Summary Report on Financial Results for the Second Quarter of the Year Ending March 31st, 2021
(Japan GAAP)
October 30th, 2020
Stock 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:
November 13th, 2020
Scheduled date for commencement of dividend payment:
December 7th, 2020
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 31st, 2021 (April 1st, 2020
through September 30th, 2020)(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 the year
60,670
(9.6)
6,978
(2.5)
7,157
(1.2)
5,464
1.5
ending March 31st, 2021
Second quarter of the year
67,129
15.6
7,159
31.7
7,242
21.9
5,385
22.6
ended March 31st, 2020
(Note) Comprehensive income
Second quarter of the year ending March 2021:5,871 million yen / 10.3 %Second quarter of the year ended March 2020: 5,323 million yen / 24.0 %Earnings
per share
Second quarter of the year
ending March 31st, 2021
Second quarter of the year
ended March 31st, 2020

yen

Diluted earnings
per shareYen

361.45―353.91―(2) Consolidated financial situation
million yen

million yen

Shareholders'equity ratio％

Second quarter of the year
ending March 31st, 2021

167,077

128,70377.0

8,512.35

Year ended March 31st, 2020

168,742

124,42773.7

8,229.96

Total assets

Net assets(Reference) Shareholders' equity:
Second quarter of the year ending March 31st, 2021:
Year ended March 31st, 2020:- 1 -128,703 million yen
124,427 million yen

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 March
―
75.00
―
105.00180.0031st, 2020
Year ending March―
75.00
31st, 2021
Year ending March―
105.00180.0031st, 2021 (forecast)(Note) Revisions to recent dividend forecast: None
The detail of second quarter dividend of Year ended March 31st, 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 31st, 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 31st, 2021; ordinary dividend 55.00 yen, extra
dividend 20.00 yen
The detail of year-end dividend of Year ending March 31st, 2021 (forecast); ordinary dividend 60.00 yen, extra
dividend 45.00 yen
3. Forecast of consolidated financial results for fiscal year ending 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)

yen
601.87(Note) Revisions to recent business forecast: None
Since Fukuda Denshi’s (hereinafter, “the Group”) operating results tend to take a peak at the fourth quarterand it is difficult to give a forecast in 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 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 31st, 2021: 19,588,000 sharesYear ended March 31st, 2020: 19,588,000 shares(ii) Number of shares of treasury shares at the end of the period:- 2 -Second quarter of the year ending March 31st, 2021:
Year ended March 31st, 2020: 4,469,117 shares

4,468,429 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Second quarter of the year ending March 31st, 2021: 15,119,291 shares
Second quarter of the year ended March 31st, 2020: 15,218,273 shares* Summary Report on Financial Results for the Second Quarter is not subject to quarterly review by certified
public accountants or an auditing firm.
* 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(1) Consolidated quarterly balance sheets------------------------------------------------------------------

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

P.08

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

P.08

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

P.09(3) Notes to consolidated quarterly financial statement --------------------------------------------------

P.09(Notes regarding the premise for going concern)

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 our second consolidated fiscal quarter has been in severe conditions due tothe continued impact of the COVID-19 pandemic, 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 60,670 million yen (down 9.6%
year-on-year basis), “Operating profit” of 6,978 million yen (down 2.5% year-on-year basis), “Ordinary
profit” of 7,157 million yen (down 1.2% year-on-year basis), and “Profit attributable to owners of parent” of
5,464 million yen (up 1.5% year-on-year basis) in the second quarter.
A. Physiological diagnostic equipment segment
Due to the decrease in the sales of electrocardiographs and IT-related products, consolidated “Netsales” resulted in 15,728 million yen (down 17.8% year-on-year basis).
B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment resulted in 4,541 million yen (down 18.0%
year-on-year basis).
C. Medical treatment equipment segment
While the sales of AEDs and pacemakers decreased, the sales of ventilators and the business ofrenting medical equipment for home treatment increased. Consolidated “Net sales” resulted in 25,499
million yen (up 0.7% year-on-year basis).
D. Consumables and other products segment
Consumables and other products segment includes the sales of recording paper, disposable
electrodes, and consumables used for devices in the above segments, as well as maintenance andrepair services.
Consolidated “Net sales” for this segment resulted in 14,900 million yen (down 13.1% year-on-yearbasis).
(2) Explanation about consolidated financial situation“Total assets” decreased 1,665 million yen from the end of previous fiscal year to reach 167,077 million
yen. The main factors are the decrease of 7,951 million yen in “Notes and accounts receivable-trade”
despite the increase of 1,643 million yen in “Merchandise and finished goods” and 1,083 million yen in“Property, plant and equipment”.
“Total liabilities” decreased 5,940 million yen from the end of the previous fiscal year to reach 38,373
million yen. The main factors are the decrease of 3,398 million yen in “Notes and accounts payable-trade”
and 712 million yen in “Income taxes payable”.
“Net assets” increased 4,275 million yen from the end of the previous fiscal year to reach 128,703
million yen. The main factor is the increase of 3,865 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 announced on July 31st, 2020.
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, 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
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 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 Second quarter
under review(as of September 30th, 2020)

49,11236,37851,58628,426

1,681

1,654

107
9,553
198
2,559
1,670
(45)
101,215104
11,197
228
2,750
2,085
(34)
97,99936,443
1,731

37,527
1,704

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

10,48819,372(14)
29,84569,077167,077

18,263

14,864

6,081

5,654

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

1,800
1,649
2,437
148
148
4,817
31,520

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

3,466
344
3,043
6,853
38,373

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 Second quarter
under review(as of September 30th, 2020)

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

4,621
21,817
122,382(20,355)
128,466

644

1,047

(353)

(396)

(461)

(413)

(169)

237

124,427
168,742

128,703
167,077

(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
Gain on investments in investment
partnerships
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on investments in investment
partnerships
Other
Total non-operating expenses
Ordinary 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
Office relocation expenses
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, 2019
to September 30th, 2019)67,12940,24526,884(Million yen)
Second quarter of theconsolidated term(from April 1st, 2020
to September 30th, 2020)
60,67034,02826,641

19,725

19,663

7,159

6,978

34
79
-

29
82
11

6

-

75
196

84
207

19
73

19
-

1

0

19
113
7,242

9
29
7,157

0
351

37
487
436

33

-

385

961

12

1
0

-

381

12
7,616
1,749
480
2,230
5,385
5,385

3
387
7,731
2,290
(23)
2,266
5,464
5,464

- 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, 2019
to September 30th, 2019)
5,385(Million yen)
Second quarter of theconsolidated term(from April 1st, 2020
to September 30th, 2020)
5,464

36

403

(129)

(43)

30

47

(62)
5,323

406
5,871

5,323

5,871

(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 -