Summary Report on Financial Results for the Second Quarter of the Year Ending March 2020
(Japan GAAP)
October 31st, 2019
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 14th, 2019
Scheduled date for commencement of dividend payment:
December 9th, 2019
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 2020 (April 1st, 2019 throughSeptember 30th, 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
Second quarter of the67,129
15.6
7,159
31.7
7,242
21.9
5,385
22.6year ending March 2020
Second quarter of the58,062
(1.3)
5,434
(9.9)
5,941
(3.9)
4,393
(13.3)
year ended March 2019
(Note) Comprehensive income
Second quarter of the year ending March 2020:5,323 million yen / 24.0 %Second quarter of the year ended March 2019: 4,292 million yen / (19.6) %Earnings
per shareyen

Diluted earnings
per shareYen

353.91―288.73―

Second quarter of theyear ending March 2020
Second quarter of theyear ended March 2019(2) Consolidated financial situation

million yen

million yen

Shareholders'equity ratio％

Second quarter of theyear ending March 2020

164,158

122,901

74.9

8,075.93

Year ended March 2019

160,940

119,18374.1

7,831.61

Total assets(Reference) Shareholders' equity:
Second quarter of the year ending March 2020:
Year ended March 2019:

Net assets

122,901 million yen
119,183 million yen- 1 -Net assets
per shareyen

2. Dividends
End of thefirst quarteryen

Annual Dividends per share
End of theEnd of theEnd of the term
second quarter
third quarteryen
yenyenAnnualyen
Year ended―
70.00―
105.00175.00March 2019Year ending―
75.00
March 2020
Year ending
March 2020―
100.00175.00(forecast)(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)

yen604.54(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 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 2020: 19,588,000 sharesYear ended March 2019: 19,588,000 shares- 2 -(ii) Number of shares of treasury shares at the end of the period:
Second quarter of the year ending March 2020: 4,369,762 sharesYear ended March 2019: 4,369,738 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Second quarter of the year ending March 2020: 15,218,273 shares
Second quarter of the year ended March 2019: 15,217,247 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 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 incomestatements

P.08(1) Consolidated quarterly balance sheets

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

P.08

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)

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 this setting, the Group posted a consolidated “Net sales” of 67,129 million yen (up 15.6% year-onyear basis), “Operating profit” of 7,159 million yen (up 31.7% year-on-year basis), “Ordinary profit” of
7,242 million yen (up 21.9% year-on-year basis), and “Profit attributable to owners of parent” of 5,385
million yen (up 22.6% year-on-year basis) in the second quarter.
A. Physiological diagnostic equipment segment
The number of large orders and IT-related products increased.
As a result, consolidated “Net sales” were 19,127 million yen (up 22.0% year-on-year basis).
B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment were 5,538 million yen (up 50.6% yearon-year basis).
C. Medical treatment equipment segment
While the business of renting medical equipment for home treatment increased, sales of pacemakers
decreased.
As a result, consolidated “Net sales” were 25,316 million yen (up 3.0% 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 17,146 million yen (up 21.4% year-on-year basis).
(2) Explanation about consolidated financial situation“Total assets” were 164,158 million yen at the end of the second quarter under review, up 3,217million
yen from the end of the previous fiscal year.
The main factors are the increase of 3,399 million yen in “Property, plant and equipment” despite thedecrease of 2,214 million yen in “Notes and accounts receivable-trade”.
“Total liabilities” amounted to 41,256 million yen, down 500 million yen from the end of the previousfiscal year.
The main factor is the decrease of 1,284 million yen in “Notes and accounts payable-trade” despite theincrease of 1,265 million yen in “Electronically recorded obligations - operating”.
“Net assets” were 122,901 million yen, up 3,717 million yen from the end of the previous fiscal year.
The main factor is the increase of 3,781 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 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
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 warrantiesOther provision
Other
Total current liabilities
Non-current liabilities
Retirement benefit liability
Other provision
Other
Total non-current liabilities
Total liabilities- 6 -(Million yen)
End of the Second quarter
under review(as of September 30th, 2019)46,85737,33047,21235,115

1,421

1,572

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

141
9,540
263
2,922
1,991
(47)
98,712

31,3291,601

34,7291,605

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

11,055
18,072(17)
29,11065,445
164,158

19,73918,454

5,0656,331

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

1,800
1,257
2,375
120
118
4,387
34,844

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

3,029
299
3,083
6,412
41,256

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 -(Million yen)
End of the Second quarter
under review(as of September 30th, 2019)

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

4,621
21,817
115,443(19,661)
122,220

1,270

1,307

(235)

(364)

(291)

(261)

743

680

119,183
160,940

122,901
164,158

(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
expensesOperating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Gain on investments in investment
partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on investments in investment
partnership
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

Second quarter of theprevious consolidated term(from April 1st, 2018
to September 30th, 2018)
58,062
33,11624,946(Million yen)
Second quarter of theconsolidated term(from April 1st, 2019
to September 30th, 2019)67,12940,24526,884

19,511

19,725

5,434

7,159

21
295
133

34
79-

8

684
543

75
196

24-

1973

1

111
37
5,941

19
113
7,242

4550

0351-

33554

385

010128
1141
6,353
1,593
366
1,960
4,393
4,393

1212
7,616
1,749
480
2,230
5,385
5,385

- 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, 2018
to September 30th, 2018)
4,393(Million yen)
Second quarter of theconsolidated term(from April 1st, 2019
to September 30th, 2019)
5,385(113)

36(14)(129)

2530(101)
4,292(62)
5,323

4,292

5,323

(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 -