Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Non-Consolidated Financial Results
for the Six Months Ended September 30, 2019
(Based on Japanese GAAP)
October 31, 2019
Company name:
DAIKEN MEDICAL CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

7775
President

URL

http://www.daiken-iki.co.jp
Keiichi Yamada

Inquiries:
General Manager, Business Control Division Kenji Tamamaki
Scheduled date to file Quarterly Securities Report:
November 1, 2019
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 2, 2019
Yes

Holding of quarterly financial results meeting:

Yes

TEL

06-6231-9917(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Non-consolidated financial results for the six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)(1) Non-consolidated operating results (cumulative)Percentages indicate year-on-year changes

Net sales
Six months ended September 30, 2019
Six months ended September 30, 2018

Millions of yen
4,248
4,195

Operating profit% Millions of yen
1.3
565
(0.9)
705

Earnings per share% Millions of yen(19.9)
579(15.3)
703

Profit% Millions of yen(17.5)
414(15.6)
485%(14.7)(5.1)

Diluted earnings per share

Yen
14.42
16.26

Six months ended September 30, 2019
Six months ended September 30, 2018

Ordinary profit

Yen––(2) Non-consolidated financial position
Total assetsNet assets

Millions of yen
10,972
10,970

As of September 30, 2019
As of March 31, 2019

Equity ratio

Millions of yen
5,894
5,767%
53.7
52.6

2. Cash dividends
Annual dividends per share

Year ended March 31, 2019Year ending March 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
10.00
9.00

Yen–

Yen
10.00

Yen
20.00

–

11.00

20.00

Year ending March 31, 2020 (Forecast)Total

3. Forecast of non-consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
8,500

Operating profit% Millions of yen
1.1
1,280

Ordinary profit% Millions of yen
2.4
1,300

1Profit% Millions of yen
4.3
870

Earnings per share%
2.2

Yen
30.28

4. Notes(1) Application of special accounting methods for preparing quarterly non-consolidated financial statements: Yes(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
NoChanges in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2019

31,840,000 shares As of March 31, 2019

31,840,000 shares

Number of treasury shares at the end of the period
As of September 30, 2019

3,111,559 shares As of March 31, 2019

3,111,559 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2019

28,728,441 shares Six months ended September 30, 2018229,862,672 shares

Quarterly non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of March 31, 2019

As of September 30, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade2,217,605
2,594,139

2,181,407
2,167,116

Electronically recorded monetary claims - operating
Finished goods–992,486

619,147
897,167

Work in process
Raw materials

101,724405,653

98,625386,598

Other
Allowance for doubtful accounts

34,524(86)

78,703(86)

6,346,047

6,428,679

2,168,485
1,703,670

2,131,733
1,703,670

Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Land
Other, net

403,477

362,552

4,275,633

4,197,957

Intangible assets

32,20528,703

Investments and other assets
Deferred tax assets

Total property, plant and equipment

204,341

204,341

Other
Allowance for doubtful accounts

141,793(29,050)

141,560(29,050)

Total investments and other assets

317,083

316,851

Total non-current assets
Total assets

3

4,624,922

4,543,512

10,970,969

10,972,191

(Thousands of yen)
As of March 31, 2019

As of September 30, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade895,902897,171

1,100,000
803,998

800,000
818,008

Income taxes payable
Accrued expenses

146,665446,381

188,171
501,388

Other

312,621200,093

3,705,570

3,404,834

Long-term borrowings
Other

1,459,924
37,5691,630,790
41,674

Total non-current liabilities

1,497,493

1,672,464

5,203,063

5,077,299

Shareholders' equity
Share capital

495,875

495,875

Capital surplus
Retained earnings

400,875
6,697,738

400,875
6,824,724

Treasury shares(1,826,582)(1,826,582)

Total shareholders' equity

5,767,905

5,894,892

Short-term borrowings
Current portion of long-term borrowings

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

Total net assets
Total liabilities and net assets

4

5,767,905

5,894,892

10,970,969

10,972,191

Non-consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months ended

September 30, 2018

September 30, 2019

Net sales
Cost of sales

4,195,813
2,172,066

4,248,918
2,388,028

Gross profit

2,023,746

1,860,889

Selling, general and administrative expenses

1,317,812

1,295,604

705,934

565,285

24277

0435

Compensation income
Subsidy income

1,090
200

609
15,781

Foreign exchange gains
Other

361
347

–
524

2,300

17,350Non-operating expenses
Interest expenses

2,296

2,425

Commission expenses
Other2,084
764–267

Operating profit
Non-operating income
Interest income
Gain on forfeiture of unclaimed dividends

Total non-operating income

Total non-operating expenses
Ordinary profit

5,144

2,692

703,090579,942

37,7770

Extraordinary losses
Loss on retirement of non-current assets

37,7770Profit before income taxes

Total extraordinary losses

665,312579,942

Income taxes

179,674

165,672

Profit485,638

414,2705

Non-consolidated statements of cash flows(Thousands of yen)Six months ended

Six months ended

September 30, 2018

September 30, 2019

Cash flows from operating activities
Profit before income taxes

665,312579,942

Depreciation
Interest and dividend income

149,009(24)

130,591(0)Interest expenses
Decrease (increase) in trade receivables

2,296
161,041

2,425(192,125)

Decrease (increase) in inventories
Increase (decrease) in trade payables(301,443)
24,047

117,474
47,563

762
––
(60)

37,777(200)

0(15,781)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses(143,351)(59,776)(80,166)
55,009Decrease/increase in consumption taxes receivable/payable
Other, net(44,489)(40,559)

38,650(42,956)

Subtotal

450,403

640,567Interest and dividends received
Interest paid

24(2,380)0(2,492)

Income taxes paid
Proceeds from subsidy income(158,820)
200(129,880)
9,715

Net cash provided by (used in) operating activities

289,427

517,909(97,026)(111,196)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

–
(975)

60
(2,048)

Payments for asset retirement obligations
Other, net–
7,549

(35,800)
585(90,453)(148,399)

Cash flows from financing activitiesProceeds from long-term borrowings

300,000

600,000

Repayments of long-term borrowings
Purchase of treasury shares(286,376)(565,554)(415,124)–Dividends paid
Net increase (decrease) in short-term borrowings(480,315)
400,000(287,320)(300,000)(1,793)(3,263)(634,038)(405,707)(435,064)(36,198)

Cash and cash equivalents at beginning of period

2,368,211

2,217,605

Cash and cash equivalents at end of period

1,933,146

2,181,407

Increase (decrease) in provision for bonuses
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Subsidy income

Cash flows from investing activities
Purchase of property, plant and equipment

Net cash provided by (used in) investing activities

Repayments of lease obligations
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents

6