Summary Report on Financial Results for the Third Quarter of the Year Ending March 2018
(Japan GAAP)
January 31st, 2018
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, 2018
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 2018 (April 1st, 2017 throughDecember 31st, 2017)(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
88,208
7.5
8,434
3.8
8,816
6.2
6,838
(1.5)
ending March 2018
Third quarter of the year
82,049
1.4
8,124
18.1
8,298
15.5
6,939
43.1
ended March 2017
(Note) Comprehensive income
Third quarter of the year ending March 2018:7,467 million yen / (11.0) %Third quarter of the year ended March 2017: 8,388 million yen / 72.8 %Earnings
per shareyen

Diluted earnings
per shareyen

449.39―454.76―

Third quarter of theyear ending March 2018
Third quarter of theyear ended March 2017(2) Consolidated financial situation

million yen

million yen

Shareholders'equity ratio％

Third quarter of theyear ending March 2018

145,085

110,92076.5

7,289.14

Year ended March 2017

146,009

105,97372.6

6,964.31

Total assets

Net assets(Reference) Shareholders' equity:
Third quarter of the year ending March 2018: 110,920 million yen
Year ended March 2017:
105,973 million yen-1-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―
60.00―
100.00160.00March 2017
Year ending―
65.00―
March 2018Year endingMarch 2018
90.00
155.00(forecast)(Note) Revisions to recent dividend forecast: None
The detail of second quarter dividend of Year ended March 2017; ordinary dividend 40.00 yen, extra dividend
20.00 yen
The detail of year-end dividend of Year ended March 2017; ordinary dividend 45.00 yen, extra dividend 50.00
yen, commemorative dividend 5.00 yen
The detail of second quarter dividend of Year ending March 2018; ordinary dividend 50.00 yen, extra dividend
15.00 yen
The detail of year-end dividend of Year ending March 2018 (Forecast); ordinary dividend 50.00 yen, extra
dividend 40.00 yen
3. Forecast of consolidated financial results for fiscal year ending March 2018 (April 1st, 2017 through March31st, 2018)(% represents increase or decrease from the previous year)

millionyen%

millionyen%

Ordinary
Profitmillion%yen

125,000

2.7

12,5003.6

12,500Net sales

Full-year

Operating Profit

2.4

Profit attributable toowners of parent
million%
yen
8,000

(8.8)

Earnings
per shareyen
525.73(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: 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 2018: 19,588,000 sharesYear ended March 2017: 19,588,000 shares-2-

(ii) Number of shares of treasury shares at the end of the period:
Third quarter of the year ending March 2018: 4,370,812 sharesYear ended March 2017: 4,371,392 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Third quarter of the year ending March 2018: 15,217,022 shares
Third quarter of the year ended March 2017: 15,259,856 shares* Summary Report on Financial Results for the Third Quarter is not subject to quarterly financial review.
* 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. Consolidated quarterly financial statements and Notes---------------------------------------------------

6--------------------------------------------------------------------

6(2) Consolidated quarterly income statements and consolidated quarterly comprehensive incomestatements

8(1) Consolidated quarterly balance sheets

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

8

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)9-----------------------------------------------------

9----------------------------------------------------------

9(Notes when there is a significant fluctuation in the amount of shareholders’ equity)-4-----------------

9

1. Qualitative information about consolidated earnings results for the quarter under review(1) Explanation about consolidated operating results
In the third quarter cumulative period, the Japanese economy is still recovering, but continues to face
uncertainties such as uncertainty in the overseas economies, the impact of the foreign exchange rates
fluctuations, and the influence from the downturn of the economy is a concern. There is still some anxiety
for the future.
In the medical device industry, the remuneration for medical treatments in FY2016 has been a negative
revision as a whole. Medical institutions face continuous demands for efficient and high-quality healthcare.
As a result, the Group posted a consolidated “Net sales” of 88,208 million yen (up 7.5 % on ayear-to-year basis), “Operating profit” of 8,434 million yen (up 3.8 % on a year-to-year basis), “Ordinaryprofit” of 8,816 million yen (up 6.2 % on a year-to-year basis), and “Profit attributable to owners of parent”
of 6,838 million yen (down 1.5 % on a year-to-year basis) in the third quarter.
A. Physiological diagnostic equipment segment
Consolidated “Net sales” were 23,817 million yen (up 9.2 % year-on-year basis) due to the additionof Fukuda Colin Co., Ltd. to the consolidation.
B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment were 6,025 million yen (down 1.7 %year-on-year basis).
C. Medical treatment equipment segment
The business of renting medical equipment for home treatment increased.
As a result, consolidated “Net sales” were 36,978 million yen (up 4.9 % 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 21,387 million yen (up 13.5 % on a year-to-yearbasis).
(2) Explanation about consolidated financial situation“Total assets” were 145,085 million yen at the end of the third quarter under review, down 923 million
yen from the end of the previous fiscal year.
The main factors are the decrease of 8,263 million yen in “Notes and accounts receivable-trade” despite
the increase of 5,705 million yen in “Cash and deposits” and 1,636 million yen in “Merchandise andfinished goods”.
“Total liabilities” amounted to 34,165 million yen, down 5,870 million yen from the end of the previous
fiscal year.
The main factor is the decrease of 4,788 million yen in “Notes and accounts payable-trade” and 1,331
million yen in “Provision for bonuses”.
“Net assets” were 110,920 million yen, up 4,947 million yen from the end of the previous fiscal year.
The main factor is the increase of 4,315 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 12 th, 2017.
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, 2017)
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
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 loans payable
Current portion of long-term loans
payableIncome taxes payable
Provision for bonuses
Provision for product warranties
Other provision
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Net defined benefit liability
Other provision
Other
Total non-current liabilities
Total liabilities-6-(Million yen)
End of the Third quarter
under review(as of December 31st, 2017)37,38138,243
1,171
10,090
131
2,053
3,021
(20)
92,07243,087
29,979174
11,727
239
2,676
3,056
(33)
90,907

27,713
2,288

28,151
2,070

9,624
14,370(60)
23,93453,936
146,009

10,832
13,180(57)
23,95554,177145,085

18,736

13,948

6,061

6,010

1,850

1,900

45

33

910
2,503
219
203
4,560
35,090

1,094
1,172
215
151
4,633
29,159

18
2,652
257
2,017
4,945
40,036

2,728
255
2,022
5,005
34,165

Previous fiscal year
(as of March 31st, 2017)
Net assets
Shareholders' equity
Capital stockCapital 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 Third quarter
under review(as of December 31st, 2017)

4,621
21,696
97,970(19,543)
104,745

4,621
21,696102,286(19,541)
109,062

1,761

2,322

(192)

(176)

(340)

(288)

1,2271,857

105,973
146,009110,920145,085

(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 partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on investments in partnership
Other
Total non-operating expensesOrdinary profit
Extraordinary income
Gain on sales of non-current assets
Surrender value of insurance
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on valuation of investment
securities
Office transfer expenses
Loss on litigation
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, 2016
to December 31st, 2016)
82,04946,79135,258(Million yen)
Third quarter of theconsolidated term(from April 1st, 2017
to December 31st, 2017)88,20850,93737,271

27,134

28,836

8,124

8,434

53
114
153
322

33
122
2
140
134
434

15
124
1
6
147
8,298

32
0
20
52
8,816

3
957
960

7
932
0
940

0
185

11147

-

333
8,925
1,729
256
1,986
6,939
6,939

36
22
70
9,685
2,670
177
2,847
6,838
6,838

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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, 2016
to December 31st, 2016)
6,939(Million yen)
Third quarter of theconsolidated term(from April 1st, 2017
to December 31st, 2017)
6,838

1,450

561

(137)

15

135

52

1,448
8,388

629
7,467

8,388

7,467

(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 theofficial authoritative version.

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