Summary Report on Financial Results for the Second Quarter of the Year Ending March 2017
（Japan GAAP）
October 31st, 2016
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 8th, 2016
Scheduled date for commencement of dividend payment:
December 5th, 2016
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 2017 (April 1st, 2016 throughSeptember 30th, 2016)(1) Consolidated operating results (cumulative)(% represents increases or decreases from the previous year)
Ordinary
Profit attributable to
Net sales
Operating income
incomeowners of parent
millionmillionmillionmillion
%
%
%
%
yen
yen
yen
yen
Second quarter of the54,072
1.9
5,289
15.9
4,906
0.2
4,676
33.9
year ending March 2017
Second quarter of the
53,050
10.8
4,563
0.6
4,896
(0.9)
3,491
19.5
year ended March 2016
(Note) Comprehensive income
Second quarter of the year ending March 2017:5,102 million yen / 55.2 %Second quarter of the year ended March 2016: 3,288 million yen / (8.5) %Earnings
per shareyen

Diluted earnings
per shareyen

306.08―251.13―

Second quarter of theyear ending March 2017
Second quarter of theyear ended March 2016
(2) Consolidated financial situation

million yen

million yen

Shareholders'equity ratio％

Second quarter of theyear ending March 2017

133,681

101,74076.1

6,752.80

Year ended March 2016

137,164

99,83072.8

6,498.12

Total assets

Net assets(Reference) Shareholders' equity:
Second quarter of the year ending March 2017:
101,740 million yen
Year ended March 2016:
99,830 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
―
90.00
150.00March 2016
Year ending―
60.00
March 2017
Year ending
March 2017―
90.00
150.00(forecast)(Note) Revisions to recent dividend forecast: None
The detail of second quarter dividend of Year ended March 2016; ordinary dividend 40.00 yen, extra dividend
20.00 yen
The detail of year-end dividend of Year ended March 2016; ordinary dividend 40.00 yen, extra dividend 50.00
yen
The detail of second quarter dividend of Year ending March 2017; ordinary dividend 40.00 yen, extra dividend
20.00 yen
The detail of year-end dividend of Year ending March 2017 (Forecast); ordinary dividend 40.00 yen, extra
dividend 50.00 yen
3. Forecast of consolidated financial results for fiscal year ending March 2017 (April 1st, 2016 through March
31st, 2017)（% represents increase or decrease from the previous year）

Net sales

Full-year

millionyen%

117,500

0.2

Operatingincomemillion%yen

Ordinary
incomemillion%yen

11,00011,0003.3

0.6

Profit attributable toowners of parent
million
%
yen
7,500

1.8

Earnings
per shareyen
491.81(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 2017: 19,588,000 sharesYear ended March 2016: 19,588,000 shares(ii) Number of shares of treasury stock at the end of the period:
Second quarter of the year ending March 2017: 4,521,552 sharesYear ended March 2016: 4,225,003 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Second quarter of the year ending March 2017: 15,278,419 shares
Second quarter of the year ended March 2016: 13,902,492 shares* Statement concerning the Status of Quarterly Financial Review Procedures
These Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31st, 2017
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 5.

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

5------------------------------------------------------------------------------------------

6

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

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

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

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

9

3. Material events related to going concern assumptions
4. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets

Consolidated 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(Notes regarding the premise for going concern)

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

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

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

10

1. Qualitative information about consolidated earnings results for the quarter under review(1) Explanation about consolidated operating results
In the second quarter cumulative period, Japanese economy is still recovering, but continued to face
uncertainties such as growing uncertainty in the overseas economies, and the impact of fluctuations inforeign exchange rates, and the influence from the downturn of the economy is a concern. Japanese
economy still has 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 54,072 million yen (up 1.9% on a
year-to-year basis), “Operating income” of 5,289 million yen (up 15.9% on a year-to-year basis), “Ordinary
income” of 4,906 million yen (up 0.2% on a year-to-year basis), and “Profit attributable to parent company
shareholders” of 4,676 million yen (up 33.9% on a year-to-year basis) in the second quarter.
A. Physiological diagnostic equipment segment
While the sales of electrocardiographs and vascular screening systems increased, the sales ofblood-cell counters decreased.
Consolidated “Net sales” were 14,761 million yen (down 4.0% on a year-to-year basis).
B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment were 3,722 million yen (down 0.1% on a
year-to-year basis).
C. Medical treatment equipment segment
While the business of renting medical equipment for home treatment and sales of pacemakers
increased.
Consolidated “Net sales” were 23,031 million yen (up 4.5% 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 12,556 million yen (up 5.3% on a year-to-year basis).
(2) Explanation about consolidated financial situation“Total assets” were 133,681 million yen at the end of the second quarter under review, down 3,482
million yen from the end of the previous fiscal year.
The main factors are the decrease of 7,344 million yen in “Notes and accounts receivable-trade” despite
the increase of 3,700 million yen in “Cash and deposits”.
“Total liabilities” amounted to 31,940 million yen, down 5,392 million yen from the end of the previous
fiscal year.
The main factor is the decrease of 6,751 million yen in “Notes and accounts payable-trade” and 1,111
million yen in “Income taxes payable”.
“Net assets” were 101,740 million yen, up 1,910 million yen from the end of the previous fiscal year.
The main factor is the increase of 1,830 million yen in “Treasury shares” and 3,285 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 13th, 2016.
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.

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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
Change in accounting policies(Application of the Practical Solution on a Change in Depreciation Method due to Tax Reform 2016)
Pursuant to an amendment in the Corporation Tax Act, the Company has applied the Practical Solution
on a Change in Depreciation Method due to Tax Reform 2016 (Practical Issue Task Force (PITF) No.32
issued on June 17th, 2016) from the first quarter of the current fiscal year. Accordingly, the Company
changed the depreciation method for facilities attached to buildings and structures acquired on and after
April 1st, 2016 from the declining-balance method to the straight-line method.
The effect of this change in accounting policies to the quarterly consolidated financial statements for thesecond quarter under review is minimal.
3. Material events related to going concern assumptions
Not applicable.

-6-4. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets(Million yen)
End of the second quarter
under review(as of September 30th, 2016)

Previous fiscal year
(as of March 31st, 2016)
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
Other provision
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities-7-

34,76834,066
1,647
8,917
95
2,140
3,162
(21)
84,77738,46926,721
210
9,350
123
2,495
4,039
(18)
81,394

26,1382,545

26,947
2,391

9,144
14,619(61)
23,702
52,386
137,164

9,629
13,379(62)
22,94752,286
133,681

22,37015,619

-

3,474

1,850

1,900

45

45

1,871
2,054
490
183
4,305
33,172

760
2,128
309
91
3,443
27,772

63
222
2,504
1,370
4,161
37,333

41
207
2,534
1,385
4,167
31,940Previous fiscal year
(as of March 31st, 2016)
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-(Million yen)
End of the second quarter
under review(as of September 30th, 2016)

4,621
22,34091,493(18,386)
100,069

4,621
22,36994,778(20,216)
101,552

774

956

(195)

(46)

(817)

(722)

(238)

187

99,830137,164

101,740
133,681(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
Foreign exchange losses
Loss on investments in partnership
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
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
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, 2015
to September 30th, 2015)
53,05029,377
23,673(Million yen)
Second quarter of theconsolidated term(from April 1st, 2016
to September 30th, 2016)
54,07230,54923,522

19,10918,233

4,563

5,289

30
87
96
139
353

37
88
－
145
270

14
－
1
4
21
4,896

10
635
1
5
652
4,906

2
326
329

2
957
960

－
13

0
34

－

126

13
5,212
2,088
(368)
1,720
3,491
3,491

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

-9-

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, 2015
to September 30th, 2015)
3,491(Million yen)
Second quarter of theconsolidated term(from April 1st, 2016
to September 30th, 2016)
4,676

(90)

182

(35)

149

(76)

94

(202)
3,288

426
5,102

3,288

5,102

(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)
The Board of Directors approved on the acquisition of Fukuda Denshi’s own shares under the Article 156of the Companies Act of Japan applied as mutatis mutandis stipulated under the Article 165-3 of the same
Law during its meeting held on August 23rd, 2016, and as of August 24th, 2016, 296,900 common shares
have been acquired through a fixed price trading at ToSTNeT-3(Market of Tokyo Security Exchange) whichamounted to 1,802 million yen.
As a result, the value of the treasury stock was 20,216 million yen at the end of the second quarter underreview.

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

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