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, 2017
(Based on Japanese GAAP)May 15, 2017
Company name:

DAIKEN MEDICAL CO., LTD.

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

URL

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

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

June 27, 2017
June 27, 2017

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

June 12, 2017
Yes

Holding of 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 year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(1) Non-consolidated operating resultsPercentages indicate year-on-year changes
Net salesYear ended March 31, 2017
Year ended March 31, 2016

Millions of yen
8,399
8,261

Operating profit
%
1.7
2.8

Millions of yen
1,711
1,695

Diluted earnings pershare
Yen
Yen
41.55
41.50
38.45
38.41

Earnings per share
Year ended March 31, 2017
Year ended March 31, 2016

Ordinary profit
%
0.9
4.6

Millions of yen
1,714
1,704

Profit%0.6
4.9

Millions of yen
1,246
1,153%
8.0
5.0

Ordinary profit/total Operating profit/net
assetssales%%%
18.1
16.2
20.4
18.7
18.0
20.5Profit/equity(2) Non-consolidated financial position
Total assets
As of March 31, 2017
As of March 31, 2016

Net assets

Equity ratio

Millions of yen
11,007
10,136

Millions of yen
7,279
6,512

Cash flows fromoperating activities
Millions of yen
1,350
1,294

Cash flows frominvesting activities
Millions of yen(603)(1,316)

Net assets per share%
66.1
64.2

Yen
242.55216.95(3) Non-consolidated cash flows

Year ended March 31, 2017
Year ended March 31, 2016

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yenMillions of yen(729)
2,319
192
2,302

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

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
(Forecast)

Dividend payout Ratio of dividends
Total cashratio
to net assets
dividends (Total) (Non-consolidated)(Non-consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

7.00
7.00

––

9.00
18.00

16.00
25.00

479
749

41.6
60.2

7.8
10.9

–

9.00

–

12.00

21.00161.2

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 sales
Millions of yen
Six months ending
September 30, 2017
Full year

Operating profit% Millions of yen

Ordinary profit% Millions of yen

Profit% Millions of yen

Earnings per share%

Yen

4,250

1.7

710

(16.8)

710(16.9)

420(33.0)

14.00

8,600

2.4

1,550(9.4)

1,550(9.6)

1,030(17.3)

34.34

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:

No
No

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, 2017

31,840,000 shares As of March 31, 2016

31,840,000 shares

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

1,849,257 shares As of March 31, 2016

1,849,257 shares

29,990,743 shares Year ended March 31, 2016

29,990,769 shares

Average number of shares during the period
Year ended March 31, 20172

Non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of March 31, 2016

As of March 31, 2017

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

2,302,435
1,300,562

2,319,545
1,319,400

Accounts receivable - tradeFinished goods

1,484,862
553,000

1,406,596
674,924

Work in process
Raw materials

50,970279,472

46,185266,240

Prepaid expenses
Deferred tax assets

20,598146,210

43,241135,011

Other
Allowance for doubtful accounts

67,892(189)

79,034(91)

6,205,816

6,290,088

Buildings, net
Machinery and equipment, net

746,617
109,731

718,411
88,773Tools, furniture and fixtures, net
Land140,344
1,703,670

114,885
1,703,670

12,430984,143

13,9191,866,226

3,696,938

4,505,887

53,97446,757

Software in progress
Telephone subscription right

9,000
5,103

9,945
5,103

Total intangible assets

68,07761,805

Investments and other assets
Investment securities

5,269

7,576

1111247

247

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

Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
SoftwareInvestments in capital
Claims provable in bankruptcy, claims provable inrehabilitation and otherLong-term prepaid expenses

7,110

3,533

Deferred tax assets
Guarantee deposits

40,08197,64330,037
96,673

Membership
Life insurance funds

25,5009,394

21,5008,797

Long-term accounts receivable - other
Allowance for doubtful accounts

13,150(32,398)

13,150(31,748)

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

3

166,009

149,778

3,931,026

4,717,472

10,136,843

11,007,560

(Thousands of yen)
As of March 31, 2016

As of March 31, 2017

Liabilities
Current liabilities
Notes payable - trade

485,401

449,170

Accounts payable - trade
Short-term loans payable

377,777
400,000

403,747
450,000

Current portion of long-term loans payable
Accounts payable - other289,952
334,945439,952
717,839

Lease obligations
Accrued expenses

8,950
384,571

6,801
394,251

Income taxes payable
Accrued consumption taxes

307,781–

201,971
26,025

Deposits received
Notes payable - facilities

26,25839,74524,67725,415

Other

7,305

62,636

2,662,686

3,202,489

Long-term loans payable
Lease obligations

940,092
4,475

500,140
8,410

Long-term guarantee depositedOther

13,9862,969

14,006
2,969

Total current liabilities
Non-current liabilities

Total non-current liabilities

961,522525,526

3,624,209

3,728,016

495,875

495,875

Capital surplus
Legal capital surplus

400,875

400,875

Other capital surplus

104,329

104,329

Total capital surpluses

505,204

505,204

23,75023,750690,000
5,301,889

690,000
6,068,039

Total liabilities
Net assets
Shareholders' equity
Capital stock

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

6,015,639

6,781,789

Treasury shares

Total retained earnings(510,004)(510,004)

Total shareholders' equity

6,506,714

7,272,864

Valuation difference on available-for-sale securities

(80)

1,520

Total valuation and translation adjustments

(80)

1,520

Valuation and translation adjustments

Subscription rights to shares
Total net assets
Total liabilities and net assets

46,0005,160

6,512,633

7,279,544

10,136,843

11,007,560

Non-consolidated statements of income(Thousands of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017

8,261,416

8,399,605

625,676
3,891,164

553,000
4,168,152

53,9799,527

39,1359,614

4,580,347

4,769,902

82,367553,000

103,601
674,924

3,944,979

3,991,377

Gross profit

4,316,436

4,408,227

Selling, general and administrative expenses

2,620,495

2,696,974

Operating profit

1,695,940

1,711,253

416

130

281
–

217
1,112

Compensation income
Subsidy income

3,060
8,662

997
1,938

Insurance premiums refunded cancellation
Other

–
3,316

780
2,429

Total non-operating income

15,7377,605

6,140

3,942

Non-operating income
Interest income
Dividend income
Gain on forfeiture of unclaimed dividends

Non-operating expenses
Interest expenses
Other1,345–

Total non-operating expenses

7,485

3,942

1,704,192

1,714,916

Gain on sales of golf memberships
Gain on reversal of subscription rights to shares

––

1,650
840

Total extraordinary income

–

2,490

983

15,594

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Loss on cancellation of leases

–

4,201

983

19,795

Profit before income taxes

1,703,208

1,697,610

Income taxes - current
Income taxes - deferred

519,826
30,100431,072
20,536

Total income taxes

549,927451,609

1,153,281

1,246,001

Total extraordinary losses

Profit5

Non-consolidated statements of changes in equity
Fiscal year ended March 31, 2016
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings
Retainedearnings
brought
forwardTotal
retainedearnings

4,628,461

5,342,211

Dividends of surplus(479,852)(479,852)

Profit1,153,281

1,153,281

Capital stock Legal capital Other capital Total capitalsurplussurplussurplus

Balance at beginning of current period

495,875

400,875

104,329505,204

Legalretained
earnings

Generalreserve

23,750690,000

Changes of items during period

Purchase of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

–––––

–

673,428

673,428

495,875

400,875

104,329505,204

23,750690,000

5,301,889

6,015,639

Shareholders' equity

Treasuryshares

Balance at beginning of current period(509,958)

Valuation and translation
adjustments

Subscription
Valuation
Total
rights to
Total
difference on
valuation andsharesshareholders' available-fortranslation
equitysale
adjustments
securities
5,833,331

1,579

1,579

6,000

Total net
assets5,840,911

Changes of items during period
Dividends of surplus
ProfitPurchase of treasury shares(46)(479,852)(479,852)

1,153,281

1,153,281

(46)

(46)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period(1,660)(1,660)(1,660)(46)

673,382(1,660)(1,660)–671,722(510,004)

6,506,714

(80)

(80)

6,000

6,512,633

6

Fiscal year ended March 31, 2017
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings
Retainedearnings
brought
forwardTotal
retainedearnings

5,301,889

6,015,639

Dividends of surplus(479,851)(479,851)

Profit1,246,001

1,246,001

Capital stock Legal capital Other capital Total capitalsurplussurplussurplus

Balance at beginning of current period

495,875

400,875104,329

505,204

Legalretainedearnings

Generalreserve

23,750690,000

Changes of items during period

Purchase of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

–––––

–

766,149

766,149

495,875

400,875

104,329505,204

23,750690,000

6,068,039

6,781,789

Valuation and translation
adjustments

Shareholders' equity

Subscription
Valuation
Total
rights toTotal
difference on
valuation andsharesshareholders' available-fortranslation
equitysale
adjustments
securitiesTreasury
sharesBalance at beginning of current period(510,004)

6,506,714

(80)

(80)

6,000

Total net
assets6,512,633

Changes of items during period
Dividends of surplus(479,851)(479,851)

Profit1,246,001

1,246,001––

Purchase of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

1,601

1,601

(840)

761

–

766,149

1,601

1,601

(840)

766,910(510,004)

7,272,864

1,520

1,520

5,160

7,279,544

7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, 2016

March 31, 2017

1,703,208

1,697,610

183,573346

175,912
(748)

(698)
6,140(347)
3,942

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(112,025)
66,89559,428(103,905)

Increase (decrease) in notes and accounts payable - trade
Loss on retirement of non-current assets(5,677)983(10,259)
15,594

Loss (gain) on sales of golf club memberships
Surrender value of insurance––(1,650)(780)

Subsidy income
Increase (decrease) in accounts payable - other(8,662)(20,517)(1,938)(11,709)

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

41,418(132,487)

9,679
26,862

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

Other, net

17,83347,891

Subtotal

1,740,330

1,905,582

Interest and dividend income received

649

276

(6,221)(448,424)(3,824)(553,619)

8,662

1,938

1,294,996

1,350,353(1,307,672)(7,211)(595,448)(16,663)

–
–

5,650
1,377

(1,316)

1,103(1,316,200)(603,982)

Proceeds from long-term loans payable
Repayments of long-term loans payable

1,200,000(423,124)–(289,952)

Cash dividends paid
Net increase (decrease) in short-term loans payable(479,781)(100,000)(480,359)
50,000

Repayments of lease obligations
Purchase of treasury shares(4,475)(46)(8,950)–Net cash provided by (used in) financing activities

192,573(729,261)

Interest expenses paid
Income taxes paid
Proceeds from subsidy income
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of golf club memberships
Proceeds from cancellation of insurance funds
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Net increase (decrease) in cash and cash equivalents

171,370

17,109Cash and cash equivalents at beginning of period

2,131,065

2,302,435

Cash and cash equivalents at end of period

2,302,435

2,319,545

8