Summary Report on Financial Results for the First Quarter of the Year Ending March 2021
(Japan GAAP)
July 31st, 2020
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 filing the quarterly report:
August 7th, 2020
Scheduled date for commencement of dividend payment:
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 First quarter of the year ending March 2021 (April 1st, 2020 through June
30th, 2020)(1) Consolidated operating results (cumulative)(% represents increases or decreases from the previous year)
Ordinary
Profit attributable toNet sales
Operating Profit
Profitowners of parent
millionmillionmillionmillion%%%%yenyenyenyen
First quarter of the year
27,297(4.5)
2,337
(9.9)
2,431(7.3)
1,749
(5.7)
ending March 2021
First quarter of the year
28,595
5.5
2,595
8.0
2,622
(5.9)
1,853
3.4
ended March 2020
(Note) Comprehensive income
First quarter of the year ending March 2021:2,227 million yen / 33.2 %First quarter of the year ended March 2020:1,673 million yen / (8.9) %Earnings
per shareyen

Diluted earnings
per shareyen

115.69―121.82―First quarter of the year
ending March 2021
First quarter of the year
ended March 2020
(2) Consolidated financial situation

million yen

million yen

Shareholders'equity ratio%First quarter of the yearending March 2021

165,106

125,05875.7

8,271.42

Year ended March 2020

168,742

124,42773.7

8,229.96

Total assets(Reference) Shareholders' equity:
First quarter of the year ending March 2021:
Year ended March 2020:

Net assets

125,058 million yen
124,427 million yen- 1 -Net assets
per shareyen

2. Dividends
End of thefirst quarteryen

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

Annualyen
Year ended―
75.00―
105.00180.00March 2020
Year ending―March 2021
Year ending
March 2021
75.00
―105.00
180.00(forecast)(Note) Revisions to recent dividend forecast: Yes
The detail of second quarter dividend of Year ended March 2020; ordinary dividend 55.00 yen, extra dividend
15.00 yen, commemorative dividend 5.00 yen
The detail of year-end dividend of Year ended March 2020; 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 2021 (forecast); ordinary dividend 55.00 yen, extra
dividend 20.00 yen
The detail of year-end dividend of Year ending March 2021 (forecast); ordinary dividend 60.00 yen, extra
dividend 45.00 yen
3. Forecast of consolidated financial results for fiscal year ending March 2021 (April 1st, 2020 through March
31st, 2021)(% represents increase or decrease from the previous year)

Net sales

Full-year

Operating Profit

Ordinary Profit

millionyen%

millionyen%

millionyen%

132,000(1.0)

12,800(3.6)

13,000(4.7)

Profit attributableto owners of parent
million%yen
9,100

Earnings
per share(5.3)

yen601.88(Note) Revisions to recent business forecast: YesSince Fukuda Denshi’s (hereinafter, “the Group”) operating results tend to take a peak at the fourth quarterand 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 inthe scope of consolidation): None
(2) Application of special accounting methods for the preparation of the consolidated quarterly financialstatements: 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)
First quarter of the year ending March 2021: 19,588,000 sharesYear ended March 2020: 19,588,000 shares- 2 -(ii) Number of shares of treasury shares at the end of the period:First quarter of the year ending March 2021: 4,468,677 sharesYear ended March 2020: 4,469,117 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
First quarter of the year ending March 2021: 15,119,088 sharesFirst quarter of the year ended March 2020: 15,218,274 shares* Summary Report on Financial Results for the First Quarter is not subject to quarterly financial review.
* Explanation about the appropriate use of the forecasts of financial results, and other noteworthy matters
The projections and other statements with respect to the future included in this material are based on currently
available information and certain assumptions that are judged reasonable by the Group. Please be advised that
the Group does not guarantee in any way the achievement of the projections and other goals in this material
and that cases may occur where the actual results and other situations differ materially from the projections
due to various factors. 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--------

P.05(1) Explanation about consolidated operating results-----------------------------------------------------

P.05(2) Explanation about consolidated financial situation---------------------------------------------------

P.05(3) Explanation about consolidated earnings forecast----------------------------------------------------

P.05

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

P.06------------------------------------------------------------------

P.06(2) Consolidated quarterly income statements and consolidated quarterly comprehensive income
statements

P.08(1) Consolidated quarterly balance sheets

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

P.08

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

P.09--------------------------------------------------

P.09--------------------------------------------------------

P.09(Notes when there is a significant fluctuation in the amount of shareholders’ equity)- 4 --------------P.09

1. Qualitative information about consolidated earnings results for the quarter under review(1) Explanation about consolidated operating results
The Japanese economy during the current consolidated fiscal quarter has sharply deteriorated after theimpact of the spread of COVID-19, and the economic prospects remain uncertain for the time being.
In the medical device industry, though the remuneration for medical treatments in FY2020 has been apositive revision as a whole, medical institutions are still facing huge COVID-19 burden.
In such an environment, the Group posted a consolidated “Net sales” of 27,297 million yen (down
4.5% year-on-year basis), “Operating profit” of 2,337 million yen (down 9.9% year-on-year basis),“Ordinary profit” of 2,431 million yen (down 7.3% year-on-year basis), and “Profit attributable toowners of parent” of 1,749 million yen (down 5.7% year-on-year basis) in the first quarter.
A. Physiological diagnostic equipment segment
The sales of electrocardiographs and IT-related products decreased. As a result, consolidated “Netsales” were 6,259 million yen (down 9.2% year-on-year basis).
B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment were 1,801 million yen (up 3.4% year-onyear basis).
C.

Medical treatment equipment segment
While the sales of pacemakers decreased, the sales of ventilators and the business of renting medical
equipment for home treatment increased. As a result, consolidated “Net sales” were 12,074 million
yen (up 0.8% year-on-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 7,161 million yen (down 10.2% year-on-year basis).

(2) Explanation about consolidated financial situation“Total assets” decreased 3,636 million yen from the end of previous fiscal year to reach 165,106 million
yen. The main factors are the decrease of 8,660 million yen in “Notes and accounts receivable - trade”
despite the increase of 1,748 million yen in “Merchandise and finished goods” and 534 million yen in“Property, plant and equipment”.
“Total liabilities” decreased 4,266 million yen from the end of the previous fiscal year to reach 40,048million yen. The main factor is the decrease of 2,596 million yen in “Notes and accounts payable - trade”
and 1,906 million yen in “Income taxes payable”.
“Net assets” increased 630 million yen from the end of the previous fiscal year to reach 125,058 million
yen. The main factor is the increase of 482 million yen in “Valuation difference on available-for-salesecurities” and 149 million yen in “Retained earnings”.
(3) Explanation about consolidated earnings forecast
For the information about consolidated earnings forecast, please refer to the announcement posted on
July 31st “Notice of the Forecast of the Financial Results and Dividends for the Fiscal Year Ending March2021”.

- 5 -2. Consolidated quarterly financial statements and Notes(1) Consolidated quarterly balance sheets
Previous fiscal year
(as of March 31st, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetaryclaims - operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance 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 borrowings
Income taxes payable
Provision for bonuses
Provision for product warranties
Other provisions
Other
Total current liabilities
Non-current liabilities
Retirement benefit liability
Other provisions
Other
Total non-current liabilities
Total liabilities- 6 -(Million yen)
End of the First quarter
under review(as of June 30th, 2020)

49,11236,37849,457
27,718

1,681

2,102

107
9,553
198
2,559
1,670
(45)
101,215106
11,301
196
2,694
3,054
(35)
96,59536,443
1,731

36,977
1,703

10,13819,228(15)
29,351
67,526
168,742

10,346
19,498(15)
29,82968,510165,106

18,263

15,667

6,081

5,351

1,750
2,361
2,728
124
296
5,766
37,372

1,750
454
1,412
134
80
8,286
33,137

3,438
342
3,160
6,942
44,314

3,451
333
3,125
6,910
40,048

Previous fiscal year
(as of March 31st, 2020)
Net assets
Shareholders' equity
Share capital
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 First quarter
under review(as of June 30th, 2020)

4,621
21,817
118,517(20,358)
124,597

4,62121,817
118,666(20,356)
124,749644

1,127(353)

(380)

(461)

(437)

(169)

309

124,427
168,742

125,058
165,106

(2) Consolidated quarterly income statements and consolidated quarterly comprehensive income statements
Consolidated quarterly income statements(First 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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expensesOrdinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Surrender value of insurance policies
Gain on reversal of foreign currencytranslation adjustment
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

First quarter of theprevious consolidated term(from April 1st, 2019
to June 30th, 2019)28,595
16,26912,326(Million yen)First quarter of theconsolidated term(from April 1st, 2020
to June 30th, 2020)
27,297
14,98912,308

9,730

9,970

2,595

2,337

16
59
32
108

15
67
34
116

9
63
7
81
2,622

9
9
3
22
2,431

0
39

0
253
58

33-

73

313

8

10-

251

8
2,688
672
162
834
1,853
1,853

253
2,491
901
(158)
742
1,749
1,749

- 8 -

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

ProfitOther comprehensive incomeValuation 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

First quarter of theprevious consolidated term(from April 1st, 2019
to June 30th, 2019)
1,853(Million yen)First quarter of theconsolidated term(from April 1st, 2020
to June 30th, 2020)
1,749

(106)

482(89)(27)1423(180)
1,673

478
2,227

1,673

2,227

(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 the official
authoritative version.

- 9 -