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 Six Months Ended September 30, 2018
(Based on Japanese GAAP)
October 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:
November 1, 2018
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 3, 2018
Yes

Holding of quarterly financial results meeting:

Yes

TEL

06-6231-9917(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Non-consolidated financial results for the six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)(1) Non-consolidated operating results (cumulative)Percentages indicate year-on-year changes

Net sales
Six months ended September 30, 2018
Six months ended September 30, 2017

Millions of yen
4,195
4,234

Operating profit% Millions of yen
(0.9)
705
1.3
833

Earnings per share% Millions of yen(15.3)
703
(2.3)
833

Profit% Millions of yen(15.6)
485
(2.5)
511

%
(5.1)
(18.4)

Diluted earnings per share

Yen
16.26
17.12

Six months ended September 30, 2018
Six months ended September 30, 2017

Ordinary profit

Yen–17.10(2) Non-consolidated financial position
Total assetsNet assets

Millions of yen
10,739
11,137

As of September 30, 2018
As of March 31, 2018

Equity ratio

Millions of yen
6,134
6,694%
57.1
60.1

2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
9.00
10.00

Yen–

Yen
16.00

Yen
25.00

–

12.00

22.00

Year ending March 31, 2019 (Forecast)Total

3. Forecast of non-consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
8,600

Operating profit% Millions of yen
0.2
1,400

Ordinary profit% Millions of yen
(7.0)
1,400

1Profit% Millions of yen
(6.9)
970

Earnings per share%
(4.2)

Yen
32.48

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 September 30, 2018

31,840,000 shares As of March 31, 2018

31,840,000 shares

Number of treasury shares at the end of the period
As of September 30, 2018

2,531,257 shares As of March 31, 2018

1,813,257 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2018

29,862,672 shares Six months ended September 30, 2017229,897,847 shares

Quarterly non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of March 31, 2018

As of September 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

2,368,211
2,749,827

1,933,146
2,588,785

Finished goods
Work in process

742,539
77,225956,119
83,555

Raw materials
Other

410,395
49,566491,929
77,812Allowance for doubtful accounts
Total current assets

(184)

(184)

6,397,581

6,131,163

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

2,236,975

2,192,512

Land
Other, net

1,703,670
453,439

1,703,670
379,166

Total property, plant and equipment

4,394,085

4,275,350

Intangible assets
Investments and other assets

45,961

38,269Deferred tax assets
Other

191,113
137,460

191,113132,315

Allowance for doubtful accounts(29,050)(29,050)

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

3

299,522294,377

4,739,569

4,607,998

11,137,150

10,739,162

(Thousands of yen)
As of March 31, 2018

As of September 30, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade963,255

973,120

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

500,000
547,752

900,000
629,002

Income taxes payable
Accrued expenses

181,886
452,643

206,739
402,318

Provision for bonuses
Other–
405,907762
171,275

Total current liabilities

3,051,444

3,283,218

Non-current liabilities
Long-term loans payable

1,361,838

1,294,212

28,893

27,1001,390,731

1,321,312

4,442,175

4,604,531

Capital stock
Capital surplus

495,875
400,875

495,875
400,875

Retained earnings
Treasury shares

6,619,653(826,588)

6,624,864(1,392,143)

Total shareholders' equity

6,689,814

6,129,471

5,160

5,160

Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Share acquisition rights
Total net assets
Total liabilities and net assets

4

6,694,974

6,134,631

11,137,150

10,739,162

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

Six months ended

September 30, 2017

September 30, 2018

Net sales
Cost of sales

4,234,753
2,052,874

4,195,813
2,172,066

Gross profit

2,181,878

2,023,746

Selling, general and administrative expenses

1,348,427

1,317,812

833,450

705,934

Interest income
Dividend income

65
112

24–

Gain on forfeiture of unclaimed dividends
Compensation income

544
376

277
1,090

Subsidy income
Foreign exchange gains

–781

200
361

Other322

347

2,203

2,300

1,947
200

2,296
2,084–

764

Operating profit
Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Commission fee
Other
Total non-operating expenses

2,147

5,144

833,506

703,090Extraordinary income
Reversal of allowance for doubtful accounts

2,450

–

Gain on sales of investment securities

2,551

–

Total extraordinary income

5,001

–

Loss on retirement of non-current assets
Expenses related to 50th-anniversary commemorative events

39,21185,14537,777–

Total extraordinary losses

124,356

37,777

Profit before income taxes

714,152

665,312

Income taxes

202,442

179,674Profit

511,710

485,638

Ordinary profit

Extraordinary losses

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

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2017

September 30, 2018714,152

665,312106,154(2,697)

149,009–(178)
1,947

(24)
2,296

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(6,413)(198,059)

161,041(301,443)

Increase (decrease) in notes and accounts payable - trade
Loss (gain) on sales of investment securities

103,462(2,551)

24,047–

Increase (decrease) in provision for bonuses
Loss on retirement of non-current assets

22,705
39,211762
37,777

Subsidy income
Increase (decrease) in accounts payable - other–(114,357)(200)(143,351)

5,549
22,449(59,776)(44,489)

Depreciation
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses

Increase (decrease) in accrued expenses
Decrease/increase in consumption taxes receivable/payable
Other, net

15,556(40,559)

Subtotal

706,930

450,403

Interest and dividend income received

140

24(1,963)(174,864)(2,380)(158,820)–

200

530,243

289,427

Purchase of property, plant and equipment
Proceeds from sales of investment securities(532,744)
7,937(97,026)–

Purchase of intangible assets
Other, net(13,667)(4,188)

(975)
7,549

Net cash provided by (used in) investing activities(542,662)(90,453)

Cash flows from financing activities
Proceeds from long-term loans payable

1,389,000

300,000

Repayments of long-term loans payable
Purchase of treasury shares(145,626)(789,000)(286,376)(565,554)

Cash dividends paid
Net increase (decrease) in short-term loans payable(539,293)
50,000(480,315)
400,000

Repayments of lease obligations
Proceeds from disposal of treasury shares(5,727)1,000(1,793)–

Net cash provided by (used in) financing activities(39,647)(634,038)

Interest expenses paid
Income taxes paid
Proceeds from subsidy income
Net cash provided by (used in) operating activities
Cash flows from investing activities

Net increase (decrease) in cash and cash equivalents(52,066)(435,064)

Cash and cash equivalents at beginning of period

2,319,545

2,368,211

Cash and cash equivalents at end of period

2,267,478

1,933,146

6