Summary Report on Financial Results for Fiscal Year Ended March 2019
(Japan GAAP)May 15th, 2019
Listing: TSE-JASDAQ
Company name: Fukuda Denshi Co., Ltd.
Code No.:

6960 (http://www.fukuda.co.jp)

Representative:

Daijiro Shirai, President & COO

Inquiries:

Haruhiko Honbu, Senior Manager of Accounting & Finance DepartmentTel:+81-3-5684-1558 (main)

Scheduled date for the ordinary general meeting of shareholders:
Scheduled date for commencement of dividend payment:
Scheduled date for filing the securities report:
Supplementary material development:
Financial results meeting:June 27th, 2019
June 28th, 2019
June 27th, 2019
Yes
Yes (for analysts)(Amounts less than one million yen are rounded down)(The number with parenthesis shows negative figure)1. Consolidated financial results for fiscal year ended March 2019 (April 1st, 2018 through March 31st,2019)(1) Consolidated operating results
Net sales
millionyen
Year ended
129,775
March 2019Year ended
128,883
March 2018
(Note)Comprehensive income(% represent increases or decreases from the previous year)
Operating profit

Profit attributable toowners of parent
million%yen%

millionyen%

million
yen

%

0.7

12,6452.5

13,288

4.5

9,577

2.8

5.9

12,334

2.3

12,713

4.2

9,320

6.2

Fiscal year ended March 2019: 8,612 million yen / (12.1)%(4.3)%

Earnings per
share

Ordinary profit

Diluted earnings
per share

Fiscal year ended March 2018: 9,800 million yen /Return on
equityRatio ofordinary profit
to total assets%

Ratio ofoperating profit
to net sales
%

yen
yen
%
Year ended
629.378.2
8.3
March 2019Year ended
612.498.5
8.4
March 2018
(Reference) Profit or loss on equity method investments:
Fiscal year ended March 2019: - million yen
Fiscal year ended March 2018: - million yen

9.7
9.6

(2) Consolidated financial situation
Total assets

Net assets

Shareholders’equity ratio

Net assets
per share

million yen
million yen%
yenYear ended
160,940
119,18374.1
7,831.61
March 2019Year ended
157,518
113,25271.9
7,442.43
March 2018
(Reference) Shareholders’ equity:
Fiscal year ended March 2019: 119,183 million yen Fiscal year ended March 2018: 113,252 million yen-1-(3) Consolidated cash flows statement
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

million yen

million yen

million yen

Cash and cash
equivalents at the endof the year
million yen

13,979(10,648)(2,984)

43,824

17,852(3,780)(2,756)43,357

Year ended
March 2019Year ended
March 2018
2. Dividends

Annual Dividend
Endof End of End of
End ofthethethe first second
the
third
quarter quarter quarter
term
yen
Yen
Year ended
March 2018Year ended
March 2019Year ending
March 2020
(Forecast)

AnnualTotal
Ratio ofdividends Payout ratio dividends to net(for the (consolidated)assetsyear)(consolidated)

yen million yen

%

%

-

65.00

-

105.00170.00

2,598

27.8

2.4

-

70.00

-

105.00175.00

2,674

27.8

2.3

-

75.00

-

100.00175.0028.9(Note)The detail of second quarter dividend of Year ended March 2018: ordinary dividend 50.00 yen, extra dividend 15.00
yen
The detail of year-end dividend of Year ended March 2018: ordinary dividend 60.00 yen, extra dividend 40.00 yen,commemorative dividend 5.00 yen
The detail of second quarter dividend of Year ended March 2019: ordinary dividend 55.00 yen, extra dividend 15.00
yen
The detail of year-end dividend of Year ended March 2019: ordinary dividend 60.00 yen, extra dividend 40.00 yen,commemorative dividend 5.00 yen
The detail of second quarter dividend of Year ending March 2020 (Forecast): ordinary dividend 55.00 yen, extra
dividend 15.00 yen, commemorative dividend 5.00 yen
The detail of year-end dividend of Year ending March 2020 (Forecast): ordinary dividend 60.00 yen, extra dividend
40.00 yen

3. Forecast of consolidated financial results for fiscal year ending March 2020 (April 1st, 2019 throughMarch 31st, 2020)(% represent increases or decreases from the previous year)
Net sales

Full-year

Operating profit

Ordinary profit

Profitattributable toowners ofparentEarnings per
sharemillionyen%

millionyen%

millionyen%

million
yen

%

yen

131,000

0.9

12,7000.4

12,900

(2.9)

9,200

(3.9)

604.54(Note)
Since the Fukuda Denshi Group's(herein after “the Group”) operating results tend to take a peak at the
fourth quarter and it is difficult to give a forecast every six months based on rational calculation, theconsolidated forecast at the second quarter is not disclosed.

-2-

※

Notes

(1) Changes in significant subsidiaries during the current fiscal year: No(2) Changes in accounting policies and procedures(i) Changes in accounting policies associated with revision of accounting standards: None(ii) Changes other than (i) above: None(iii) Changes in accounting projections: None(iv) Restatement: None
(3) Number of outstanding shares (common shares)(i) Number of outstanding shares at the year-end (including “Treasury shares”)
Fiscal year ended March 2019: 19,588,000 sharesFiscal year ended March 2018: 19,588,000 shares(ii) Number of shares of treasury shares at the year-end:
Fiscal year ended March 2019: 4,369,738 sharesFiscal year ended March 2018: 4,370,873 shares(ⅲ) Average number of shares during the period
Fiscal year ended March 2019: 15,217,600 sharesFiscal year ended March 2018: 15,217,049 shares(Reference) Summary of non-consolidated financial results
Non-consolidated financial results for fiscal year ended March 2019 (April 1st, 2018 through March 31st,2019)(1) Non-consolidated operating results

Year ended
March 2019Year ended
March 2018%

71,5700.9

8,586

70,958

1.6

7,472

Operating profit
million%yen

Ordinary profit
million%yen

Profitmillion
yen

%

14.9

11,994

13.0

9,524

7.1

(1.5)

10,613

(0.7)

8,889

(2.8)

yen

Diluted earnings per
share
yen

625.90-584.21-

Earnings per share
Year ended
March 2019Year ended
March 2018(% represent increases or decreases from the previous year)

Net sales
million
yen

-3-

(2)

Non-consolidated financial position
Total assets

Net assets

Shareholders’ equity
ratio%

Net assets per
share
yen

million yen
million yen
Year ended
131,400
92,77770.6
6,096.47
March 2019Year ended
127,751
86,77567.9
5,702.49
March 2018
(Reference) Shareholders’ equity:
Fiscal year ended March 2019: 92,777 million yen
Fiscal year ended March 2018: 86,775 million yen* These financial statements are not subject to audit procedure.
* Explanation about the appropriate use of the forecasts of financial results, and other noteworthy matters
The forecasted financial results described above are based on information available at the time ofannouncement. Actual results may differ from the results projected and presented hereby for a varietyof reasons.
With respect to the preconditions for the forecast of financial results, please refer to “(4) Forecast of
results for fiscal year ending March 2020” under the “1. Operating results" section on page 8.

-4-Contents of the Attached Materials
1. Operating results--------------------------------------------------------------------------------------------

6(1) Overview of operating results--------------------------------------------------------------------------

6(2) Overview of financial situation------------------------------------------------------------------------

7---------------------------------------------------------------------------------

7(3) Overview of cash flows(4) Forecast of results for fiscal year ending March 2019(5) Business risks----------------------------------------------

8---------------------------------------------------------------------------------------------

9

2. Basic policy on the selection of accounting standards------------------------------------------------

10-----------------------------------------------------------

11----------------------------------------------------------------------------

11

3. Consolidated financial statements and Notes(1) Consolidated balance sheets(2) Consolidated income statements and consolidated comprehensive income statements--------

13----------------------------------------------------

15----------------------------------------------------------------

17(3) Consolidated statements of changes in net assets(4) Consolidated statements of cash flows(5) Notes to Consolidated Financial Statement----------------------------------------------------------(Notes regarding the assumption for going concern)19---------------------------------------------------

19(Changes in the presentation)------------------------------------------------------------------------------

19(Segment information, etc.)--------------------------------------------------------------------------------

19-------------------------------------------------------------------------------------

23(Per share information)(Significant subsequent events)
4. Others---------------------------------------------------------------------------

23--------------------------------------------------------------------------------------------------------

24(1) Changes of directors------------------------------------------------------------------------------------

-5-

24

1. Operating results(1) Overview of operating results(i) Overview of the business for the current consolidated fiscal year

Net sales(million yen)
Operating income(million yen)
Ordinary income(million yen)
Profit attributable toparent company
shareholders(million yen)
Earnings per share(yen)Year ended
March 2018Year ended
March 2019

AmountAmountComparison with the previous year
Rate of change(%)

Change128,883

129,775892

0.7

12,334

12,645310

2.5

12,713

13,288

574

4.5

9,320

9,577

257

2.8

612.49629.3716.88

2.8

Although the Japanese economy has gradually expanded during the current consolidated fiscal year, theslowdown of overseas economy has an effect on the export and the production and uncertainty about the
future still remains.
In the medical device industry, the remuneration for medical treatments in FY2018 has been a negative
revision as a whole. Medical institutions face continuous demands for efficient and high-quality
healthcare.
As a result, the Group posted a consolidated “Net sales” of 129,775 million yen (up 0.7% year-on-yearbasis) for this consolidated fiscal year. “Operating profit” of 12,645 million yen (up 2.5% on a
year-to-year basis), “Ordinary profit” of 13,288 million yen (up 4.5% on a year-to-year basis), and “Profit
attributable to owners of parent” of 9,577 million yen (up 2.8% on a year-to-year basis).
(ii) Overview of each segment for the current consolidated fiscal year
Business segment

Physiologicaldiagnostic equipment
Patient monitoring
equipment
Medical treatment
equipment
Consumables and otherproducts
Total

Comparison with theprevious year
ChangeRate of(millionchangeyen)(%)

Year ended March 2018Year ended March 2019

Amount(millionyen)

Ratio (%)

Amount(millionyen)

Ratio (%)

39,25430.5

38,912

30.0

(342)

(0.9)

9,664

7.5

9,475

7.3

(188)

(2.0)

49,88438.7

50,103

38.6

218

0.4

30,07923.3

31,283

24.1

1,204

4.0

128,883

100.0

129,775

100.0

892

0.7

A. Physiological diagnostic equipment segment
While the sales of electrocardiographs increased, the number of large orders decreased. As aresult, consolidated “Net sales” were 38,912 million yen (down 0.9% year-on-year basis).
B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment were 9,475 million yen (down 2.0%
year-on-year basis).

-6-C. Medical treatment equipment segment
While the sales of pacemakers decreased, the business of renting medical equipment for hometreatment increased. As a result, consolidated “Net sales” were 50,103 million yen (up 0.4% on a
year-to-year basis).
D. Consumables and other products segment
In this segment, we mainly handle recording paper, disposable electrodes, and consumables used
for devices handled in the above segments, as well as maintenance and repair services.
Consolidated “Net sales” for this segment were 31,283 million yen (up 4.0% on a year-to-yearbasis).
(2) Overview of financial situation
Situation of the assets, liabilities and net assets at the consolidated fiscal year ended March 2019.
“Total assets” increased 3,421 million yen from the end of the previous fiscal year to reach 160,940
million yen. The main factors are the increase of 1,573 million yen in “Insurance funds” and 1,332
million yen in “Tools, furniture and fixtures”, despite a decrease of 1,214 million yen in “Merchandiseand finished goods”.
“Total liabilities” decreased 2,509 million yen from the end of the previous fiscal year to reach 41,757
million yen. The main factor is the decrease of 1,700 million yen in “Income taxes payable” and 1,446
million yen in “Electronically recorded obligations-operating”, despite an increase of 1,293 million yen
in “Lease obligations”.
“Net assets” increased 5,931 million yen from the end of the previous fiscal year to reach 119,183
million yen. The main factors are the increase of 6,893 million yen in “Retained earnings”, despite adecrease of 849 million yen in “Valuation difference on available-for-sale securities” at the end ofcurrent period.
(3) Overview of cash flows(ii) Consolidated cash flows
Year ended March2018
Cash flows from operating
activities (million yen)
Cash flows from investing
activities (million yen)
Cash flows from financing
activities (million yen)
Effect of exchange rate changes(million yen)
Increase (decrease) in cash andcash equivalents (million yen)
Net increase (decrease) in cash
and cash equivalents to changes inaccounting period of consolidated
subsidiaries
Cash and cash equivalents at theend of the fiscal year (million
yen)Year ended March
2019

Change17,852

13,979(3,872)(3,780)(10,648)(6,867)(2,756)(2,984)

(228)

40

57

16

11,355404(10,951)

-

63

63

43,357

43,824

467(Cash flows from operating activities)
In the consolidated fiscal year, the “Cash flows from operating activities” were 13,979 million yen,down 3,872 million yen from the previous year. Including “Profit before income taxes” of 13,209
million yen, “Depreciation” of 7,856 million yen.

-7-

(Cash flows from investing activities)
The “Cash flows from investing activities” were minus 10,648 million yen, down 6,867 million yen
from the previous year. Including purchase of “Property, plant and equipment” amounted to 7,940
million yen.
(Cash flows from financing activities)
The “Cash flows from financing activities” were minus 2,984 million yen, down 228 million yen
from the previous year, mainly because of the “Cash dividends paid” of 2,672 million yen.
The “Net increase in cash and cash equivalents to changes in accounting period of consolidated
subsidiaries” was 63 million yen.
As a result, “Cash and cash equivalents at the end of the fiscal year” was 43,824 million yen, up 467
million yen compared to the end of the previous fiscal year.
(Reference) Trends in cash flow indicators

Shareholders’ equity
ratio (%)
Market value-based
shareholders’ equity
ratio (%)
Years needed to repay
debts
Interest coverage ratio

Year ended
March 2015

Year ended
March 2016

Year ended
March 2017

Year ended
March 2018Year ended
March 2019

71.4

72.8

72.6

71.9

74.1

75.5

66.1

66.4

75.5

71.1

0.1

0.2

0.1

0.1

0.1

461.7

422.2

543.7

408.3

301.6

Note: Shareholders’ equity ratio = Shareholders’ equity / Total assets
Market value-based shareholders’ equity ratio = Market capitalization /Total assets
Years needed to repay debts = Interest-bearing debts / Operating cash flows
Interest coverage ratio = Operating cash flows / Interest payments*Each indicator is calculated using consolidated financial data.
*Market capitalization is calculated by multiplying shares closing prices at the end of the fiscal year by
the number of outstanding shares (excluding treasury shares) at the end of the fiscal year.
*Interest-bearing debts represent total debts recorded in the consolidated balance sheets on whichinterest is paid.
*For interest payments, data on interest expenses in the consolidated cash flow statement are used.
(4) Forecast of results for fiscal year ending March 2020

Net sales(million yen)
Operating profit(million yen)
Ordinary profit(million yen)
Profit attributable toowners of parent(million yen)
Earnings per share(yen)Year ended
March 2019Year ending
March 2020

AmountAmountComparison with the previous year
Rate of change(%)

Change129,775

131,000

1,224

0.9

12,645

12,70054

0.4

13,28812,900

(388)

(2.9)

9,577

9,200

(377)

(3.9)

629.37604.54(24.83)

(3.9)

-8-

Regarding the future of Japan’s economy, it is expected to recover gradually and continuously. The
Group inspired by our corporate philosophy, remain dedicated to contribute to medical progress andhealthcare in general in accordance with our social mission.
The Group expects a consolidated “Net sales” of 131,000 million yen, consolidated “Operating profit”
of 12,700 million yen, consolidated “Ordinary profit” of 12,900 million yen, and consolidated “Profit
attributable to owners of parent” of 9,200 million yen for the fiscal year ending March 2020.
Forecast shown in this material are just an outlook judged or assumed based on the information available
at the moment, changes will be promptly disclosed when necessary.
(5) Business risks(i) Effect of medical administration
The Japanese Government has been pushing forward with its policies of improving the quality of
medical care and curtailing the medical costs, and the remuneration for medical services, and theofficial reimbursement prices for drugs and specific insurance medical materials are revised every
two years. Changes in the governmental health care policies may lead to intensified competition
within the market and lowered sales prices, thus adversely affecting the operating results andfinancial standing of the Group.
(ii) Legal regulations
The manufacture and sales of medical equipment are subject to regulations prescribed in the
Pharmaceutical Affairs Law, and it may take a certain period of time for a new medical equipment to
be investigated and finally approved for sale. In addition, some medical equipment requires clinical
trials, thus taking a long period of time before it is launched in the market.
If the current regulations are revised, new ones are introduced, or any other unpredictable
regulatory change is made in the future, it is likely that this will adversely affect the operating results
and financial standing of the Group.
(iii) High dependence on certain business partners with which continuation of transactions is unsure
The Group imports and sells ventilators, pacemakers, defibrillators and other devices andequipment. If any problem arises that will make it impossible to continue stable transactions with theexporters, the operating results and financial standing of the Group will be adversely affected. To
prevent this, sufficient care has been taken not to depend too heavily on a few specific companies forthe supply of those equipment.
(iv) Product quality
The Group manufactures the products under a rigorous quality control system that is strictly in
conformance with the international standards including ISO. If any quality problem arises due tounforeseen failure or defect of a product, suspension of sale and recall of such product may beordered by the authorities concerned, adversely affecting the operating results and financial standingof the Group.
(v) Risks accompanying overseas businesses
The Group not only supplies products to distributors overseas, but also has its own overseas sales,development and production bases. Hence, it is possible that unforeseen changes to laws andregulations or new ones are introduced in foreign countries, as well as terrorist acts, natural disasters,
or other incidents could adversely affect the Group’s business performance and financial position.
(vi) Fluctuations in foreign exchange rates and others
The Group has subsidiaries in foreign countries and is procuring and importing products and raw
materials from overseas companies. In case, rapid fluctuations in foreign exchange rates could
adversely affect the Group’s business performance and financial position.
(vii) Impairment accounting
In case that “Impairment losses” is needed to book for the assets of the Group, it is possible that it
could adversely affect the Group’s business performance and financial position.

-9-

(viii) Effects to the Group from tremendous disaster
The Group has domestic and oversea bases; if an earthquake, electric-power shortages or any otherincidents occurs, it is possible that it could adversely affect the Group’s business performance andfinancial position.
2. Basic policy on the selection of accounting standards
The Group decided to adopt the Japanese accounting standards for the time being, because the Group’sbusiness is based chiefly in Japan. The Group will consider implementing the IFRS (International
Financial Reporting Standards) in an appropriate manner in light of the movement toward its adaption
both at home and abroad.

- 10 -

3. Consolidated financial statements(1) Consolidated balance sheets(Million yen)Previous fiscal year
(as of March 31st, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation andimpairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation andimpairment loss
Machinery, equipment andvehicles, net
Tools, furniture and fixtures
Accumulated depreciation andimpairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation andimpairment loss
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Insurance funds
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 11 -

Current fiscal year
(as of March 31st, 2019)46,43939,202249
10,411
112
2,480
1,565
(41)
100,420

46,85738,752
145
9,197
104
2,632
1,769
(51)
99,406

12,297

11,182(6,690)(5,879)

5,606
1,357

5,303
1,435

(938)

(994)

418

441

34,31836,481(22,021)(22,851)

12,297
9,347
1,711

13,6299,017
3,177(1,237)(1,460)473
300
28,444
2,011

1,717
1,220
31,3291,601

10,604
2,791
11,702
1,598(55)
26,64257,098
157,518

10,436
3,224
13,2761,682(17)28,602
61,533160,940

(Million yen)Previous fiscal year
(as of March 31st, 2018)
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations operating
Short-term loans payable
Current portion of long-term loans
payableLease obligations
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Lease obligations
Provision for directors' retirement
benefits
Provision for management board
incentive plan trust
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on
available-for-sale securities
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Total net assets
Total liabilities and net assets- 12 -

Current fiscal year
(as of March 31st, 2019)20,213

19,739

6,512

5,065

1,850

1,750

22

-

179
2,842
2,368
204
287
4,832
39,315

267
1,141
2,484
239
143
4,616
35,448

838

2,043

244

210

48

73

2,690
1,129
4,951
44,266

2,885
1,096
6,309
41,757

4,621
21,696
104,768(19,542)
111,544

4,621
21,696111,662(19,540)
118,439

2,120

1,270

(161)

(235)

(251)

(291)

1,708

743

113,252
157,518

119,183
160,940

(2) Consolidated income statements and consolidated comprehensive income statements
Consolidated income statements(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Commission for insurance office work
Gain on investments in partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on investments in partnership
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Surrender value of insurance
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on valuation of investment
securities
Office transfer expenses
Building demolition cost
Loss on litigation
Loss on liquidation of subsidiaries
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to owners of parent

Previous fiscal year
(from April 1st, 2017
to March 31st, 2018)
128,883
77,102
51,781

Current fiscal year
(from April 1st, 2018
to March 31st, 2019)
129,775
77,69852,07739,44639,432

12,334

12,645

45
142
30
138
225
581

47
377
35
41
28
179
709

43
109
14
9
25
202
12,71346
8
10
65
13,288

8
932
0
941

137
550
688

32
49

113
16

-

499

36
26
29
76
87
339
13,315
4,343
(348)
3,995
9,320
9,320

128
9
767
13,209
3,745
(113)
3,631
9,577
9,577

- 13 -

Consolidated comprehensive income statements(Million yen)

ProfitOther comprehensive income
Valuation difference on
available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit
plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent

Previous fiscal year
(from April 1st, 2017
to March 31st, 2018)
9,320

Current fiscal year
(from April 1st, 2018
to March 31st, 2019)
9,577

359

(849)

31

(74)

89

(40)

480
9,800

(964)
8,612

9,800

8,612

- 14 -

(3) Consolidated statements of changes in net assets
Previous fiscal year (from April 1st, 2017 to March 31st, 2018)(Million yen)

Shareholders' equity
Capitalstock
Balance at beginning of current
periodChanges of items during period

Capitalsurplus

4,621

Retainedearnings

21,696

Dividends of surplus
Profit attributable to owners ofparent97,970(19,543)

104,745(2,521)(2,521)

9,320

9,320

Purchase of treasury shares
Disposal of treasury shares
Effect of change In closing
datesof
consolidated
subsidiaries
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

Totalshareholders'equityTreasuryshares

(2)

(2)

3

3
-

-

-

6,798

1

6,799

4,621

21,696

104,768(19,542)

111,544

Accumulated other comprehensive income

Balance at beginning of current
periodChanges of items during period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

1,761

(192)

Remeasureme
nts of defined
benefit plans

(340)

Total
accumulated
othercomprehensive
income1,227

Total net
assets105,973(2,521)Dividends of surplus
Profit attributable to owners of

9,320

parentPurchase of treasury shares(2)

Disposal of treasury shares
Effect of change In closing
datesof
consolidated
subsidiaries
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

3
359

31

89

480

480

359

31

89

480

7,279

2,120

(161)

(251)

1,708

113,252- 15 -

Current fiscal year (from April 1st, 2018 to March 31st, 2019)(Million yen)

Shareholders' equity
Capitalstock
Balance at beginning of current
periodCapitalsurplus

4,621

Retainedearnings

21,696

Total
shareholders'equityTreasuryshares104,768(19,542)

111,544

Changes of items during period
Dividends of surplus
Profit attributable to owners ofparent(2,674)(2,674)

9,577

9,577

Purchase of treasury shares

(1)

(1)

Disposal of treasury shares22

Effect of change In closing
datesof
consolidated
subsidiaries
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

(9)

(9)

-

-

6,893

1

6,895

4,621

21,696111,662(19,540)

118,439

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

2,120

(161)

Remeasureme
nts of defined
benefit plans

(251)

Total
accumulated
othercomprehensive
income1,708

Total net
assets113,252

Changes of items during period(2,674)

Dividends of surplus
Profit attributable to owners of

9,577

parentPurchase of treasury shares(1)

Disposal of treasury shares

2

Effect of change In closing
datesof
consolidated
subsidiaries
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

(9)
(849)

(74)

(40)

(964)

(964)

(849)

(74)

(40)

(964)

5,931

1,270

(235)

(291)

743

119,183- 16 -

(4) Consolidated statements of cash flows(Million yen)
Current fiscal year
(from April 1st, 2018
to March 31st, 2019)

Previous fiscal year
(from April 1st, 2017
to March 31st, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for
doubtful accounts
Increase (decrease) in provision forbonuses
Increase (decrease) in provision forbonuses for directors (and other officers)
Increase (decrease) in provision for
product warranties
Increase (decrease) in retirement benefit
liability
Increase(decrease) in provision for
management board incentive plan trust
Increase (decrease) in provision for
retirement benefits for directors (andother officers)
Interest and dividend income
Interest expenses
Building demolition cost
Loss (gain) on sales of non-current
assetsLoss (gain) on investments inpartnership
Loss (gain) on valuation of investment
securities
Loss (gain) on cancellation of insurance
contract
Decrease (increase) in notes andaccounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes andaccounts payable-trade
Increase (decrease) in accrued
consumption taxes
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating
activities- 17 -

13,315
7,459
49

13,209
7,856
16

16

(27)

(134)

115

1

34

68

(134)

69

328

20

25

14

(34)

(188)
43
26

(424)
46
128

(8)

(24)

(123)

(28)

-

499

(932)

(550)

(969)

234

(727)

975

1,563

(2,752)

(57)

(72)

661
20,168187(43)(2,460)(404)
19,017423(46)(5,415)

17,852

13,979(Million yen)
Current fiscal year
(from April 1st, 2018
to March 31st, 2019)

Previous fiscal year
(from April 1st, 2017
to March 31st, 2018)
Cash flows from investing activities
Decrease (increase) in time deposits
Payment of loans receivable
Purchase of property, plant andequipment
Purchase of intangible assets
Purchase of short-term and long-term
investment securities
Proceeds from sales of short-term andlong-term investment securities
Purchase of insurance funds
Proceeds from maturity of insurance
funds
Proceeds from distribution of investment
in partnerships
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termloans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash
and cash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodNet increase (decrease) in cash and cash
equivalents to changes in accounting
period of consolidated subsidiaries
Cash and cash equivalents at end of period- 18 -

2,297
-

49
25

(6,887)(7,940)

(594)

(443)

(1,007)(2,006)

1,500

610

(2,298)(2,266)

3,264

1,242

221

27

(276)

54

(3,780)(10,648)

-

(100)

(41)
(2)
(2,520)
(192)

(22)
(1)
(2,672)(188)(2,756)(2,984)40

57

11,355404

32,001

43,357-

63

43,357

43,824

(5) Notes to Consolidated Financial Statement(Notes regarding the assumption for going concern)
Not applicable(Changes in presentation)(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
The Group has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(Accounting Standards Board of Japan (ASBJ) Statement No. 28 issued on February 16th, 2018) from thefirst quarter of the current fiscal year.
Accordingly, the Group presents 2,791 million yen in “Deferred tax assets” under “Investments andother assets” including 1,861 million yen from “Deferred tax assets” under “Current assets”.
(Consolidated state of income)As “Loss on cancellation of leases”, which had been included in “Other” under “Non-operating
expenses”, increased financial materiality in the previous consolidated fiscal year, it is posted separatelyfrom the beginning of this fiscal year. In order to reflect this change in reporting method, the Group has
implemented the reclassification in the consolidated financial statements from the previous consolidated
fiscal year.
As a result, 34 million yen in “Other” under “Non-operating expenses” recorded in the previous
consolidated fiscal year is adjusted to “Loss on cancellation of leases” of 9 million yen and “Other” of 25
million yen.
(Consolidated statements of cash flows)“Building demolition cost”, which had been included in “Other” under “Cash flows from operating
activities”, increased financial materiality in the previous consolidated fiscal year, so beginning from thisyear it is posted separately, In order to reflect this change in reporting method, the Group has
implemented the reclassification in the consolidated financial statements from the previous consolidated
fiscal year.
As a result 687 million yen in “Other” under “Cash flows from operating activities” recorded in theprevious consolidated fiscal year is adjusted to “Building demolition cost” of 26 million yen and “Other”
of 661 million yen.
(Segment information, etc.)
a. Segment information
1. Reportable Segments
The reportable segments of the Group are the constituent units of the Group for which separate
financial information can be obtained, and they are the subject of regular examinations by the Boardof Directors aimed at helping the board to decide the allocation of management resources andevaluate the performance of the Group.
The Group has set up divisions for each product and service in the corporate headquarters, andeach of the divisions formulates comprehensive strategies for the product or service it handles, anddevelops its own business activities.
The Group has 4 reportable segments based on our headquarter divisions which are “Physiologicaldiagnostic equipment segment”, “Patient monitoring equipment segment”, “Medical treatment
equipment segment”, and “Consumables and other products segment”.
In the “Physiological diagnostic equipment segment”, we mainly handle electrocardiographs,
ultrasound diagnostic imaging systems and blood-cell counters. In the “Patient monitoring
equipment segment”, we handle patient monitors. In the “Medical treatment equipment segment”,
mainly handle defibrillators, ventilators, pacemakers, catheters, and business of renting medical- 19 -

equipment for home treatment. In the “Consumables and other products segment”, we mainly handle
consumables used for devices handled by the above segments, as well as maintenance and repair
services.
2. Methods to calculate the sales, gains (or losses), assets, liabilities and other numbers of thereportable segments
The accounting policies for the “Reportable Segments” are basically the same as the accounting
policies used to produce the consolidated financial statements.
Reported segment profit is based on the amount of “Operating profit”.
3. Information regarding sales, gains (or losses), assets, liabilities and other amounts by reportablesegments(i) Previous fiscal year

(from April 1st, 2017 to March 31st, 2018)（Million yen)

Reporting Segments
Total

Adjustments*1

Consolidated
financialstatements*2

30,079128,883-

128,883

-

-

-

-

-

9,664

49,88430,079128,883-

128,883

2,504

765

6,230

2,834

12,334-

12,334

21,7906,773

38,60916,86884,04173,477

157,518

636

156

6,180

486

7,459

-

7,459

Physiologicaldiagnostic
equipment

Patient
monitoring
equipment

Medicaltreatment
equipment

Consumables
and otherproducts

39,254

9,664

49,884--

39,254

Net sales
Sales toexternalcustomers
Internal sales
or transfers

Total
Segment profit
Segment
assetsOther items
Depreciation

Increase in
Property, plant
594
146
6,702
453
7,896
and equipment
and intangible
assets
*1. Adjustment of segment assets of 73,477 million yen include extra investment funds (cash etc.), long-term
investments (“Investment securities” and etc.) which are not allocated to each reportable segments*2. Segment profit equals to “Operating profit” of consolidated financial statements.

- 20 -

7,896

(ii) Current fiscal year

（Million yen)
Consolidated
Adjustments
financial*1statements*2(from April 1st, 2018 to March 31st, 2019)
Reporting Segments

Physiologicaldiagnostic
equipment

Patient
monitoring
equipment

Medicaltreatment
equipment

Consumables
and otherproducts

38,912

9,475

50,10331,283

129,775-

129,775

Total

Net sales
Sales toexternalcustomers
Internal sales
or transfers
Total

-

-

-

-

-

-

-

38,912

9,475

50,10331,283

129,775-

129,775

Segment profit

2,684

780

6,608

2,572

12,645-

12,645

21,273

6,538

39,381

17,88585,07875,861

160,940

620

151

6,585

499

7,856

-

7,856

Segment
assetsOther items
Depreciation

Increase in
Property, plant
1,195
291
8,470
960
10,917and equipment
and intangible
assets
*1. Adjustment of segment assets of 75,861 million yen include extra investment funds (cash etc.), long-term
investments (“Investment securities” and etc.) which are not allocated to each reportable segments*2. Segment profit equals to “Operating profit” of consolidated financial statements.

b. Related Information(i) Previous fiscal year (from April 1st, 2017 to March 31st, 2018)
1. Information about each products and services
Information about each products and services is omitted, as categories of products and services are
identical to segment information.
2. Information by geographical area
(1) Sales
Information about “Sales” is omitted because our domestic “Sales” accounted for more than 90%
of consolidated “Sales”.
(2) Property, plant and equipment
Information about “Property, plant and equipment” is omitted because domestic “Property, plantand equipment” accounted for more than 90 % of “Property, plant and equipment” of consolidated“Property, plant and equipment ".
3. Information by each major customer
Information about each major customer is omitted because “Sales” for each major customer
accounted for less than 10 % of consolidated “Sales”.

- 21 -

10,917

(ii) Current fiscal year (from April 1st, 2018 to March 31st, 2019)
1. Information about each products and services
Information about each products and services is omitted, as categories of products and services are
identical to segment information.
2. Information by geographical area
(1) Sales
Information about “Sales” is omitted because our domestic “Sales” accounted for more than 90%
of consolidated “Sales”.
(2) Property, plant and equipment
Information about “Property, plant and equipment” is omitted because domestic “Property, plantand equipment” accounted for more than 90 % of “Property, plant and equipment” of consolidated“Property, plant and equipment”.
3. Information by each major customer
Information about each major customer is omitted because “Sales” for each major customer
accounted for less than 10 % of consolidated “Sales”.
c. Information about impairment loss for noncurrent assets by reportable segments（Million yen)(i) Previous fiscal year (from April 1st, 2017 to March 31st, 2018)

Impairment
loss

Physiologicaldiagnostic
equipment

Patient
monitoring
equipment

Medicaltreatment
equipment

Consumables
and otherproducts

15

3

19

11

Total
-

49

（Million yen)(ii) Current fiscal year (from April 1st, 2018 to March 31st, 2019)

Impairment
loss

Elimination/ Corporate

Physiologicaldiagnostic
equipment

Patient
monitoring
equipment

Medicaltreatment
equipment

Consumables
and otherproducts

Elimination/ Corporate

Total

4

1

5

3

1

16

d. Information about amortization and depreciation expense on goodwill of each reportable segment(i) Previous fiscal year (from April 1st, 2017 to March 31st, 2018)
Not applicable(ii) Current fiscal year (from April 1st, 2018 to March 31st, 2019)
Not applicablee. Information about gain on negative goodwill of each reportable segment(i) Previous fiscal year (from April 1st, 2017 to March 31st, 2018)
Not applicable(ii) Current fiscal year (from April 1st, 2018 to March 31st, 2019)
Not applicable- 22 -

(Per share information)
Previous fiscal year

Current fiscal year

(from April 1st, 2017
to March 31st, 2018)(from April 1st, 2018
to March 31st, 2019)

Net assets per share

7,442.43 yen

7,831.61 yen

Earnings per share

612.49 yen

629.37 yen

Not stated, as there is no potential
dilution.

Not stated, as there is no potential
dilution.

Fully diluted earnings per
share

Note: (i) The shares of Trust & Custody Services Bank, Ltd. owns are included in the number of our“Treasury share” (65 thousand shares at the start of the fiscal year and 64 thousand shares at the end of
the fiscal year), which is excluded from the “Number of shares at the end of the current fiscal year”,
which is used to calculate the “Net assets per share”.
It is also included in the number of our “Treasury share” (65 thousand shares at the start of the fiscal
year and 64 thousand shares at the end of the fiscal year), which is excluded from the calculation of“Average number of shares during the period”, which is used to calculate the “Net income per share”.
(ii) The basis for calculation of earnings per share:
Item

Previous fiscal year

Current fiscal year

(from April 1st, 2017
to March 31st, 2018)(from April 1st, 2018
to March 31st, 2019)

Profit attributable to parent
company shareholders(million yen)Amount not belonging toordinary shareholders (million
yen)Profit attributable to parent
company shareholders in
relation to common shares(million yen)
Average number of shares
during the fiscal year (1,000
shares)(Significant subsequent events)
Not applicable- 23 -

9,320

9,577

-

-

9,320

9,577

15,217

15,217

4. Others(1)Changes of directors(i) Representative Director
Not applicable(ii) Other directors
・New director candidate
Director: Mr. Yukio Sato
*Mr. Yukio Sato is an Outside Director as stipulated in article 2(15) of the Companies Act.
・New Auditor candidates
Statutory Auditor (permanent): Mr. Yukio Nakagawa
・Directors to retire
Statutory Auditor (permanent): Mr. Junzo Fujiwara
Statutory Auditor (part-time): Mr. Isamu Suzuki
・Effective from
June 27th, 2019

* This English translation is for reference purposes only. The original Japanese version will prevail as theofficial authoritative version.

- 24 -