Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Non-Consolidated Financial Results
for the Year Ended March 31, 2022
(Based on Japanese GAAP)May 13, 2022
Company name:

DAIKEN MEDICAL CO., LTD.

Stock exchange listing: Tokyo
Stock code:
7775
Representative:
Inquiries:

URL

https://daiken-iki.co.jp

President
General Manager Finance and Accounting

Division
Scheduled date of ordinary general meeting of shareholders:Keiichi Yamada
Toshikazu Itami

TEL0725-30-3574

June 21, 2022

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 21, 2022
June 6, 2022

Preparation of supplementary material on financial results:
Holding of financial results meeting:YesNo(Amounts less than one million yen are rounded down)
1. Non-consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Non-consolidated operating results

Percentages indicate year-on-year changes
Net salesYear ended March 31, 2022
Year ended March 31, 2021

Millions of yen
8,540
7,861

Operating profit% Millions of yen
8.6
1,150(7.8)
921

Diluted earnings pershare
Yen
Yen
28.93
–
23.50
–

Earnings per share
Year ended March 31, 2022
Year ended March 31, 2021

Ordinary profit% Millions of yen
24.9
1,152(22.9)
957

Profit% Millions of yen
20.4
831(20.9)
675%
23.1(21.4)

Ordinary profit/total Operating profit/net
assets
sales
%%%
13.2
10.6
13.5
11.0
8.8
11.7

Profit/equity(2) Non-consolidated financial position
Total assets
As of March 31, 2022
As of March 31, 2021

Net assets

Equity ratio

Millions of yen
10,92010,752Millions of yen
6,446
6,182

Cash flows fromoperating activities
Millions of yen
1,133
609

Cash flows frominvesting activities
Millions of yen
(196)
(311)

Net assets per share%
59.0
57.5

Yen
224.13215.20(3) Non-consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(589)
2,518(492)2,170

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)

Total cash
dividends (Total)

Total

Dividend payout
ratio (Nonconsolidated)

Ratio of dividends
to net assets (Nonconsolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

–
–

9.00
9.00

––

11.00
11.00

20.00
20.00

574
574

85.1
69.1

9.4
9.1

–

9.00

–

11.00

20.00

1

68.4

3. Forecast of non-consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Net sales
Millions of yen
Six months ending
September 30, 2022
Full year

Operating profit

Ordinary profit

Profit% Millions of yen% Millions of yen% Millions of yen

4,170

2.1

520(8.0)520(8.0)

8,750

2.5

1,200

4.3

1,200

4.1

Earnings per share%Yen360(10.1)

12.53

840

1.1

29.24

4. Notes(1) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

31,840,000 shares As of March 31, 2021

31,840,000 shares

Number of treasury shares at the end of the period
As of March 31, 20223,111,559 shares As of March 31, 2021

3,111,559 shares

28,728,441 shares Year ended March 31, 2021

28,728,441 shares

Average number of shares during the period
Year ended March 31, 20222

Non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable - trade2,170,643
207,599

2,518,589
130,420

Electronically recorded monetary claims - operating
Accounts receivable - trade989,922
1,390,157

1,085,208
1,215,746Finished goods
Work in process

891,41286,665

973,067
72,279Raw materials
Prepaid expenses

443,833
23,090499,189
19,796

Other
Allowance for doubtful accounts

69,312(87)

58,227(91)

6,272,550

6,572,435

2,019,367
1,744

1,937,619
1,382

Machinery and equipment, net
Vehicles, net

183,88132

151,205
0Tools, furniture and fixtures, net
Land240,247
1,703,670

161,062
1,703,670

36,804
39,34333,557130,9024,225,091

4,119,400

Total current assets
Non-current assets
Property, plant and equipment
Buildings, netStructures, net

Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Software

16,6209,604

Software in progress
Telephone subscription right–
5,103

427
5,103

Total intangible assets

21,723

15,135Investments and other assets
Investments in capital

1010

Long-term prepaid expenses
Deferred tax assets

2,954
166,8022,128
160,449

Guarantee deposits
Membership

53,391
13,10040,846
13,100Life insurance funds
Long-term accounts receivable - other

8,797
13,1508,797
13,150Allowance for doubtful accounts(24,650)(24,650)

Total investments and other assets

233,555

213,831

Total non-current assets
Total assets

3

4,480,370

4,348,367

10,752,921

10,920,803

(Thousands of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes payable - trade405,10913,336

141,364
411,252

546,724
443,847

1,000,000
704,034

1,000,000
597,826

Accounts payable - other
Lease liabilities

140,220
11,875

138,601
11,194

Accrued expenses
Income taxes payable

179,500
111,074

70,899212,541

Accrued consumption taxes
Deposits received8,089
12,17876,182
11,348Notes payable - facilities
Electronically recorded obligations-facilities

32,826561

5,967
13,744

Provision for Sales allowance
Asset retirement obligations

179,3466,738––Electronically recorded obligations - operating
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings

Other

2,844

9,022

3,347,018

3,151,237

1,177,859
28,894

1,280,033
26,142Long-term guarantee deposits
Other

14,0852,789

14,604
2,654

Total non-current liabilities

1,223,627

1,323,434

4,570,645

4,474,671

Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities

Total liabilities
Net assets
Shareholders' equity
Share capital

495,875

495,875

Capital surplus
Legal capital surplus

400,875

400,875

Total capital surplus

400,875

400,875

Retained earnings
Legal retained earnings

23,75023,750

Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings

690,000

690,000

6,398,357

6,654,845

7,112,107

7,368,595

Treasury shares(1,826,582)(1,826,582)

Total shareholders' equity

6,182,275

6,438,763

–

7,368

Share acquisition rights
Total net assets
Total liabilities and net assets

4

6,182,275

6,446,131

10,752,921

10,920,803

Non-consolidated statements of income(Thousands of yen)

Net sales
Cost of sales

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

7,861,969

8,540,443

770,451
4,684,874

891,412
4,941,661

27,796
7,736

85,882
8,399

5,490,859

5,927,356

96,612
891,41297,806
973,067

4,502,833

4,856,482

Gross profit

3,359,135

3,683,960

Selling, general and administrative expenses

2,437,919

2,533,081

921,216

1,150,878

Beginning finished goods inventory
Cost of products manufactured
Cost of purchased goods
Cost of construction by the outside order
Total
Transfer to other accountEnding finished goods inventory
Total cost of sales

Operating profit
Non-operating income
Interest income

00843
704

1,537
1,164

Gain on forfeiture of unclaimed dividends
Subsidy income

1,059
36,072796–

Miscellaneous income

1,142

1,738

Total non-operating income

39,822

5,236Interest expenses
Other3,807
6

3,737
3

Total non-operating expenses

3,813

3,740

957,225

1,152,374

707

1,037

11,767–Compensation income
Foreign exchange gains

Non-operating expenses

Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Office transfer related cost

12,474

1,037

Profit before income taxes

Total extraordinary losses

944,750

1,151,337

Income taxes - current
Income taxes - deferred

241,502
28,016

313,928
6,352

Total income taxes

269,518

320,280

Profit675,231

831,0565

Non-consolidated statements of changes in equityFiscal year ended March 31, 2021
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of period

495,875

Legal capitalsurplus

Total capitalsurplus

Legal retained
earnings

400,875

400,875

23,750Retainedearnings
brought
forwardGeneralreserve
690,000

Total retained
earnings

6,297,694

7,011,444

Dividends of surplus(574,568)(574,568)

Profit675,231675,231

Changes during period

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–––

–

–

100,663

100,663495,875

400,875

400,875

23,750690,000

6,398,357

7,112,107

ShareacquisitionrightsTotal net assets

Shareholders' equity
Total
shareholders'equityTreasurysharesBalance at beginning of period(1,826,582)

6,081,612–

6,081,612

Changes during period
Dividends of surplus(574,568)(574,568)

Profit675,231675,231

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period––

100,663–

100,663(1,826,582)

6,182,275–

6,182,275

6Fiscal year ended March 31, 2022
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of period

495,875

Legal capitalsurplus

Total capitalsurplus

Legal retained
earnings

400,875

400,875

23,750Retainedearnings
brought
forwardGeneralreserve
690,000

Total retained
earnings

6,398,357

7,112,107

Dividends of surplus(574,568)(574,568)

Profit831,056

831,056

Changes during period

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

––––

–

256,487

256,487495,875

400,875

400,875

23,750690,000

6,654,845

7,368,595

ShareacquisitionrightsTotal net assets

Shareholders' equity
Total
shareholders'equityTreasurysharesBalance at beginning of period(1,826,582)

6,182,275–

6,182,275

Changes during period
Dividends of surplus(574,568)(574,568)

Profit831,056

831,056

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

7,368

7,368

–

256,487

7,368

263,856(1,826,582)

6,438,7637,368

6,446,131

7

Non-consolidated statements of cash flows(Thousands of yen)
Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

Cash flows from operating activities
Profit before income taxes

944,750

1,151,337

Depreciation
Share-based payment expenses

256,517–

314,423
7,368

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for sales allowance(5)
179,346

4(179,346)

(0)
3,807

(0)
3,737

Decrease (increase) in trade receivables
Decrease (increase) in inventories

138,703(248,458)

156,304(122,625)

Increase (decrease) in trade payables
Office transfer related cost

(8,740)11,767

46,181–

Loss on retirement of non-current assets
Subsidy income

707(36,072)

1,037–

Decrease (increase) in accounts receivable - other
Increase (decrease) in accounts payable - other

31,8087,389

1,401(8,701)(266,186)(108,601)(82,700)

68,092

Interest and dividend income
Interest expenses

Increase (decrease) in accrued expenses
Increase/decrease in consumption taxes payable/consumption
taxes refund receivable
Other, net

6,228

25,499Subtotal

938,862

1,356,112

Interest and dividends received
Interest paid0(3,692)0(3,989)

Income taxes paid

(325,998)(218,500)

Net cash provided by (used in) operating activities

609,170

1,133,623(308,098)–(202,502)
912(3,949)
(733)

(714)
(480)

874
–

13,026(6,479)(311,906)(196,237)

Cash flows from financing activities
Proceeds from long-term borrowings

800,000

700,000

Repayments of long-term borrowings
Dividends paid

(908,031)(574,884)(704,034)(574,296)

Net increase (decrease) in short-term borrowings
Repayments of lease liabilities

200,000(9,105)–(11,108)

Net cash provided by (used in) financing activities(492,021)(589,439)

Net increase (decrease) in cash and cash equivalents(194,757)

347,946

Cash and cash equivalents at beginning of period

2,365,400

2,170,643

Cash and cash equivalents at end of period

2,170,643

2,518,589

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Payments for asset retirement obligations
Net cash provided by (used in) investing activities

8