Summary Report on Financial Results for Fiscal Year Ended March 2017
(Japan GAAP)May 12th, 2017
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)
June 29th, 2017
June 30th, 2017
June 29th, 2017
Yes
Yes (for analysts)

Scheduled date for the ordinary general meeting of shareholders:
Scheduled date for commencement of dividend payment:
Scheduled date for filing the securities report:
Supplementary material development:
Financial results meeting:(Amounts less than one million yen are rounded down)(The number with parenthesis shows negative figure)1. Consolidated financial results for fiscal year ended March 2017 (April 1st, 2016 through March 31st,2017)(1) Consolidated operating results
Net sales
millionyen%

Year ended
121,747
March 2017
Year ended
117,222
March 2016
(Note)Comprehensive income(% represent increases or decreases from the previous year)
Profit attributable toOperating profit
Ordinary profit
owners of parent
million%million%million
%
yen
yen
yen

3.9

12,062

13.3

12,201

11.6

8,776

19.1

8.3

10,6493.4

10,934

(3.8)

7,368

3.5

Fiscal year ended March 2017: 10,242 million yen / 130.0%(49.2) %Year ended
March 2017
Year ended
March 2016

Fiscal year ended March 2016: 4,453 million yen /%Ratio ofordinary profit
to total assets%

Ratio ofoperating profit
to net sales%

Earnings per
share

Diluted earnings
per share

Return on
equityyen

yen

575.51

-

8.5

8.6

9.9

505.49

-

7.8

8.4

9.1

(Reference) Profit or loss on equity method investments:
Fiscal year ended March 2017: - million yen
Fiscal year ended March 2016: - million yen(2) Consolidated financial situation
Total assets
Year ended
March 2017
Year ended
March 2016

Shareholders’equity ratio

Net assets

Net assets
per share

million yen

million yen%

yen

146,009

105,97372.6

6,964.31

137,164

99,83072.8

6,498.12(Reference) Shareholders’ equity:
Fiscal year ended March 2017: 105,973 million yen-1-

Fiscal year ended March 2016: 99,830 million yen

(3) Consolidated cash flows statement
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

million yen

million yen

million yen

Cash and cash
equivalents at theend of the year
million yen

15,693(8,306)(4,304)32,001

11,758(9,425)(2,260)28,962

Year ended
March 2017
Year ended
March 2016
2. Dividends

Annual Dividend
Total
Ratio ofEnd
of End of End
dividends Payout ratio dividends to net
End ofthethe(for the (consolidated)assetsthe first second
the Annual
third ofyear)
(consolidated)
quarter quarter quarterterm
yenYear ended
March 2016
Year ended
March 2017
Year ending
March 2018
(Forecast)

Yen

-

60.00

-

90.00

-

60.00

-

100.0
0

-

65.00

-

90.00

yen million yen
150.0
2,224
0
160.0
2,436
0
155.0
0

%

%

29.7

2.3

27.8

2.4

29.5

(Note)The detail of year-end dividend of Year ended March 2016; ordinary dividend 40.00 yen, extra dividend 50.00 yen
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 (Forecast); 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 throughMarch 31st, 2018)(% represent increases or decreases from the previous year)
Net sales

Operating profit

Ordinary profit

Profit attributableto owners ofparentFull-year

Earnings
per share

millionyen%

millionyen%

millionyen%

million
yen

%

yen

125,000

2.7

12,5003.6

12,500

2.4

8,000

(8.8)

525.74(Note)
Since the Group's operating results tend to take a peak at the fourth quarter and it is difficult to give aforecast every six months based on rational calculation, the consolidated forecast at the second quarter is
not disclosed.

-2-

※

Notes

(1) Changes in significant subsidiaries during the current fiscal year: No(2) Changes in accounting policies and procedures(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 “Change in accounting policies” on page 19.
(3) Number of outstanding shares (common shares)(i) Number of outstanding shares at the year-end (including “Treasury shares”)
Fiscal year ended March 2017: 19,588,000 sharesFiscal year ended March 2016: 19,588,000 shares(ii) Number of shares of treasury shares at the year-end:
Fiscal year ended March 2017: 4,371,392 sharesFiscal year ended March 2016: 4,225,003 shares(ⅲ) Average number of shares during the period
Fiscal year ended March 2017: 15,249,868 sharesFiscal year ended March 2016: 14,576,594 shares(Reference) Summary of non-consolidated financial results
Non-consolidated financial results for fiscal year ended March 2017 (April 1st, 2016 through March 31st,2017)(1) Non-consolidated operating results(% represent increases or decreases from the previous year)
Net sales
Operating profit
Ordinary profit
Profitmillion%million%million%million
%
yen
yen
yen
yen
Year ended
March69,819
3.6
7,584
48.6
10,692
42.0
9,147
61.2
2017
Year ended
March
67,4216.5
5,105(15.3)
7,529(14.0)
5,675
(2.0)
2016

yen

Diluted earnings per
share
yen

599.84-389.37-

Earnings per share
Year ended
March 2017
Year ended
March 2016

-3-

(2)

Non-consolidated financial position
Total assets

Net assets

Shareholders’ equity
ratio%

Net assets per
share
yen

million yen
million yen
Year ended
123,133
80,04665.0
5,260.49
March 2017
Year ended
109,436
74,00867.6
4,817.34
March 2016
(Reference) Shareholders’ equity:
Fiscal year ended March 2017: 80,046 million yen
Fiscal year ended March 2016: 74,008 million
yen* These financial statements are not subject to audit procedure.
* 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 varietyof reasons.
2. With respect to the preconditions for the forecast of financial results, please refer to “(4) Forecast of
results for fiscal year ending March 2018” under the “1. Operating results" section on page 8.

-4-Contents of the Attached Materials
1. Operating results--------------------------------------------------------------------------------------------

6(1) Overview of operating results-------------------------------------------------------------------------

6(2) Overview of financial situation-----------------------------------------------------------------------

7--------------------------------------------------------------------------------

7(3) Overview of cash flows(4) Forecast of results for fiscal year ending March 2018
(5) Business risks-------------------------------------------

8------------------------------------------------------------------------------------------

10

2. Basic policy on the selection of accounting standards------------------------------------------------

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

11-----------------------------------------------------------------------

11(2) Consolidated income statements (comprehensive) and consolidated statements ofcomprehensive income ---------------------------------------------------------------------------------

13(3) Consolidated statements of changes in net assets----------------------------------------------------

15----------------------------------------------------------------

17

3. Consolidated financial statements and Notes(1) Consolidated balance sheets(4) Consolidated statements of cash flows(5) Notes to Consolidated Financial Statement----------------------------------------------------------(Notes regarding the assumption for going concern)19---------------------------------------------------

19(Change in accounting policies)---------------------------------------------------------------------------

19(Segment information, etc.)-----------------------------------------------------------------------------

19----------------------------------------------------------------------------------

23(Per share information)(Significant subsequent events)
4. Others------------------------------------------------------------------------

23------------------------------------------------------------------------------------------------------

24(1) Changes of directors---------------------------------------------------------------------------------

-5-

24

1. Operating results(1) Overview of operating results(i) Overview of the business for the current consolidated fiscal year
Year ended
Year ended
Comparison with the previous year
March 2016
March 2017
Rate of change
AmountAmountChange(%)
Net sales
117,222
121,747
4,524
3.9(million yen)
Operating income
10,64912,062
1,412
13.3(million yen)
Ordinary income
10,934
12,201
1,266
11.6(million yen)
Profit attributable toparent company
7,368
8,776
1,408
19.1
shareholders(million yen)
Earnings per share
505.49575.51
70.02
13.9
(yen)
During the fiscal year ended March 2017, the Japanese economy is still recovering, but continues toface 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 121,747 million yen (up 3.9% year-on-yearbasis) for this consolidated fiscal year. “Operating profit” of 12,062 million yen (up 13.3% on a
year-to-year basis), “Ordinary profit” of 12,201 million yen (up 11.6% on a year-to-year basis), and“Profit attributable to owners of parent” of 8,776 million yen (up 19.1% on a year-to-year basis).
Fukuda Colin Co., Ltd.’s (formerly Omron Colin Co., Ltd.) result of the fourth quarter is included in
the scope for the current consolidated fiscal year.
(ii) Overview of each segment for the current consolidated fiscal year
Business segment

Physiologicaldiagnostic equipment
Patient monitoring
equipment
Medical treatment
equipment
Consumables and otherproducts
Total

Comparison with theprevious year
ChangeRate of(millionchangeyen)(%)

Year ended March 2016

Year ended March 2017

Amount(millionyen)

Ratio (%)

Amount(millionyen)

Ratio (%)

36,67731.3

36,881

30.3

204

0.6

9,012

7.7

9,085

7.5

73

0.8

45,97839.2

48,052

39.5

2,073

4.5

25,55421.8

27,727

22.8

2,173

8.5

117,222100.0

121,747

100.0

4,524

3.9

A. Physiological diagnostic equipment segment
Although sales of blood cell counters and other products declined, consolidated “Net sales” were
36,881 million yen (up 0.6% year-on-year basis) due to the addition of Fukuda Colin Co., Ltd. tothe consolidation.

-6-

B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment were 9,085 million yen (up 0.8%
year-on-year basis).
C. Medical treatment equipment segment
Sales of pacemakers, ventilators and the business of renting medical equipment for hometreatment increased.
As a result, consolidated “Net sales” were 48,052 million yen (up 4.5% 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.
As the sales increased toward the end of the term, consolidated “Net sales” for this segment were27,727 million yen (up 8.5% year-on-year basis).
(2) Overview of financial situation
Situation of the assets, liabilities and net assets at the consolidated fiscal year ended March 2017.
“Total assets” increased 8,845 million yen from the end of the previous fiscal year to reach 146,009
million yen. The main factors are the increase of 2,612 million yen in “Cash and deposits” and 4,177
million yen in “Notes and accounts receivable - trade”.
“Total liabilities” increased 2,702 million yen from the end of the previous fiscal year to reach 40,036
million yen. The main factor is the increase of 6,061 million yen in “Electronically recorded obligations- operating” and 606 million yen in “Lease obligations”, despite a decrease of 3,633 million yen in“Notes and accounts payable-trade”.
“Net assets” increased 6,142 million yen from the end of the previous fiscal year to reach 105,973
million yen. The main factors are the increase of 6,477 million yen in “Retained earnings” and 1,157
million yen in “Treasury shares” at the end of current period.
(3) Overview of cash flows(ii) Consolidated cash flows
Year ended March
2016
Cash flows from operating
activities (million yen)
Cash flows from investing
activities (million yen)
Cash flows from financing
activities (million yen)
Effect of exchange rate changes(million yen)
Increase (decrease) in cash andcash equivalents (million yen)
Increase in cash and cash
equivalents resulting from shareexchanges
Cash and cash equivalents at theend of the fiscal year (million
yen)Year ended March
2017

Change11,75815,693

3,935(9,425)(8,306)

1,119(2,260)(4,304)(2,044)

(15)

(43)

(28)

57

3,039

2,981

4,715

-

(4,715)28,96232,001

3,039(Cash flows from operating activities)
In the consolidated fiscal year, the “Cash flows from operating activities” were 15,693 million yen,
up 3,935 million yen from the previous year. Including “Profit before income taxes” of 12,072 million
yen, “Depreciation” of 7,070 million yen.

-7-

(Cash flows from investing activities)“The cash flows from investing activities” were minus 8,306 million yen, up 1,119 million yen fromthe previous year. Including purchase of “Property, plant and equipment” amounted to 7,689 million
yen.
(Cash flows from financing activities)“The cash flows from financing activities” were minus 4,304 million yen, down 2,044 million yen
from the previous year, mainly because of the “Cash dividends paid” of 2,291 million yen and the“Purchase of treasury shares” of 1,910 million yen.
As a result, “Cash and cash equivalents at the end of the fiscal year” was 32,001 million yen, up
3,039 million yen compared to the end of the previous fiscal year.
(Reference) Trends in cash flow indicators
Year ended
Year ended
March 2013
March 2014
Shareholders’ equity
71.6
67.7
ratio (%)
Market value-based
45.9
52.5
shareholders’ equity
ratio (%)
Years needed to repay
0.2
0.3
debts
Interest coverage ratio

450.9

Year ended
March 2015

Year ended
March 2016

Year ended
March 2017

71.4

72.8

72.6

75.5

66.1

66.4

0.1

0.2

0.1

461.7

422.2

543.7

403.4

Note: Shareholders’ equity ratio = Shareholders’ equity / Total assets
Market value-based shareholders’ equity ratio = Market capitalization /Total assets
Years needed to repay debts = Interest-bearing debts / Operating cash flows
Interest coverage ratio = Operating cash flows / Interest payments*Each indicator is calculated using consolidated financial data.
*Market capitalization is calculated by multiplying shares closing prices at the end of the fiscal year by
the number of outstanding shares (excluding treasury shares) at the end of the fiscal year.
*Interest-bearing debts represent total debts recorded in the consolidated balance sheets on whichinterest is paid.
*For interest payments, data on interest expenses in the consolidated cash flow statement are used.
(4) Forecast of results for fiscal year ending March 2018Year ended
Year ending
March 2017
March 2018
AmountNet sales(million yen)
Operating profit(million yen)
Ordinary profit(million yen)
Profit attributable toowners of parent(million yen)
Earnings per share(yen)

AmountComparison with the previous year
Rate of change(%)

Change121,747

125,000

3,252

2.7

12,062

12,500437

3.6

12,201

12,500

298

2.4

8,776

8,000

(776)

(8.8)

575.51525.74(49.77)

(8.6)

-8-

Regarding the future of Japan’s economy, it is expected to continue to gradually recover. We at the
Fukuda Denshi Group (herein after “the Group”), inspired by our corporate philosophy, remain dedicatedto contribute to medical progress and healthcare in general in accordance with our social mission.
The Group expects a consolidated “Net sales” of 125,000 million yen, consolidated “Operating profit”
of 12,500 million yen, consolidated “Ordinary profit” of 12,500 million yen, and consolidated “Profit
attributable to owners of parent” of 8,000 million yen for the fiscal year ending March 2018.
Forecast shown in this material are just an outlook judged or assumed based on the information available
at the moment, changes will be promptly disclosed when necessary.

-9-(5) Business risks(i) Effect of medical administration
The Japanese Government has been pushing forward with its policies of improving the quality of
medical care and curtailing the medical costs, and the remuneration for medical services, and theofficial reimbursement prices for drugs and specific insurance medical materials are revised every
two years. Changes in the governmental health care policies may lead to intensified competition
within the market and lowered sales prices, thus adversely affecting the operating results andfinancial standing of the Group.
(ii) Legal regulations
The manufacture and sales of medical equipment are subject to regulations prescribed in the
Pharmaceutical Affairs Law, and it may take a certain period of time for a new medical equipment to
be investigated and finally approved for sale. In addition, some medical equipment requires clinical
trials, thus taking a long period of time before it is launched in the market.
If the current regulations are revised, new ones are introduced, or any other unpredictable
regulatory change is made in the future, it is likely that this will adversely affect the operating results
and financial standing of the Group.
(iii) High dependence on certain business partners with which continuation of transactions is unsure
The Group imports and sells ventilators, pacemakers, defibrillators and other devices andequipment. If any problem arises that will make it impossible to continue stable transactions with theexporters, the operating results and financial standing of the Group will be adversely affected. To
prevent this, sufficient care has been taken not to depend too heavily on a few specific companies forthe supply of those equipment.
(iv) Product quality
The Group manufactures the products under a rigorous quality control system that is strictly in
conformance with the international standards including ISO. If any quality problem arises due tounforeseen failure or defect of a product, suspension of sale and recall of such product may beordered by the authorities concerned, adversely affecting the operating results and financial standingof the Group.
(v) Risks accompanying overseas businesses
The Group not only supplies products to distributors overseas, but also has its own overseas sales,development and production bases. Hence, it is possible that unforeseen changes to laws andregulations or new ones are introduced in foreign countries, as well as terrorist acts, natural disasters,
or other incidents could adversely affect the Group’s business performance and financial position.
(vi) Fluctuations in foreign exchange rates and others
The Group has subsidiaries in foreign countries and is procuring and importing products and raw
materials from overseas companies. In case, rapid fluctuations in foreign exchange rates could
adversely affect the Group’s business performance and financial position.
(vii) Impairment accounting
In case that “Impairment losses” is needed to book for the assets of the Group, it is possible that it
could adversely affect the Group’s business performance and financial position.
(viii) Effects to the group from tremendous disaster
The Group has domestic and oversea bases; if an earthquake, electric-power shortages or any otherincidents occurs, it is possible that it could adversely affect the Group’s business performance andfinancial position.
2. Basic policy on the selection of accounting standards
The Group decided to adopt the Japanese accounting standards for the time being, because the Group’sbusiness is based chiefly in Japan. We will consider implementing the IFRS (International Financial
Reporting Standards) in an appropriate manner in light of the movement toward its adaption both at home
and abroad.

- 10 -

3. Consolidated financial statements(1) Consolidated balance sheets
Previous fiscal year
(as of March 31st, 2016)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation andimpairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation andimpairment loss
Machinery, equipment andvehicles, net
Tools, furniture and fixtures
Accumulated depreciation andimpairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation andimpairment loss
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Insurance funds
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 11 -(Million yen)
Current fiscal year
(as of March 31st, 2017)

34,76834,066
1,647
8,917
95
2,140
1,739
1,422
(21)
84,77737,381
38,243
1,171
10,090
131
2,053
1,508
1,513
(20)
92,072

11,063

11,779(5,922)(6,254)

5,141
1,173

5,524
1,180

(820)

(885)

352

294

29,62632,376(18,891)(20,436)

10,734
9,082
927

11,940
9,055
1,736

(498)

(1,198)429
397
26,138
2,545

538
359
27,713
2,288

9,144
1,690
10,9202,008(61)
23,702
52,386
137,164

9,624
1,262
11,661
1,447(60)
23,93453,936
146,009(Million yen)Previous fiscal year
(as of March 31st, 2016)
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations operating
Short-term loans payable
Current portion of long-term loans
payableLease obligations
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Provision for directors' retirement
benefits
Provision for management board
incentive plan trust
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
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- 12 -

Current fiscal year
(as of March 31st, 2017)

22,370-18,736
6,061

1,850
45

1,850
45

148
1,871
2,054
183
490
4,157
33,172

177
910
2,503
203
219
4,383
35,090

63
357
222

18
935
230

-

27

2,504
1,013
4,161
37,333

2,652
1,081
4,945
40,036

4,621
22,34091,493(18,386)
100,069

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

774

1,761

(195)

(192)

(817)

(340)

(238)

1,227

99,830137,164

105,973
146,009(2) Consolidated income statements and consolidated comprehensive income statements
Consolidated income statements(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission for insurance office work
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
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
Loss on valuation of investment
securities
Retirement benefit expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to owners of parent

Previous fiscal year
(from April 1st, 2015
to March 31st, 2016)
117,222
68,61548,606

Current fiscal year
(from April 1st, 2016
to March 31st, 2017)
121,747
71,64950,097

37,95638,035

10,64912,062

69
129
58
153
410

67
134
51
149
402

27
67
8
22
126
10,934

28
168
24
41
263
12,201

3
349
12
364

3
962
965

0
15

0
415

-

147

16
11,282
3,613
301
3,914
7,368
7,368

508
22
1,094
12,072
3,059
236
3,296
8,776
8,776

- 13 -

Consolidated comprehensive income statements(Million yen)

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

Previous fiscal year
(from April 1st, 2015
to March 31st, 2016)
7,368

Current fiscal year
(from April 1st, 2016
to March 31st, 2017)
8,776(1,389)

986

(43)

3

(1,481)476(2,914)
4,453

1,466
10,242

4,453

10,242- 14 -

(3) Consolidated statements of changes in net assets
Previous fiscal year (from April 1st, 2015 to March 31st, 2016)(Million yen)

Shareholders' equity
Capitalstock
Balance at beginning of current
periodChanges of items during period

Capitalsurplus

4,621

Retainedearnings

10,055

Dividends of surplus
Employees’
bonusesandwelfare funds
Profit attributable to owners ofparent86,369(14,731)

86,315(2,232)(2,232)

(11)

(11)

7,368

7,368

Purchase of treasury shares
Disposal of treasury shares
Adjustment of the reserve due
to change in tax rate
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

Totalshareholders'equityTreasuryshares(13,265)(13,265)

9,610

21,895

12,285(0)(0)-

12,285

5,124(3,655)

13,753

4,621

22,34091,493(18,386)

100,069

Accumulated other comprehensive income

Balance at beginning of current
periodChanges of items during period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

2,164

(152)

Remeasureme
nts of defined
benefit plans

664

Total
accumulated
othercomprehensive
income2,676

Total net
assets

88,991(2,232)

Dividends of surplus
Employees’
bonusesandwelfare funds
Profit attributable to owners of

(11)
7,368

parentPurchase of treasury shares(13,265)

Disposal of treasury shares
Adjustment of the reserve due
to change in tax rate
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

21,895(0)(1,389)(43)(1,481)(2,914)(2,914)(1,389)(43)(1,481)(2,914)

10,839

774

(195)

(817)

(238)

99,830- 15 -

Current fiscal year (from April 1st, 2016 to March 31st, 2017)(Million yen)

Shareholders' equity
Capitalstock
Balance at beginning of current
periodCapitalsurplus

4,621

Retainedearnings

22,340Total
shareholders'equityTreasuryshares91,493(18,386)

100,069

Changes of items during period
Dividends of surplus
Employees’
bonusesandwelfare funds
Profit attributable to owners ofparent(2,295)(2,295)

(4)

(4)

8,776

8,776

Purchase of treasury shares
Disposal of treasury shares
Adjustment of the reserve due
to change in tax rate
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period(643)(1,910)(1,910)

753

109

-

(643)

6,477

(1,157)

4,676

4,621

21,696

97,970(19,543)

104,745

Accumulated other comprehensive income

Balance at beginning of current
periodChanges of items during theperiodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

774

(195)

Remeasureme
nts of defined
benefit plans

(817)

Total
accumulated
othercomprehensive
income(238)

Total net
assets99,830(2,295)

Dividends of surplus
Employees’
bonusesandwelfare funds
Profit attributable to owners of

(4)
8,776

parentPurchase of treasury shares(1,910)

Disposal of treasury shares

109

Adjustment of the reserve due
to change in tax rate
Net changes of items other thanshareholders’ equity
Total changes of items during
period

986

3

476

1,466

1,466

986

3

476

1,466

6,142

Balance at end of current period

1,761

(192)

(340)

1,227

105,973- 16 -

(4) Consolidated statements of cash flows(Million yen)
Current fiscal year
(from April 1st, 2016
to March 31st, 2017)

Previous fiscal year
(from April 1st, 2015
to March 31st, 2016)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for
doubtful accounts
Increase (decrease) in provision forbonuses
Increase (decrease) in provision for
directors' bonuses
Increase (decrease) in provision for
product warranties
Increase (decrease) in net defined benefit
liability
Increase(decrease) in provision for
management board incentive plan trust
Increase (decrease) in provision for
directors' retirement benefits
Interest and dividend income
Interest expenses
Loss (gain) on sales of non-current
assetsLoss (gain) on valuation of investment
securities
Loss (gain) on cancellation of insurance
contract
Decrease (increase) in notes andaccounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes andaccounts payable-trade
Increase (decrease) in accrued
consumption taxes
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating
activities- 17 -

11,282
6,586
15

12,072
7,070
415

46

(5)

13

366

9

20

120

(270)

56

560

-

27

15

8

(197)
27

(201)
28

(2)

(3)

-

147

(349)

(962)

(1,282)(2,109)

(279)

213

(157)

1,458

(655)

(50)

305
15,554198(27)(3,967)844
19,630201(28)(4,108)11,75815,693

(Million yen)
Current fiscal year
(from April 1st, 2016
to March 31st, 2017)

Previous fiscal year
(from April 1st, 2015
to March 31st, 2016)
Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant andequipment
Purchase of intangible assets
Purchase of short-term and long-term
investment securities
Proceeds from sales of short-term andlong-term investment securities
Purchase of insurance funds
Proceeds from maturity of insurance
funds
Investments in capital of unconsolidated
subsidiaries
Purchase of shares of subsidiaries
resulting in change in scope of
consolidation
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Repayments of long-term loans payable
Purchase of treasury shares
Proceeds from sales of treasury shares
Cash dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash
and cash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodIncrease in cash and cash equivalents
resulting from share exchanges
Cash and cash equivalents at end of period- 18 -

200

1,426(6,670)(7,689)

(725)

(447)

(867)

(1,514)

300

2,372

(2,361)(2,151)

1,284

2,437

-

(248)

-

(1,839)

(585)

(650)

(9,425)(8,306)(22)(3)(2,095)(139)(45)(1,910)107(2,291)(165)(2,260)(4,304)

(15)

(43)

57

3,039

24,18928,962

4,715-

28,96232,001

(5) Notes to Consolidated Financial Statement(Notes regarding the assumption for going concern)
Not applicable(Change in accounting policies)(Application of the Practical Solution on Change in Depreciation Method due to the 2016 Tax Reform)
Regarding the amendment of the Corporation Tax Act, the Company has applied the Practical Solution
on Change in Depreciation Method due to the 2016 Tax Reform (Practical Issue Task Force (PITF) No.32
issued on June 17th, 2016) from the current fiscal year. Accordingly, the Company changed thedepreciation method for buildings and accompanying facilities and structures acquired on and after April
1st, 2016 from a declining-balance method to a straight-line method.
The effect of this change in accounting policies to the consolidated financial statements is minimal.
(Segment information, etc.)
a. Segment information
1. Reportable Segments
The reportable segments of the Group are the constituent units of the Group for which separate
financial information can be obtained, and they are the subject of regular examinations by the Boardof Directors aimed at helping the board to decide the allocation of management resources andevaluate the performance of the Group.
The Group has set up divisions for each product and service in the corporate headquarters, andeach of the divisions formulates comprehensive strategies for the product or service it handles, anddevelops its own business activities.
We have 4 reportable segments based on our headquarter divisions which are “Physiologicaldiagnostic equipment segment”, “Patient monitoring equipment segment”, “Medical treatment
equipment segment”, and “Consumables and other products segment”.
In the “Physiological diagnostic equipment segment”, we mainly handle electrocardiographs,
ultrasound diagnostic imaging systems and blood cell counters. In the “Patient monitoring
equipment segment”, we handle patient monitors. In the ”Medical treatment equipment segment”,
we mainly handle defibrillators, ventilators, pacemakers, catheters, and business of renting medical
equipment for home treatment. In the “Consumables and other products segment”, we mainly handle
consumables used for devices handled by the above segments, as well as maintenance and repair
services.
2. Methods to calculate the sales, gains (or losses), assets, liabilities and other numbers of thereportable segments
The accounting policies for the reportable segments are basically the same as those described in“Basic significant matters regarding the preparation of consolidated financial statements”.
Reported segment profit is based on the amount of “Operating profit”.
(Application of the Practical Solution on Change in Depreciation Method due to the 2016 Tax
Reform)Regarding the amendment of the Corporation Tax Act, the Company has applied the Practical
Solution on Change in Depreciation Method due to the 2016 Tax Reform (Practical Issue Task
Force (PITF) No.32 issued on June 17th, 2016) from the current fiscal year. Accordingly, theCompany changed the depreciation method for buildings and accompanying facilities and structuresacquired on and after April 1st, 2016 from a declining-balance method to a straight-line method.
The effect of this change in accounting policies to the reported segment profit is minimal.

- 19 -

3. Information regarding sales, gains (or losses), assets, liabilities and other amounts by reportablesegments(i) Previous fiscal yearstst（Million yen)(from April 1 , 2015 to March 31 , 2016)
Reporting Segments
Total

Adjustments*1

Consolidated
financialstatements*2

25,554

117,222-

117,222

-

-

-

-

-

9,012

45,97825,554

117,222-

117,222

Physiologicaldiagnostic
equipment

Patient
monitoring
equipment

Medicaltreatment
equipment

Consumables
and otherproducts

36,677

9,012

45,978--36,677

Net sales
Sales toexternalcustomers
Internal sales
or transfers

Total
Segment profit
Segment
assetsOther items

2,254

682

5,394

2,318

10,649-10,64919,785

6,277

34,53014,29474,88762,276

137,164

Depreciation

612

150

5,395

426

6,586

-

6,586

Increase in
Property, plantand equipment
and intangible
assets

648

159

5,925

451

7,184

-

7,184

*1.

Adjustment of segment assets of 62,276 million yen include extra investment funds (cash etc.), long-term
investments (“Investment securities” etc.), and etc. which does not allocated to each reportable segments*2. Segment profit equals to “Operating profit” of consolidated financial statements.

- 20 -

(ii) Current fiscal year

(from April 1st, 2016 to March 31st, 2017)
Reporting Segments（Million yen)
Consolidated
Adjustments
financial*1statements*2

Physiologicaldiagnostic
equipment

Patient
monitoring
equipment

Medicaltreatment
equipment

Consumables
and otherproducts

36,881

9,085

48,052

27,727

121,747-

121,747

-

-

-

-

-

-

-

36,881

9,085

48,052

27,727

121,747-

121,747

Segment profit
Segment
assetsOther items

2,467

687

6,014

2,892

12,062-

12,062

20,9996,827

38,114

15,924

81,86564,143146,009

Depreciation

629

153

5,812

473

7,070

-

7,070

641

156

7,274

482

8,555

-

8,555

Total

Net sales
Sales toexternalcustomers
Internal sales
or transfers
Total

Increase in
Property, plantand equipment
and intangible
assets*1.

Adjustment of segment assets of 64,143 million yen include extra investment funds (cash etc.), long-term
investments (“Investment securities” etc.), and etc. which does not allocated to each reportable segments*2. Segment profit equals to “Operating profit” of consolidated financial statements.

b. Related Information(i) Previous fiscal year (from April 1st, 2015 to March 31st, 2016)
1. Information about each products and services
Information about each products and services is omitted, as categories of products and services are
identical to segment information.
2. Information by geographical area
(1) Sales
Information about “Sales” is omitted because our domestic “Sales” accounted for more than 90% ofconsolidated “Sales”.
(2) Property, plant and equipment
Information about “Property, plant and equipment” is omitted because domestic “Property, plantand equipment” accounted for more than 90 % of “Property, plant and equipment” of consolidated“Property, plant and equipment ".
3. Information by each major customer
Information about each major customer is omitted because “Sales” for each major customer
accounted for less than 10 % of consolidated “Sales”.

- 21 -

(ii) Current fiscal year (from April 1st, 2016 to March 31st, 2017)
1. Information about each products and services
Information about each products and services is omitted, as categories of products and services are
identical to segment information.
2. Information by geographical area
(1) Sales
Information about “Sales” is omitted because our domestic “Sales” accounted for more than 90% ofconsolidated “Sales”.
(2) Property, plant and equipment
Information about “Property, plant and equipment” is omitted because domestic “Property, plant andequipment” accounted for more than 90 % of “Property, plant and equipment” of consolidated“Property, plant and equipment”.
3. Information by each major customer
Information about each major customer is omitted because “Sales” for each major customer
accounted for less than 10 % of consolidated “Sales”.
c. Information about impairment loss for noncurrent assets by reportable segments(i) Previous fiscal year (from April 1st, 2015 to March 31st, 2016)（Million yen)

Impairment
loss

Physiologicaldiagnostic
equipment

Patient
monitoring
equipment

Medicaltreatment
equipment

Consumables
and otherproducts

Elimination/ Corporate

Total

1

0

2

1

9

15

(ii) Current fiscal year (from April 1st, 2016 to March 31st, 2017)（Million yen)

Impairment
loss

Physiologicaldiagnostic
equipment

Patient
monitoring
equipment

Medicaltreatment
equipment

Consumables
and otherproducts

Elimination/ Corporate

Total

133

72

83

62

64

415

d. Information about amortization and depreciation expense on goodwill of each reportable segment(i) Previous fiscal year (from April 1st, 2015 to March 31st, 2016)
Not applicable(ii) Current fiscal year (from April 1st, 2016 to March 31st, 2017)
In the “Physiological diagnostic equipment”, “Patient monitoring equipment”, “Medical treatment
equipment”, and “Consumables and other products”, the “Impairment loss” of 149 million yen is counted
by the acquisition of shares of Fukuda Colin.
e. Information about gain on negative goodwill of each reportable segment(i) Previous fiscal year (from April 1st, 2015 to March 31st, 2016)
In the “Consumables and other products”, regarding the share exchange, we made Fukuda Denshi as
the wholly-owning parent company and Atomic Sangyo as a wholly-owned subsidiary, resulting in anegative goodwill of 11 million yen in “Extraordinary income” for the previous fiscal year to berecorded.

- 22 -

(ii) Current fiscal year (from April 1st, 2016 to March 31st, 2017)
Not applicable(Per share information)
Previous fiscal year

Current fiscal year

(from April 1st, 2015
to March 31st, 2016)(from April 1st, 2016
to March 31st, 2017)

Net assets per share

6,498.12 yen

6,964.31 yen

Earnings per share

505.49 yen

575.51 yen

Not stated, as there is no potential
dilution.

Not stated, as there is no potential
dilution.

Fully diluted earnings per
share

Note: (i) The shares of Trust & Custody Services Bank, Ltd. owns are included in the number of our“Treasury share”(49 thousand shares at the start of the fiscal year and 66 thousand shares at the end of
the fiscal year), which is excluded from the “Number of shares at the end of the current fiscal year”,
which is used to calculate the “Net assets per share”.
It is also included in the number of our “Treasury share”(49 thousand shares at the start of the fiscal
year and 66 thousand shares at the end of the fiscal year), which is excluded from the calculation of“Average number of shares during the period”, which is used to calculate the “Net income per share”.
(ii) The basis for calculation of earnings per share:
Item

Previous fiscal year

Current fiscal year

(from April 1st, 2015
to March 31st, 2016)(from April 1st, 2016
to March 31st, 2017)

Profit attributable to parent
company shareholders(million yen)Amount not belonging toordinary shareholders (million
yen)Profit attributable to parent
company shareholders in
relation to common shares(million yen)
Average number of shares
during the fiscal year (1,000
shares)(Significant subsequent events)
Not applicable- 23 -

7,368

8,776

-

-

7,368

8,776

14,576

15,249

4. Others(1)Changes of directors(i) Representative Director
Not applicable(ii) Other directors
・Directors to retire
Directors: Mr. Izumi Tsubone
・Effective from
June 29th, 2017
* This English translation is for reference purposes only. The original Japanese version will prevail as theofficial authoritative version.

- 24 -