Summary Report on Financial Results for the Second Quarter of the Year Ending March 2015
（Japan GAAP）
October 31st, 2014
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 10th, 2014
Scheduled date for commencement of dividend payment:
December 8th, 2014
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 2015 (April 1st, 2014 throughSeptember 30th, 2014)(1) Consolidated operating results (cumulative)(% represents increases or decreases from the previous year)
Net sales
Operating income
Ordinary income
Net income
millionmillionmillionmillion
%
%
%
%
yen
yen
yen
yen
Second quarter of the47,8741.3
4,535(12.5)
4,940
(6.5)
2,922
(12.7)
year ending March 2015
Second quarter of the47,276
5.8
5,183
16.3
5,286
18.5
3,347
24.5
year ended March 2014
(Note) Comprehensive income
Second quarter of the year ending March 2015:3,593 million yen / 9.0 %Second quarter of the year ended March 2014: 3,296 million yen / 66.4 %Net income
per share
Yen

Fully diluted net
income per shareYen

210.23―219.58―

Second quarter of theyear ending March 2015
Second quarter of theyear ended March 2014
(2) Consolidated financial situation

million yen

million yen

Shareholders'equity ratio％

Second quarter of theyear ending March 2015

113,901

84,51674.2

6,079.19

Year ended March 2014

120,730

81,736

67.7

5,879.25

Total assets(Reference) Shareholders' equity:
Second quarter of the year ending March 2015:
Year ended March 2014:

Net assets

84,516 million yen
81,736 million yen-1-

Net Assets per
Share
Yen

2. Dividends
End of the firstquarteryenYearly Dividends per share
End of the
End of the third
End of the term
second quarter
quarter
yen
yen
yen

Annualyen
Year ended
―
45.00
―
100.00145.00March 2014
Year ending―
50.00
March 2015
Year ending
March 2015―
100.00150.00(forecast)(Note) Revisions to recent dividend forecast: Yes
Please refer to “Notification Regarding Dividend of Surplus and Revision of Dividend Forecast for YearEnding March 2015” which was announced today for details.
*NotesThe detail of second quarter dividend of Year ended March 2014; ordinary dividend 40.00 yen, extra dividend
5.00 yen
The detail of year-end dividend of Year ended March 2014; ordinary dividend 40.00 yen, extra dividend 60.00
yen
The detail of second quarter dividend of Year ending March 2015; ordinary dividend 40.00 yen, extra dividend
5.00 yen, commemorative dividend 5.00 yen
The detail of year-end dividend of Year ending March 2015 (Forecast); ordinary dividend 40.00 yen, extra
dividend 60.00 yen
3. Forecast of consolidated financial results for the year ending March 2015 (April 1st, 2014 through March
31st, 2015)（% represents increase or decrease from the previous year）

Net sales

Full-year

millionyen%

108,000

0.4

Operatingincomemillion%yen

Ordinary
incomemillion%yen

million
yen

%

yen

12,00012,0007,600

0.5

546.661.6(0.2)

Net income
per share

Net income(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: Yes(ii) Changes other than (i) above: None(iii) Changes in accounting projections: None(iv) Restatement: None
(Note)For details, please refer to “(3) Change in accounting policies, accounting projections, and restatement”
under the section “2. Summary information” on page 6.

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(4) Number of outstanding shares (common stock)(i) Number of outstanding shares at the end of the period (including treasury stock)
Second quarter of the year ending March 2015: 19,588,000 sharesYear ended March 2014: 19,588,000 shares(ii) Number of shares of treasury stock at the end of the period:
Second quarter of the year ending March 2015: 5,685,338 sharesYear ended March 2014: 5,685,382 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Second quarter of the year ending March 2015: 13,902,674 shares
Second quarter of the year ended March 2014: 15,245,145 shares* Statement concerning the Status of Quarterly Financial Review Procedures
These Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015
are not subject to quarterly financial review under the Financial Instruments and Exchange Act. At the timeof disclosing these Consolidated Financial Statements, financial review procedures specified in the Financial
Instruments and Exchange Act have not been completed with respect to the quarterly consolidated financial
statements.
* 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 6.

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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 -------------------------------------------------------

6

2. Summary information ------------------------------------------------------------------------------------------

6(1) Change in significant subsidiaries during the period ---------------------------------------------------

6(2) Application of special accounting methods for the preparation of the consolidated quarterly
financial statements -------------------------------------------------------------------------------------------

6(3) Change in accounting policies, accounting projections, and restatement ----------------------------

6

3. Material events related to going concern assumptions ----------------------------------------------------

6

4. Consolidated quarterly financial statements ----------------------------------------------------------------

7(1) Consolidated quarterly balance sheets --------------------------------------------------------------------

7(2) Consolidated quarterly income statements and consolidated quarterly comprehensive income
statements

9Consolidated quarterly income statements
Second quarter of the consolidated term ---------------------------------------------------------------

9

Consolidated quarterly comprehensive income statements
Second quarter of the consolidated term --------------------------------------------------------------(3) Notes to consolidated quarterly financial statement

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

10(Notes regarding the premise for going concern) ----------------------------------------------------------

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

10

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----------------

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 continued to face uncertainties such as
reverse effect of last-minute surge in demand caused by the raising of the consumption tax rate and rising ofimported goods prices due to depreciation of the yen, but although expectations for economic recovery
remained strong as improvements were seen in corporate earnings and indicators reflecting employment
conditions.
In the medical equipment industry, the remuneration for medical treatment in FY2014 seeks to establish aframework to provide healthcare services that meet the needs of Japan’s aging society by focusing onchallenges such as the differentiation and strengthening of medical institutions’ functions, encouraging
teamwork throughout Japan’s medical network, and expanding home treatment. Medical institutions face
ever greater demands for efficient, high-quality healthcare.
As a result, the Group posted a consolidated net sales of 47,874 million yen (up 1.3% on a year-to-yearbasis), operating income of 4,535 million yen (down 12.5% on a year-to-year basis), ordinary income of
4,940 million yen (down 6.5% on a year-to-year basis), and a net income of 2,922 million yen (down12.7 % on a year-to-year basis) in the second quarter.
A. Physiological diagnostic equipment segment
The sales of electrocardiographs, vascular screening systems and blood cell counters decreased.
As a result, consolidated net sales were 12,186 million yen (down 9.7% on a year-to-year basis).
B. Patient monitoring equipment segment
Sales of patient monitoring equipment increased.
As a result, consolidated net sales were 3,850 million yen (up 10.3% on a year-to-year basis).
C. Medical treatment equipment segment
The business of renting medical equipment for home treatment and sales of pacemakers andAutomated External Defibrillators(AEDs) increased.
As a result, consolidated net sales were 20,795 million yen (up 6.4% 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 11,042 million yen (up 2.8% on a year-to-year basis).
(2) Explanation about consolidated financial situation
Total assets were 113,901 million yen at the end of the second quarter under review, down 6,829 million
yen from the end of the previous fiscal year.
The main factors are increase of 1,463 million yen in “Investment securities” despite an decrease of
10,459 million yen in “Notes and accounts receivable - trade”.
Liabilities amounted to 29,384 million yen, down 9,609 million yen from the end of the previous fiscal
year.
This is primarily because of a decrease of 6,520 million yen in “Notes and accounts payable-trade” anddecrease of 1,839 million yen in “Income taxes payable”.
Net assets were 84,516 million yen, up 2,779 million yen from the end of the previous fiscal year.
The main factors are an increase of 2,109 million yen in “Retained earnings” and 674 million yen in“Valuation difference on available-for-sale securities”.

-5-(3) Explanation about consolidated earnings forecast
As a forecast, gradual economic recovery is expected to continue, but some influence to the businessenvironment such as the wake of the raising of the consumption tax rate and increasing resource prices areconcerned.
Under these circumstances, we at the Fukuda Denshi Group, remain dedicated to contribute to medical
progress and healthcare in general in accordance with our social mission in order to accommodate the needsof medical institutions that support regional medical services.
There is no change at this moment in the forecast of the financial results for the full fiscal year which weannounced on May 15th, 2014.
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.
2. Summary information(1) Change in significant subsidiaries during the period
Not applicable.
(2) Application of special accounting methods for the preparation of the consolidated quarterly financial
statements
Not applicable.
(3) Change in accounting policies, accounting projections, and restatement(Application of Accounting Standards for Retirement Benefits)
Fukuda Denshi has applied the “Accounting Standard for Retirement Benefits” (Accounting Standards
Board of Japan(ASBJ) Statement No. 26 issued on May 17, 2012, hereinafter, the “Accounting Standard for
Retirement Benefits”) and the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No. 25 issued on May 17, 2012, hereinafter, the “Retirement Benefits Guidance”) from the firstquarter of the current fiscal year with regard to the provisions stipulated in the text from Item 35 of the
Accounting Standard for Retirement Benefits and the text from Item 67 of the Retirement Benefits
Guidance. Accordingly, the Company reviewed the calculation method of retirement benefit liabilities andservice costs, changed the method of attribution period for estimated amount of retirement benefits from the
fix-amount to the benefit formula, and changed the method of determining the discount rate from a method
using the discount rate based on the average remaining service period of employees to a method using theweighted average discount rate which are reflected the approximate number of years of payment and its
amount of each year.
The company is complying with the transitional measures prescribed under Clause 37 of the AccountingStandards for Retirement Benefits regarding its application, and has adjusted the amount “Retained
earnings” at the start of this consolidated fiscal year to reflect the effects of that change.
Consequently, 892 million yen in “Retirement benefit liabilities” decreased at the start of thisconsolidated fiscal year and “Retained earnings” increased 591 million yen.
The impact on profit and loss is minor.
(Application of Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees, etc., through Trusts)
Fukuda Denshi has adopted the “Practical Solution on Transactions of Delivering the Company’s Own
Stock to Employees, etc., through Trusts” (PITF No. 30 issued by the Accounting Standards Board of Japanon December 25, 2013) at the start of this consolidated fiscal year ending March 31, 2015. Accordingly, thecompany recognizes, at the time the company’s own stock is disposed to trust, the difference on disposal,
and posts gain/loss on sales associated with the shares sold by the trust to an employee stock ownershipplan, dividends from the company for the shares held by the trust, and miscellaneous expenses concerning
the trust to liabilities on a net basis. This change in the accounting policy was applied retroactively, andconsequently, the consolidated financial statements for the second quarter of the previous fiscal year and forthe full previous fiscal year present the results after the retroactive application.
The impact of retroactive application is minor.
3. Material events related to going concern assumptions
Not applicable.

-6-4. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets
Previous fiscal year
(as of March 31st, 2014)
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
Short-term loans payable
Income taxes payable
Provision for bonuses
Provision for product warranties
Other provision
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Other provision
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities-7-(Million yen)
End of the second quarter
under review(as of September 30th, 2014)

22,40833,924
273
7,382
149
2,294
4,252
(172)
70,512

21,981
23,464
157
8,053
175
2,110
4,208
(170)
59,98022,526
3,826

23,651
3,479

9,506
14,409(50)
23,86550,218120,730

10,96915,871(52)
26,78953,920113,901

21,851
1,850
3,211
2,488
354
200
4,017
33,973

15,330
1,900
1,371
2,049
341
100
4,395
25,488

1,098
167
2,547
1,206
5,019
38,993

1,101
173
1,402
1,218
3,896
29,384

Previous fiscal year
(as of March 31st, 2014)
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-8-

End of the second quarter
under review(as of September 30th, 2014)

4,621
10,05580,760(14,729)80,707

4,621
10,05582,869(14,730)
82,816

1,057

1,732

(47)

(48)

19

17

1,029

1,700

81,736
120,730

84,516113,901

(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 income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted forusing equity method
Loss on investments in partnership
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Subsidy income
Surrender value of insurance
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on valuation of investment
securities
Total extraordinary losses
Income before income taxes and minority
interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Net income

Second quarter of theprevious consolidated term(from April 1st, 2013
to September 30th, 2013)
47,276
24,68822,588(Million yen)
Second quarter of theconsolidated term(from April 1st, 2014
to September 30th, 2014)
47,87425,03022,843

17,40418,308

5,183

4,535

48
95
163
108
416

36
97
133
155
423

12

12

262

-

3
35
313
5,286

2
4
19
4,940

9
337
67
65
480

4
0
102
107

0
2

3

232

-

235

3

5,531

5,044

2,010
173
2,183
3,347
3,347

1,576
545
2,121
2,922
2,922

-9-

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

Income before minority interests
Other 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, 2013
to September 30th, 2013)
3,347(Million yen)
Second quarter of theconsolidated term(from April 1st, 2014
to September 30th, 2014)
2,922

(41)

674

(10)

(1)

-

(1)

(51)
3,296

671
3,593

3,296

3,593

(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.

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