Summary Report on Financial Results for the Third Quarter of the Year Ending March 2020
(Japan GAAP)
January 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:
February 14th, 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 Third quarter of the year ending March 2020 (April 1st, 2019 throughDecember 31st, 2019)(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
Third quarter of the year
95,345
5.8
9,162
11.7
9,361
6.9
6,824
9.3
ending March 2020
Third quarter of the year
90,1562.2
8,201(2.8)
8,758
(0.7)
6,242(8.7)
ended March 2019
(Note) Comprehensive income
Third quarter of the year ending March 2020:7,472 million yen / 67.5 %Third quarter of the year ended March 2019: 4,461 million yen / (40.3) %Earnings
per shareyen

Diluted earnings
per shareYen

449.03―410.23―

Third quarter of the year
ending March 2020
Third quarter of the year
ended March 2019(2) Consolidated financial situation

million yen

million yen

Shareholders'equity ratio％

Third quarter of the year
ending March 2020

161,516

123,201

76.3

8,149.18

Year ended March 2019

160,940

119,18374.1

7,831.61

Total assets

Net assets(Reference) Shareholders' equity:
Third quarter of the year ending March 2020: 123,201 million yen
Year ended March 2019:
119,183 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―
70.00―
105.00175.00March 2019Year ending―
75.00―
March 2020Year ending
March 2020
100.00175.00forecast)(Note) Revisions to recent dividend forecast: None
The detail of second quarter dividend of Year ended March 2019; ordinary dividend 55.00 yen, extra dividend
15.00 yen
The detail of year-end dividend of Year ended March 2019; 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 2020; ordinary dividend 55.00 yen, extra dividend
15.00 yen, commemorative dividend 5.00 yen
The detail of year-end dividend of Year ending March 2020 (forecast); ordinary dividend 60.00 yen, extra
dividend 40.00 yen
3. Forecast of consolidated financial results for fiscal year ending March 2020 (April 1st, 2019 through March
31st, 2020)(% represents increase or decrease from the previous year)

Net sales

Full-year

Operating Profit

Ordinary Profit

millionyen%

millionyen%

millionyen%

131,000

0.9

12,7000.4

12,900(2.9)

Profit attributableto owners of parent
million%yen
9,200

Earnings
per share(3.9)

yen606.07(Note) Revisions to recent business forecast: None*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)
Third quarter of the year ending March 2020: 19,588,000 sharesYear ended March 2019: 19,588,000 shares(ii) Number of shares of treasury shares at the end of the period:
Third quarter of the year ending March 2020: 4,469,677 shares- 2 -Year ended March 2019: 4,369,738 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Third quarter of the year ending March 2020: 15,198,271 sharesThird quarter of the year ended March 2019: 15,217,437 shares* Summary Report on Financial Results for the Third 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 Fukuda Denshi (hereinafter,“Company”). Please be advised that the Company does not guarantee in any way the achievement of theprojections and other goals in this material and that cases may occur where the actual results and othersituations differ materially from the projections due to various factors. With respect to the preconditions forthe forecast of financial results, please refer to “(3) Explanation about consolidated earnings forecast” underthe “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
Third quarter of the consolidated term -------------------------------------------------------------

P.08

Consolidated quarterly comprehensive income statements
Third 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
Although the Japanese economy has gradually expanded during the current consolidated fiscal year, theslowdown of overseas economy has an effect on the export and the production and uncertainty about thefuture still remains.
In the medical device industry, the government lowered the medical fee in FY2018 as a whole.
Though the medical fee has been revised in October 2019 so as to offset the consumption tax raise, medical
institutions still face continuous demands for efficient and high-quality healthcare services.
In such an environment, the Group posted a consolidated “Net sales” of 95,345 million yen (up 5.8% on
a year-on-year basis), “Operating profit” of 9,162 million yen (up 11.7% on a year-on-year basis),“Ordinary profit” of 9,361 million yen (up 6.9% on a year-on-year basis), and “Profit attributable to ownersof parent” of 6,824 million yen (up 9.3% on a year-on-year basis) in the third quarter.
A. Physiological diagnostic equipment segment
The number of large orders and IT-related products increased.
As a result, consolidated “Net sales” were 25,730 million yen (up 6.0% year-on-year basis).
B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment were 7,280 million yen (up 19.4% yearon-year basis).
C. Medical treatment equipment segment
While the business of renting medical equipment for home treatment increased, the sales ofpacemakers decreased.
As a result, consolidated “Net sales” were 37,235 million yen (down 0.5% on a 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 25,099 million yen (up 12.2% on a year-on-yearbasis).
(2) Explanation about consolidated financial situation“Total assets” were 161,516 million yen at the end of the third quarter under review, up 575 million yen
from the end of the previous fiscal year.
The main factors are the increase of 4,507 million yen in “Property, plant and equipment” and 2,472
million yen in “Merchandise and finished goods” despite the decrease of 6,990 million yen in “Notes andaccounts receivable - trade”.
“Total liabilities” amounted to 38,314 million yen, down 3,442 million yen from the end of the previous
fiscal year.
The main factor is the decrease of 3,393 million yen in “Notes and accounts payable - trade” despite theincrease of 1,597 million yen in “Electronically recorded obligations - operating”.
“Net assets” were 123,201 million yen, up 4,018 million yen from the end of the previous fiscal year.
The main factor is the increase of 4,069 million yen in “Retained earnings”.
(3) Explanation about consolidated earnings forecast
Due to the steady sales achievement until the third quarter, there is no change at this moment in theforecast of the financial results for the full fiscal year which we announced on May 15th, 2019.
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, 2019)
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 assetsProperty, 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 provision
Other
Total current liabilities
Non-current liabilities
Retirement benefit liability
Other provision
Other
Total non-current liabilities
Total liabilities- 6 -(Millions of yen)
End of the Third quarter
under review(as of December 31st, 2019)46,85737,33045,18130,339

1,421

1,718

145
9,197
104
2,632
1,769
(51)
99,406

144
11,669
223
2,968
1,661
(38)
93,86731,3291,601

35,836
1,589

10,43618,183(17)
28,602
61,533160,940

11,956
18,288(22)
30,222
67,648
161,516

19,73916,345

5,065

6,662

1,750
1,141
2,484
143
239
4,883
35,448

1,800
157
1,306
120
256
5,180
31,829

2,885
283
3,139
6,309
41,757

3,087
301
3,096
6,485
38,314

Previous fiscal year
(as of March 31st, 2019)
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 -(Millions of yen)
End of the Third quarter
under review(as of December 31st, 2019)

4,621
21,696111,662(19,540)
118,439

4,621
21,817
115,732(20,360)
121,810

1,270

1,964

(235)

(326)

(291)

(246)

743

1,391

119,183
160,940

123,201
161,516(2) Consolidated quarterly income statements and consolidated quarterly comprehensive income statements
Consolidated quarterly income statements(Third 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
OtherTotal 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
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
Building demolition cost
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to owners of parent

Third quarter of theprevious consolidated term(from April 1st, 2018
to December 31st, 2018)
90,156
52,77337,382(Millions of yen)
Third quarter of theconsolidated term(from April 1st, 2019
to December 31st, 2019)
95,34556,45538,89029,18029,727

8,201

9,162

28
332
65

47
118
-

34

11

145
607

112
290

35-

29
39-

1

15
50
8,758

20
91
9,361

136
550

41
355

-

33

687

431

113
12
128
9
264
9,181
2,424
514
2,938
6,242
6,242

13
13
9,778
2,319
634
2,954
6,824
6,824

- 8 -

Consolidated quarterly comprehensive income statements(Third 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

Third quarter of theprevious consolidated term(from April 1st, 2018
to December 31st, 2018)
6,242(Millions of yen)
Third quarter of theconsolidated term(from April 1st, 2019
to December 31st, 2019)
6,824(1,735)

694

(84)

(91)

3845

(1,781)
4,461

648
7,472

4,461

7,472

(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 -