Summary Report on Financial Results for the Second Quarter of the Year Ending March 2018
(Japan GAAP)
October 31st, 2017
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
Scheduled date for filing the quarterly report:
November 9th, 2017
Scheduled date for commencement of dividend payment:
December 4th, 2017
Supplementary material development:
None
Financial results meeting:None(Amounts less than one million yen are rounded down)(The number with parenthesis shows negative figure)1. Consolidated financial results for the Second quarter of the year ending March 2018 (April 1st, 2017 throughSeptember 30th, 2017)(1) Consolidated operating results (cumulative)(% represents increases or decreases from the previous year)
Ordinary
Profit attributable to
Net sales
Operating Profit
Profitowners of parent
millionmillionmillionmillion
%
%
%
%
yen
yen
yen
yen
Second quarter of the58,855
8.8
6,031
14.0
6,185
26.1
5,068
8.4
year ending March 2018
Second quarter of the54,072
1.9
5,289
15.9
4,906
0.2
4,676
33.9
year ended March 2017
(Note) Comprehensive income
Second quarter of the year ending March 2018:5,335 million yen / 4.6 %Second quarter of the year ended March 2017: 5,102 million yen / 55.2 %Earnings
per shareyen

Diluted earnings
per shareyen

333.09―306.08―

Second quarter of theyear ending March 2018
Second quarter of theyear ended March 2017(2) Consolidated financial situation

million yen

million yen

Shareholders'equity ratio％

Second quarter of theyear ending March 2018

145,291

109,78175.6

7,214.33

Year ended March 2017

146,009

105,97372.6

6,964.31

Total assets(Reference) Shareholders' equity:
Second quarter of the year ending March 2018:Year ended March 2017:

Net assets

109,781 million yen
105,973 million yen-1-

Net assets
per shareyen2. Dividends
End of thefirst quarteryen

Annual Dividends per share
End of the
End of the
End of the term
second quarter
third quarter
yen
yen
yen

Annualyen
Year ended
―
60.00
―
100.00160.00March 2017
Year ending―
65.00
March 2018Year ending
March 2018―
90.00
155.00(forecast)(Note) Revisions to recent dividend forecast: None
The detail of second quarter dividend of Year ended March 2017; ordinary dividend 40.00 yen, extra dividend
20.00 yen
The detail of year-end dividend of Year ended March 2017; ordinary dividend 45.00 yen, extra dividend 50.00
yen, commemorative dividend 5.00 yen
The detail of second quarter dividend of Year ending March 2018; ordinary dividend 50.00 yen, extra dividend
15.00 yen
The detail of year-end dividend of Year ending March 2018 (Forecast); ordinary dividend 50.00 yen, extra
dividend 40.00 yen
3. Forecast of consolidated financial results for fiscal year ending March 2018 (April 1st, 2017 through March
31st, 2018)(% represents increase or decrease from the previous year)

millionyen%

millionyen%

Ordinary
Profitmillion%yen

125,000

2.7

12,5003.6

12,500Net sales

Full-year

Operating Profit

2.4

Profit attributable toowners of parent
million
%
yen
8,000

(8.8)

Earnings
per shareyen
525.73(Note) Revisions to recent business forecast: None
Since the Group's 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, the consolidated forecast at the second quarter is not disclosed.

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries involving changes
in the scope of consolidation): None
(2) Application of special accounting methods for the preparation of the consolidated quarterly financial
statements: None
(3) Changes in accounting policies, accounting projections and restatement(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
(4) Number of outstanding shares (common shares)(i) Number of outstanding shares at the end of the period (including treasury shares)
Second quarter of the year ending March 2018: 19,588,000 sharesYear ended March 2017: 19,588,000 shares-2-

(ii) Number of shares of treasury shares at the end of the period:
Second quarter of the year ending March 2018: 4,370,812 sharesYear ended March 2017: 4,371,392 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Second quarter of the year ending March 2018: 15,216,945 shares
Second quarter of the year ended March 2017: 15,278,419 shares* Summary Report on Financial Results for the Second Quarter is not subject to quarterly financial review.
* Explanation about the appropriate use of the forecasts of financial results, and other noteworthy matters
1. 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 variety ofreasons.
2. With respect to the preconditions for the forecast of financial results, please refer to “(3) Explanation about
consolidated earnings forecast” under the “1. Qualitative information about consolidated earnings results
for the quarter under review" section on page 5.

-3-

Contents of the Attached Materials
1. Qualitative information about consolidated earnings results for the quarter under review-----------

5(1) Explanation about consolidated operating results-------------------------------------------------------

5(2) Explanation about consolidated financial situation-----------------------------------------------------

5(3) Explanation about consolidated earnings forecast-------------------------------------------------------

5

2. Consolidated quarterly financial statements and Notes---------------------------------------------------

6--------------------------------------------------------------------

6(2) Consolidated quarterly income statements and consolidated quarterly comprehensive income
statements

8(1) Consolidated quarterly balance sheets

Consolidated quarterly income statements
Second quarter of the consolidated term----------------------------------------------------------------

8

Consolidated quarterly comprehensive income statements
Second quarter of the consolidated term----------------------------------------------------------------(3) Notes to consolidated quarterly financial statement(Notes regarding the premise for going concern)9-----------------------------------------------------

9----------------------------------------------------------

9(Notes when there is a significant fluctuation in the amount of shareholders’ equity)-4-----------------

9

1. Qualitative information about consolidated earnings results for the quarter under review(1) Explanation about consolidated operating results
In the second quarter cumulative period, the Japanese economy is still recovering, but continues to face
uncertainties such as uncertainty in the overseas economies, the impact of the foreign exchange rates
fluctuations, and the influence from the downturn of the economy is a concern. There is still some anxiety
for the future.
In the medical device industry, the remuneration for medical treatments in FY2016 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 58,855 million yen (up 8.8% on a
year-to-year basis), “Operating profit” of 6,031 million yen (up 14.0% on a year-to-year basis), “Ordinary
profit” of 6,185 million yen (up 26.1% on a year-to-year basis), and “Profit attributable to owners of parent”
of 5,068 million yen (up 8.4% on a year-to-year basis) in the second quarter.
A. Physiological diagnostic equipment segment
Consolidated “Net sales” were 16,465 million yen (up 11.5% year-on-year basis) due to the additionof Fukuda Colin Co., Ltd. to the consolidation.
B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment were 3,817 million yen (up 2.6%
year-on-year basis).
C. Medical treatment equipment segment
The business of renting medical equipment for home treatment increased.
As a result, consolidated “Net sales” were 24,481 million yen (up 6.3% 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 14,090 million yen (up 12.2% on a year-to-yearbasis).
(2) Explanation about consolidated financial situation“Total assets” were 145,291 million yen at the end of the second quarter under review, down 717 million
yen from the end of the previous fiscal year.
The main factors are the decrease of 7,556 million yen in “Notes and accounts receivable-trade” despite
the increase of 6,837 million yen in “Cash and deposits”.
“Total liabilities” amounted to 35,509 million yen, down 4,526 million yen from the end of the previous
fiscal year.
The main factor is the decrease of 3,946 million yen in “Notes and accounts payable-trade” and 505
million yen in “Electronically recorded obligations - operating”.
“Net assets” were 109,781 million yen, up 3,808 million yen from the end of the previous fiscal year.
The main factor is the increase of 3,539 million yen in “Retained earnings”.
(3) Explanation about consolidated earnings forecast
Due to the steady sales achievement until the second quarter, there is no change at this moment in theforecast of the financial results for the full fiscal year which we announced on May 12 th, 2017.
The forecasted financial results described in this material are based on information available at the timeof announcement. Actual results may differ from the results projected and presented hereby for a variety ofreasons.

-5-

2. Consolidated quarterly financial statements and Notes(1) Consolidated quarterly balance sheets
Previous fiscal year
(as of March 31st, 2017)
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
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations operating
Short-term loans payable
Current portion of long-term loans
payableIncome taxes payable
Provision for bonuses
Provision for product warranties
Other provision
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Net defined benefit liability
Other provision
Other
Total non-current liabilities
Total liabilities-6-(Million yen)
End of the Second quarter
under review(as of September 30th, 2017)37,381
38,243
1,171
10,090
131
2,053
3,021
(20)
92,072

44,21830,687173
11,807
139
2,207
3,060
(22)
92,27327,7132,288

28,3682,064

9,624
14,370(60)
23,93453,936
146,009

10,005
12,662(82)
22,58553,018145,291

18,736

14,790

6,061

5,556

1,850

1,900

45

45

910
2,503
219
203
4,560
35,090

1,485
2,248
211
101
4,159
30,497

18
2,652
257
2,017
4,945
40,036

2,713
252
2,046
5,012
35,509

Previous fiscal year
(as of March 31st, 2017)
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-7-(Million yen)
End of the Second quarter
under review(as of September 30th, 2017)

4,621
21,696
97,970(19,543)
104,745

4,621
21,696
101,510(19,541)
108,287

1,761

2,022

(192)

(222)

(340)

(305)

1,227

1,494

105,973
146,009109,781145,291

(2) Consolidated quarterly income statements and consolidated quarterly comprehensive income statements
Consolidated quarterly income statements(Second quarter of the consolidated term)

Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on investments in partnership
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
Impairment loss
Loss on valuation of investment
securities
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to owners of parent

Second quarter of theprevious consolidated term(from April 1st, 2016
to September 30th, 2016)
54,07230,54923,522(Million yen)
Second quarter of theconsolidated term(from April 1st, 2017
to September 30th, 2017)58,85533,66625,18918,233

19,157

5,289

6,031

37
88
145
270

28
90
0
66
185

10
635
1
5
652
4,906

21
1
8
31
6,185

2
957
960

6
932
0
939

0
34

9

126

-

160
5,706
858
171
1,029
4,676
4,676

9
7,114
1,825
220
2,046
5,068
5,068

-8-

Consolidated quarterly comprehensive income statements(Second quarter of the consolidated term)

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

Second quarter of theprevious consolidated term(from April 1st, 2016
to September 30th, 2016)
4,676(Million yen)
Second quarter of theconsolidated term(from April 1st, 2017
to September 30th, 2017)
5,068

182

261

149

(29)

94

35

426
5,102

266
5,335

5,102

5,335

(3) Notes to consolidated quarterly financial statement(Notes regarding the premise for going concern)
Not applicable.
(Notes when there is a significant fluctuation in the amount of shareholders’ equity)
Not applicable.

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

-9-