Summary Report on Financial Results for the Third Quarter of the Year Ending March 2016
（Japan GAAP）
January 29th, 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:
February 8th, 2016
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 2016 (April 1st, 2015 throughDecember 31st, 2015)(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
Third quarter of the year
80,902
12.5
6,881
12.4
7,187
4.4
4,847
18.9
ending March 2016
Third quarter of the year
71,8892.3
6,120 (16.9)
6,881
(6.3)
4,077
(17.0)
ended March 2015
(Note) Comprehensive income
Third quarter of the year ending March 2016:4,854 million yen / (0.1) %Third quarter of the year ended March 2015: 4,856 million yen / (2.2) %Earnings
per share
Yen

Diluted earnings
per shareYen

338.05―293.28―

Third quarter of theyear ending March 2016
Third quarter of theyear ended March 2015
(2) Consolidated financial situation

million yen

million yen

Shareholders'equity ratio％

Third quarter of theyear ending March 2016

132,995

100,235

75.4

6,524.44

Year ended March 2015

124,582

88,99171.4

6,401.07

Total assets

Net assets(Reference) Shareholders' equity:
Third quarter of the year ending March 2016: 100,235 million yen
Year ended March 2015:
88,991 million yen-1-

Net Assets per
Share
Yen

2. Dividends
End of thefirst quarteryenYearly Dividends per share
End of the
End of the
End of the term
second quarter
third quarter
yen
yen
yen

Annualyen
Year ended
―
50.00
―
100.00150.00March 2015
Year ending
―
60.00
―
March 2016
Year ending
March 2016
90.00
150.00(forecast)(Note) Revisions to recent dividend forecast: None
The detail of second quarter dividend of Year ended March 2015; ordinary dividend 40.00 yen, extra dividend
5.00 yen, commemorative dividend 5.00 yen
The detail of year-end dividend of Year ended March 2015; ordinary dividend 40.00 yen, extra dividend 60.00
yen
The detail of second quarter dividend of Year ending March 2016; ordinary dividend 40.00 yen, extra dividend
20.00 yen.
The detail of year-end dividend of Year ending March 2016 (Forecast); ordinary dividend 40.00 yen, extra
dividend 50.00 yen
3. Forecast of consolidated financial results for the year ending March 2016 (April 1st, 2015 through March
31st, 2016)（% represents increase or decrease from the previous year）

Net sales

Full-year

millionyen%

109,000

0.7

Operatingincomemillion%yen

Ordinary
incomemillion%yen

12,00012,00016.5

5.5

Profit attributable toowners of parent
million
%
yen
7,380

3.7

Earnings
per shareyen
506.29(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)
Third quarter of the year ending March 2016: 19,588,000 sharesYear ended March 2015: 19,588,000 shares(ii) Number of shares of treasury stock at the end of the period:
Third quarter of the year ending March 2016: 4,224,983 sharesYear ended March 2015: 5,685,418 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Third quarter of the year ending March 2016: 14,340,674 shares
Third quarter of the year ended March 2015: 13,902,652 shares* Statement concerning the Status of Quarterly Financial Review Procedures
These Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31st, 2016
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

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

6(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

3. Material events related to going concern assumptions ----------------------------------------------------

6

4. Consolidated quarterly financial statements ----------------------------------------------------------------

7(1) Consolidated quarterly balance sheets --------------------------------------------------------------------

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

9Consolidated quarterly income statements
Third quarter of the consolidated term ----------------------------------------------------------------

9

Consolidated quarterly comprehensive income statements
Third quarter of the consolidated term ---------------------------------------------------------------(3) Notes to consolidated quarterly financial statement

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

10(Notes regarding the premise for going concern) ----------------------------------------------------------

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

10

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

1. Qualitative information about consolidated earnings results for the quarter under review(1) Explanation about consolidated operating results
In the third quarter cumulative period, improvements were seen in corporate earnings and indicatorsreflecting the employment conditions, the Japanese economy remained a moderate recovery.
In the medical equipment industry, the remuneration for medical treatment in FY2014 seeks to establish aframework to provide healthcare services that meet the needs of Japan’s aging society by focusing onchallenges such as the differentiation and strengthening of medical institutions’ functions, encouraging
teamwork throughout Japan’s medical network, and expanding home treatment. Medical institutions face
ever greater demands for efficient, high-quality healthcare.
As a result, the Group posted a consolidated net sales of 80,902 million yen (up 12.5% on a year-to-yearbasis), operating income of 6,881 million yen (up 12.4% on a year-to-year basis), ordinary income of 7,187
million yen (up 4.4% on a year-to-year basis), and profit attributable to owners of parent of 4,847 million
yen (up 18.9% on a year-to-year basis) in the third quarter.
A. Physiological diagnostic equipment segment
The sales of electrocardiographs, vascular screening systems and blood cell counters increased.
Consolidated “Net sales” were 23,796 million yen (up 28.6% on a year-to-year basis).
B. Patient monitoring equipment segment
Sales of patient monitoring equipment increased.
Consolidated “Net sales” were 5,773 million yen (up 2.4% 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 33,243 million yen (up 7.1% 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 18,089 million yen (up 8.2% on a year-to-year basis).
(2) Explanation about consolidated financial situation
Total assets were 132,995 million yen at the end of the third quarter under review, up 8,413 million yen
from the end of the previous fiscal year.
The main factors are the increase of 5,918 million yen in “Cash and deposits” and 3,165 million yen in“Merchandise and finished goods” despite the decrease of 5,734 million yen in “Notes and accounts
receivable-trade”.
Liabilities amounted to 32,760 million yen, down 2,830 million yen from the end of the previous fiscal
year.
The main factors are the decrease of 925 million yen in “Provision for bonuses” and 872 million yen in“Notes and accounts payable-trade”.
Net assets were 100,235 million yen, up 11,243 million yen from the end of the previous fiscal year.
The main factor is the increase of 12,285 million yen in “Capital surplus”.
(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, 2015.
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(Application of Accounting Standard for Business Combinations, etc.)
Fukuda Denshi Co., Ltd. (hereinafter referred to as “Fukuda Denshi”) has applied the AccountingStandard for Business Combinations (ASBJ Statement No.21 issued on September 13th, 2013, hereinafter,
the “Business Combinations Accounting Standard”), the Accounting Standard for Consolidated Financial
Statements (ASBJ Statement No.22 issued on September 13th, 2013, hereinafter, the “Consolidated
Accounting Standard”) and the Accounting Standard for Business Divestitures (ASBJ Statement No.7
issued on September 13th, 2013, hereinafter, the “Business Divestitures Accounting Standard”), etc. fromthe first quarter of the current consolidated fiscal year, will post the difference due to changes in the
Company’s equity in a subsidiary when the Company continues to control the subsidiary as capital surplus
and change to the method of posting the acquisition-related expenses as expenses in the consolidated fiscal
year in which they were incurred. Furthermore, for business combinations implemented from the
beginning of the first quarter of the current consolidated fiscal year onwards the Company has changed tothe method of reflecting the revision of the allocated amount of the acquisition cost due to the finalizationof the provisional accounting treatment in the quarterly consolidated financial statements for the
consolidated fiscal quarter in which the business combination date occurs. In addition, the Company haschanged the presentation of quarterly net income, etc. and has changed the term “minority interests” to“non-controlling interests.” The Company has adjusted the quarterly consolidated financial statements andconsolidated financial statements for the third quarter of the previous consolidated cumulative fiscal year
and the previous consolidated fiscal year in order to reflect these changes in the presentation.
Regarding the application of the Business Combinations Accounting Standard, etc., the Company iscomplying with the transitional measures prescribed under the Business Combinations AccountingStandard, Clause 58-2 (4), the Consolidated Accounting Standard, Clause 44-5 (4) and the Business
Divestitures Accounting Standard, Clause 57-4 (4), and will apply the new accounting standards from the
beginning of the first quarter of the current consolidated fiscal year into the future.
The impact on profit and loss is minor.
3. Material events related to going concern assumptions
Not applicable.

-6-4. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets
Previous fiscal year
(as of March 31st, 2015)
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
Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Income taxes payable
Provision for bonuses
Provision for product warranties
Other provision
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Other provision
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities-7-(Million yen)
End of the third quarter
under review(as of December 31st, 2015)

25,72632,698
192
8,616
112
2,128
3,781
(24)
73,232

31,64426,964
1,647
11,781
165
2,862
3,590
(12)
78,64324,0962,551

26,446
2,667

11,362
13,350(12)24,701
51,349124,582

10,53914,757(60)
25,23654,351
132,995

22,620
1,850
1,832
2,034
370
173
4,610
33,493

21,748
1,900
1,005
1,109
464
126
4,120
30,475

192
548
1,356
2,097
35,590

123
202
581
1,376
2,284
32,760Previous fiscal year
(as of March 31st, 2015)
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
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 third quarter
under review(as of December 31st, 2015)

4,621
10,05586,369(14,731)
86,315

4,621
22,34088,976(18,386)
97,552

2,164

2,297

(152)

(173)

664

557

2,676

2,682

88,991
124,582

100,235
132,995

(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 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
Gain on sales of investment securities
Subsidy income
Surrender value of insurance
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Total extraordinary losses
Income before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to owners of parent

Third quarter of theprevious consolidated term(from April 1st, 2014
to December 31st, 2014)
71,88937,93033,958(Million yen)
Third quarter of theconsolidated term(from April 1st, 2015
to December 31st, 2015)
80,90245,61935,283

27,83828,401

6,120

6,881

50
129
395
213
788

50
118
173
341

18
2
6
27
6,881

20
4
1
8
36
7,187

6
5
27
102
141

3
350
11
365

9
9

0
14
14

7,013

7,537

2,274
661
2,936
4,077
4,077

2,755
(65)
2,690
4,847
4,847

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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, 2014
to December 31st, 2014)
4,077(Million yen)
Third quarter of theconsolidated term(from April 1st, 2015
to December 31st, 2015)
4,847

822

133

(39)

(20)

(2)

(106)

779
4,856

6
4,854

4,856

4,854

(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)
On October 1st, 2015, Fukuda Denshi conducted a share exchange with Fukuda Denshi as thewholly-owning parent company and Atomic Sangyo Co., Ltd. (hereinafter referred to as “Atomic Sangyo”)
as a wholly-owned subsidiary and Fukuda Denshi allotted treasury stock for the share exchange. With thisshare exchange, “Capital surplus” increased 12,285 million yen and “Treasury stock” decreased 9,610
million yen.
Also Atomic Sangyo, which has owned common shares of Fukuda Denshi, became a wholly-owned
subsidiary of Fukuda Denshi from this share exchange, “Treasury stock” increased 13,262 million yen at theend of the third quarter under review.
As a result “Capital surplus” were 22,340 million yen and “Treasury stock” were 18,386 million yen at theend of the third quarter under review.

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

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