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 Nine Months Ended December 31, 2017
(Based on Japanese GAAP)
January 31, 2018
Company name:
DAIKEN MEDICAL CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

7775
President

URL

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

Inquiries:
General Manager, Business Control Division Kenji Tamamaki
Scheduled date to file Quarterly Securities Report:
February 1, 2018
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

06-6231-9917(Amounts less than one million yen are rounded down)
1. Non-consolidated financial results for the nine months ended December 31, 2017 (from April 1, 2017 to December 31, 2017)(1) Non-consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales
Nine months ended December 31, 2017
Nine months ended December 31, 2016

Millions of yen
6,617
6,365

Operating profit% Millions of yen
4.0
1,278
2.7
1,352

Earnings per share% Millions of yen
(5.4)
1,278
1.7
1,354

Profit% Millions of yen
(5.6)
815
1.3
990%
(17.6)
6.1

Diluted earnings per share

Yen
27.25
33.01

Nine months ended December 31, 2017
Nine months ended December 31, 2016

Ordinary profit

Yen
27.23
32.98

(2) Non-consolidated financial position
Total assets

Net assets

Millions of yen
11,124
11,007

As of December 31, 2017
As of March 31, 2017

Equity ratio

Millions of yen
6,496
7,279%
58.4
66.1

2. Cash dividends
Annual dividends per share

Year ended March 31, 2017
Year ending March 31, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
7.00
9.00

Yen––

Yen
18.00

Yen
25.00

12.00

21.00

Year ending March 31, 2018 (Forecast)Total

3. Forecast of non-consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Percentages indicate year-on-year changes
Net salesFull year

Millions of yen
8,600

Operating profit% Millions of yen
2.4
1,550

Ordinary profit% Millions of yen
(9.4)
1,550

1Profit% Millions of yen
(9.6)
1,030

Earnings per share%(17.3)

Yen
34.34

4. Notes(1) Application of special accounting methods for preparing quarterly non-consolidated financial statements: Yes(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
NoChanges in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2017

31,840,000 shares As of March 31, 2017

31,840,000 shares

Number of treasury shares at the end of the period
As of December 31, 2017

1,837,257 shares As of March 31, 2017

1,849,257 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2017

29,930,277 shares Nine months ended December 31, 2016

2

29,990,743 shares

Quarterly non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of March 31, 2017

As of December 31, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade2,319,545
2,725,996

2,207,770
3,020,080

Finished goods
Work in process

674,924
46,185663,948
65,444

Raw materials
Deferred tax assets

266,240
135,011385,290135,011

OtherAllowance for doubtful accounts122,276(91)

65,274(91)

6,290,088

6,542,728

Buildings, net
Land718,411
1,703,670

2,259,374
1,703,670

Construction in progress
Other, net

1,866,226
217,578

112,523
315,820

Total property, plant and equipment

Total current assets
Non-current assets
Property, plant and equipment

4,505,887

4,391,389

Intangible assets
Investments and other assets

61,80550,853

Investment securities
Deferred tax assets

7,576
30,037–30,707

Other
Allowance for doubtful accounts

143,913(31,748)

137,601(29,050)

Total investments and other assets
Total non-current assets
Total assets

3

149,778

139,258

4,717,472

4,581,501

11,007,560

11,124,229

(Thousands of yen)
As of March 31, 2017

As of December 31, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade878,333

968,036

Short-term loans payable
Current portion of long-term loans payable

450,000
439,952

700,000
547,752

Income taxes payable
Accrued expenses

201,971394,251

119,806
448,891

Provision for bonuses
Other–
837,980

38,119282,212

Total current liabilities

3,202,489

3,104,817

Non-current liabilities
Long-term loans payable

500,140

1,498,776

25,386

23,775

Other
Total non-current liabilities

525,526

1,522,551

3,728,016

4,627,369

Capital stock
Capital surplus

495,875
505,204

495,875
400,875

Retained earnings
Treasury shares

6,781,789(510,004)

6,432,482(837,532)

Total shareholders' equity

7,272,864

6,491,700

1,520

–

1,520

–

Total liabilities
Net assets
Shareholders' equity

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets

45,1605,160

7,279,544

6,496,860

11,007,560

11,124,229

Non-consolidated statements of income (cumulative)(Thousands of yen)
Nine months ended

Nine months ended

December 31, 2016

December 31, 2017

Net sales
Cost of sales

6,365,026
3,005,296

6,617,857
3,307,870

Gross profit

3,359,729

3,309,986

Selling, general and administrative expenses

2,007,603

2,031,377

Operating profit

1,352,125

1,278,608

100
217

97112

Gain on forfeiture of unclaimed dividends
Foreign exchange gains

1,112
513

827
989

Other

3,710

1,207

Total non-operating income

5,654

3,234

3,074
181

3,200287

Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expenses
Other
Total non-operating expenses

3,255

3,487

1,354,525

1,278,355

–
–

2,450
2,551

Gain on sales of golf memberships

1,650

–

Total extraordinary income

1,650

5,001

11,4624,201

60,544––85,145

Ordinary profit
Extraordinary income
Reversal of allowance for doubtful accounts
Gain on sales of investment securities

Extraordinary losses
Loss on retirement of non-current assets
Loss on cancellation of leases
Expenses related to 50th-anniversary commemorative events
Total extraordinary losses

15,663

145,690

1,340,511

1,137,667

Income taxes

350,437

321,933

Profit990,074

815,734

Profit before income taxes

5