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, 2017
(Based on Japanese GAAP)
October 31, 2017
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, 2017
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 4, 2017
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, 2017 (from April 1, 2017 to September 30, 2017)(1) Non-consolidated operating results (cumulative)Percentages indicate year-on-year changes

Net sales
Six months ended September 30, 2017
Six months ended September 30, 2016

Millions of yen
4,234
4,180

Operating profit% Millions of yen
1.3
833
3.6853

Earnings per share% Millions of yen
(2.3)
833
3.0854

Profit% Millions of yen
(2.5)
511
2.2
626%
(18.4)
7.5

Diluted earnings per share

Yen
17.12
20.90

Six months ended September 30, 2017
Six months ended September 30, 2016

Ordinary profit

Yen
17.10
20.88(2) Non-consolidated financial position
Total assets

Net assets

Millions of yen
11,053
11,007

As of September 30, 2017
As of March 31, 2017

Equity ratio

Millions of yen
6,461
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 sales
Full 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 September 30, 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 September 30, 2017

1,849,257 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)
Six months ended September 30, 201729,897,847 shares Six months ended September 30, 2016

229,990,743 shares

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

As of September 30, 2017

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

2,267,478
2,732,657

Finished goods
Work in process

674,924
46,185760,118
96,074

Raw materials
Deferred tax assets

266,240
135,011329,217
135,011

Other
Allowance for doubtful accounts

122,276(91)

92,607(91)

6,290,088

6,413,073

Buildings, net
Land718,411
1,703,670

2,277,011
1,703,670

Construction in progress
Other, net

1,866,226
217,578

107,434
356,803

Total property, plant and equipment

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

4,505,887

4,444,920

Intangible assets
Investments and other assets

61,80553,807

Investment securities
Deferred tax assets

7,576
30,037–30,707

Other
Allowance for doubtful accounts

143,913(31,748)

140,292(29,050)

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

3

149,778

141,948

4,717,472

4,640,676

11,007,560

11,053,749

(Thousands of yen)
As of March 31, 2017

As of September 30, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade878,333

988,582

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

450,000
439,952

500,000
747,752

Income taxes payable
Accrued expenses

201,971394,251

224,622400,050

Provision for bonuses
Other–
837,980

22,705248,109

Total current liabilities

3,202,489

3,131,822

Non-current liabilities
Long-term loans payable

500,140

1,435,714

25,38624,312

Other
Total non-current liabilities

525,526

1,460,026

3,728,016

4,591,848

Capital stock
Capital surplus

495,875
505,204

495,875
400,875

Retained earnings
Treasury shares

6,781,789(510,004)

6,402,995(843,004)

Total shareholders' equity

7,272,864

6,456,740

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

6,461,900

11,007,560

11,053,749

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

Six months ended

September 30, 2016

September 30, 2017

Net sales
Cost of sales

4,180,213
1,983,203

4,234,753
2,052,874

Gross profit

2,197,009

2,181,878

Selling, general and administrative expenses

1,343,632

1,348,427

853,377

833,450

Interest income
Dividend income

68104

65112

Gain on forfeiture of unclaimed dividends
Foreign exchange gains

749
–

544
781

Other

2,687

699

Total non-operating income

3,609

2,203

2,160
171

1,947
200

Operating profit
Non-operating income

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

2,332

2,147

854,654

833,506

––

2,450
2,551

Gain on sales of golf memberships

1,650

–

Total extraordinary income

1,650

5,001

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

7,082
–

39,21185,145

Total extraordinary losses

7,082

124,356

Profit before income taxes

849,221714,152

Income taxes

222,289

202,442

Profit626,932

511,710

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

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, 2016

September 30, 2017849,221714,152

Depreciation
Increase (decrease) in allowance for doubtful accounts

90,680(650)

106,154(2,697)

Interest and dividend income
Interest expenses(172)
2,160(178)
1,947

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories

53,150(87,867)(6,413)(198,059)

Increase (decrease) in notes and accounts payable - trade
Loss (gain) on sales of investment securities(6,360)–103,462(2,551)

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

23,701
7,082

22,705
39,211

Loss (gain) on sales of golf club memberships
Surrender value of insurance(1,650)(779)––

Subsidy income
Increase (decrease) in accounts payable - other(90)(140,893)–(114,357)(6,488)64,0095,549
22,449

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

38,10815,556

Subtotal

883,160

706,930

Interest and dividend income received
Interest expenses paid
Income taxes paid
Proceeds from subsidy income

135

140

(2,106)(297,368)(1,963)(174,864)

90–

583,911530,243

Purchase of property, plant and equipment
Proceeds from sales of investment securities(130,732)–(532,744)
7,937

Purchase of intangible assets
Proceeds from sales of golf club memberships(17,667)
5,650(13,667)–

Proceeds from cancellation of insurance funds
Other, net

1,376915–(4,188)Net cash provided by (used in) operating activities
Cash flows from investing activities(140,457)(542,662)

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

Net cash provided by (used in) investing activities–

1,389,000

Repayments of long-term loans payable
Purchase of treasury shares(154,976)–(145,626)(789,000)

Cash dividends paid
Net increase (decrease) in short-term loans payable(270,396)(50,000)(539,293)
50,000(4,475)–(5,727)
1,000

Repayments of lease obligations
Proceeds from disposal of treasury shares(479,848)(39,647)

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities(36,394)(52,066)

Cash and cash equivalents at beginning of period

2,302,435

2,319,545

Cash and cash equivalents at end of period

2,266,040

2,267,478

6