Summary Report on Financial Results for the Second Quarter of the Year Ending March 2019
(Japan GAAP)
October 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 (main)
Scheduled date for filing the quarterly report:
November 14th, 2018
Scheduled date for commencement of dividend payment:
December 10th, 2018
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 2019 (April 1st, 2018 throughSeptember 30th, 2018)(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
58,062
(1.3)
5,434
(9.9)
5,941
(3.9)
4,393
(13.3)
year ending March 2019
Second quarter of the58,855
8.8
6,031
14.0
6,185
26.1
5,068
8.4
year ended March 2018
(Note) Comprehensive income
Second quarter of the year ending March 2019:4,292 million yen / (19.6) %Second quarter of the year ended March 2018: 5,335 million yen / 4.6 %Earnings
per shareyen

Diluted earnings
per shareyen

288.73―333.09―Second quarter of theyear ending March 2019
Second quarter of theyear ended March 2018
(2) Consolidated financial situation

million yen

million yen

Shareholders'equity ratio％

Second quarter of theyear ending March 2019

150,414

115,93177.1

7,618.30

Year ended March 2018

157,518

113,25271.9

7,442.43

Total assets

Net assets(Reference) Shareholders' equity:
Second quarter of the year ending March 2019:115,931 million yen
Year ended March 2018:
113,252 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
―
65.00
―
105.00170.00March 2018Year ending―
70.00
March 2019Year ending
March 2019―100.00170.00(forecast)(Note) Revisions to recent dividend forecast: None
The detail of second quarter dividend of Year ended March 2018; ordinary dividend 50.00 yen, extra dividend
15.00 yen
The detail of year-end dividend of Year ended March 2018; 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 2019; ordinary dividend 55.00 yen, extra dividend
15.00 yen
The detail of year-end dividend of Year ending March 2019 (Forecast); ordinary dividend 60.00 yen, extra
dividend 40.00 yen
3. Forecast of consolidated financial results for fiscal year ending March 2019 (April 1st, 2018 through March
31st, 2019)(% represents increase or decrease from the previous year)

Net sales

Full-year

Operating Profit

millionyen%

millionyen%

130,000

0.9

12,4000.5

Ordinary
Profitmillion%yen
12,8000.7

Profit attributable toowners of parent
million
%
yen
9,200

Earnings
per share

(1.3)

yen
604.57(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 2019: 19,588,000 sharesYear ended March 2018: 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 2019: 4,370,493 sharesYear ended March 2018: 4,370,873 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Second quarter of the year ending March 2019: 15,217,247 shares
Second quarter of the year ended March 2018: 15,216,945 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 the
projections 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.

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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 ------------------------------------------------------------(3) Notes to consolidated quarterly financial statement

P.09--------------------------------------------------

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

P.09(Notes when there is a significant fluctuation in the amount of shareholders’ equity)-------------

P.09----------------------------------------------------------------------------------

P.09(Additional Information)-4-

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, theuncertainty in the overseas economy is high and uncertainty about the future remains.
In the medical device industry, the remuneration for medical treatments in FY2018 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 58,062 million yen (down 1.3% on a year-toyear basis), “Operating profit” of 5,434 million yen (down 9.9% on a year-to-year basis), “Ordinary profit”
of 5,941 million yen (down 3.9% on a year-to-year basis), and “Profit attributable to owners of parent” of
4,393 million yen (down 13.3% on a year-to-year basis) in the second quarter.
A. Physiological diagnostic equipment segment
While the sales of electrocardiographs and blood cell counter increased, number of large orders
decreased.
As a result, consolidated “Net sales” were 15,677 million yen (down 4.8% year-on-year basis).
B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment were 3,677 million yen (down 3.7% 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 24,580 million yen (up 0.4% 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 14,127 million yen (up 0.3% on a year-to-year basis).
(2) Explanation about consolidated financial situation“Total assets” were 150,414 million yen at the end of the second quarter under review, down 7,104
million yen from the end of the previous fiscal year.
The main factors are the decrease of 9,440 million yen in “Notes and accounts receivable-trade” despite
the increase of 773 million yen in “Property, plant and equipment”.
“Total liabilities” amounted to 34,482 million yen, down 9,783 million yen from the end of the previous
fiscal year.
The main factor is the decrease of 6,597 million yen in “Notes and accounts payable-trade” and 1,871
million yen in “Income taxes payable”.
“Net assets” were 115,931 million yen, up 2,679 million yen from the end of the previous fiscal year.
The main factor is the increase of 2,779 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, 2018.
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. Consolidated quarterly financial statements and Notes(1) Consolidated quarterly balance sheets
Previous fiscal year
(as of March 31st, 2018)
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
Net defined 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, 2018)

46,43939,202249
10,411
112
2,480
1,565
(41)
100,420

46,94829,761
249
10,691
157
2,850
1,843
(31)
92,47028,444
2,011

29,217
1,718

10,60416,092(55)
26,64257,098
157,518

10,94016,084(17)
27,00757,943
150,414

20,213

13,616

6,512

6,141

1,850

1,800

22

-

2,842
2,368
287
204
5,012
39,315

970
2,227
267
102
4,465
29,592

2,690
292
1,968
4,951
44,266

2,718
245
1,926
4,890
34,482

Previous fiscal year
(as of March 31st, 2018)
Net assets
Shareholders' equity
Capital stock
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, 2018)

4,621
21,696
104,768(19,542)
111,544

4,621
21,696
107,548(19,541)
114,324

2,120

2,007

(161)

(175)

(251)

(225)

1,708

1,606

113,252
157,518

115,931
150,414(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 partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in partnership
Other
Total non-operating expenses
Ordinary 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
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, 2017
to September 30th, 2017)58,85533,66625,189(Million yen)
Second quarter of theconsolidated term(from April 1st, 2018
to September 30th, 2018)
58,062
33,11624,94619,157

19,511

6,031

5,434

28
90
0
66
185

21
295
133
8
84
543

21
1
8
31
6,185

24
1
11
37
5,941

6
932
0
939

4
550
554

9
9
7,114
1,825
220
2,046
5,068
5,068

0
10
128
1
141
6,353
1,593
366
1,960
4,393
4,393

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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, 2017
to September 30th, 2017)
5,068(Million yen)
Second quarter of theconsolidated term(from April 1st, 2018
to September 30th, 2018)
4,393

261

(113)

(29)

(14)

35

25

266
5,335

(101)
4,292

5,335

4,292

(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.
(Additional Information)(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
The Company has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(Accounting Standards Board of Japan (ASBJ) Statement No. 28 issued on February 16th, 2018) from the firstquarter of the current fiscal year. Accordingly, the Company presents deferred tax assets under investments
and other assets.
* This English translation is for reference purposes only. The original Japanese version will prevail as the official
authoritative version.

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