

96,612
891,412

4,789,671

4,502,833

Gross profit

3,733,682

3,359,135

Selling, general and administrative expenses

2,539,277

2,437,919

Operating profit

1,194,405

921,216

Beginning finished goods inventory
Cost of products manufactured
Cost of purchased goods
Cost of construction by the outside order
Total
Transfer to other accountEnding finished goods inventory
Total cost of sales

Non-operating income
Interest income

00

Compensation income
Subsidy income

1,507
16,459843
36,072

Other

2,369

2,907

Total non-operating income

20,33639,822

4,551
82

3,807
6

Non-operating expenses
Interest expenses
OtherTotal non-operating expenses

4,633

3,813

1,210,107

957,225

18,997707

Office transfer related cost–

11,767

Total extraordinary losses

18,997

12,474

Profit before income taxes

1,191,110

944,750

Income taxes - current
Income taxes - deferred

322,040
9,523

241,502
28,016

Total income taxes

331,563269,518

Profit859,547

675,231

Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets

5Non-consolidated statements of changes in equity
Fiscal year ended March 31, 2020
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of period495,875

Legal capitalsurplus

Total capitalsurplus

Legal retained
earnings

400,875

400,875

23,750Retainedearnings
brought
forwardGeneralreserve
690,000

Total retained
earnings

5,983,988

6,697,738

Dividends of surplus(545,840)(545,840)

Profit859,547

859,547

Changes during period

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

––––

–

313,706

313,706

495,875

400,875

400,875

23,750690,000

6,297,694

7,011,444

Shareholders' equity
Total
shareholders'equityTreasury
sharesBalance at beginning of period(1,826,582)

Total net assets

5,767,905

5,767,905

Dividends of surplus(545,840)(545,840)

Profit859,547

859,547

Changes during period

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period––

313,706

313,706(1,826,582)

6,081,612

6,081,612

6

Fiscal year ended March 31, 2021
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of period

495,875

Legal capitalsurplus

Total capitalsurplus

Legal retained
earnings

400,875

400,875

23,750Retainedearnings
brought
forwardGeneralreserve
690,000

Total retained
earnings

6,297,694

7,011,444

Dividends of surplus(574,568)(574,568)

Profit675,231675,231

Changes during period

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period–––––

100,663

100,663495,875

400,875

400,875

23,750690,000

6,398,357

7,112,107

Shareholders' equity
Total
shareholders'equity

TreasurysharesBalance at beginning of period(1,826,582)

Total net assets

6,081,612

6,081,612

Dividends of surplus(574,568)(574,568)

Profit675,231

675,231

Changes during period

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period––

100,663

100,663(1,826,582)

6,182,275

6,182,2757

Non-consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

1,191,110

944,750

253,1786

256,517(5)–(0)

179,346(0)Interest expenses
Decrease (increase) in trade receivables

4,551(132,243)

3,807
138,703

Decrease (increase) in inventories
Increase (decrease) in trade payables

326,411
129,657(248,458)(8,740)

Office transfer related cost
Loss on retirement of non-current assets–
18,997

11,767707

Subsidy income
Decrease (increase) in accounts receivable - other(16,459)(51,102)(36,072)
31,808

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses(62,039)(692)7,389(266,186)

Decrease/increase in consumption taxes receivable/payable
Other, net

78,733(54,075)(82,700)
6,228

1,686,034

938,8620(4,558)0(3,692)

Income taxes paid
Subsidies received(288,316)
43,745(325,998)–

Net cash provided by (used in) operating activities

1,436,905

609,170

Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for sales allowanceInterest and dividend income

SubtotalInterest and dividends received
Interest paid

Cash flows from investing activities
Purchase of property, plant and equipment(162,262)(308,098)

Purchase of intangible assets
Payments of guarantee deposits(6,900)–(3,949)(733)

Proceeds from refund of guarantee deposits
Payments for asset retirement obligations

44,467(35,800)

874–

Other, net

(269)

–

(160,764)(311,906)

Proceeds from long-term borrowings
Repayments of long-term borrowings

600,000(873,998)

800,000(908,031)

Dividends paid
Net increase (decrease) in short-term borrowings(546,127)(300,000)(574,884)
200,000

Net cash provided by (used in) investing activities
Cash flows from financing activities

Repayments of lease obligations
Net cash provided by (used in) financing activities(8,220)(9,105)(1,128,346)(492,021)

Net increase (decrease) in cash and cash equivalents

147,795(194,757)

Cash and cash equivalents at beginning of period

2,217,605

2,365,400

Cash and cash equivalents at end of period

2,365,400

2,170,643

8