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 Year Ended March 31, 2020
(Based on Japanese GAAP)May 15, 2020
Company name:

DAIKEN MEDICAL CO., LTD.

Stock exchange listing: Tokyo
Stock code:
7775
Representative:
Inquiries:

URL

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

President
Keiichi Yamada
General Manager, Business Control Division Kenji TamamakiScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 22, 2020
June 22, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 8, 2020
Yes

Holding of financial results meeting:

NoTEL

06-6231-9917(Amounts less than one million yen are rounded down)
1. Non-consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended March 31, 2020
Year ended March 31, 2019

Millions of yen
8,523
8,406

Operating profit% Millions of yen
1.4
1,194(2.1)
1,249

Diluted earnings pershare
YenYen
29.92
–
29.05
–Earnings per share
Year ended March 31, 2020
Year ended March 31, 2019

Ordinary profit% Millions of yen(4.4)
1,210(17.0)
1,245Profit% Millions of yen(2.9)
859(17.2)851%
0.9(15.9)

Ordinary profit/total Operating profit/net
assets
sales
%%%
14.5
11.0
14.0
13.7
11.3
14.9

Profit/equity(2) Non-consolidated financial position
Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
10,997
10,970Millions of yen
6,081
5,767

Cash flows fromoperating activities
Millions of yen
1,436
880

Cash flows frominvesting activities
Millions of yen
(160)
(208)

Net assets per share%
55.3
52.6

Yen
211.69200.77(3) Non-consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(1,128)2,365(822)
2,2172. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(Forecast)

Dividend payout Ratio of dividends
Total cashratio
to net assets
dividends (Total) (Non-consolidated)(Non-consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

–
–

10.00
9.00

–
–

10.00
11.00

20.00
20.00

580
574

68.8
66.8

9.4
9.7

–––––

1–3. Notes(1) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
No
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

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 March 31, 2020

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

3,111,559 shares

28,728,441 shares Year ended March 31, 2019

29,313,669 shares

Average number of shares during the period
Year ended March 31, 20202

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

As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes receivable - trade2,217,605
1,168,236

2,365,400
406,861

Electronically recorded monetary claims - operating
Accounts receivable - trade–1,425,902821,808
1,497,712

Finished goods
Work in process

992,486
101,724770,451
67,009Raw materials
Prepaid expenses

405,653
19,536335,991
18,237

Other
Allowance for doubtful accounts

14,987(86)

121,038(92)

6,346,047

6,404,420

2,168,485
2,467

2,104,782
2,105

Machinery and equipment, net
Vehicles, net

95,454
293

79,598163

Tools, furniture and fixtures, net
Land178,299
1,703,670

121,426
1,703,670

24,987
101,974

30,983
258,197

4,275,633

4,300,929

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

Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Software27,102

22,510Software in progress
Telephone subscription right–5,103

1,700
5,103

Total intangible assets

32,20529,3131010

Long-term prepaid expenses
Deferred tax assets

4,751
204,341

4,325
194,818

Guarantee deposits
Membership

97,583
17,50053,532
13,100Life insurance funds
Long-term accounts receivable - other

8,797
13,1508,797
13,150Investments and other assets
Investments in capital

Allowance for doubtful accounts(29,050)(24,650)

Total investments and other assets

317,083

263,083

4,624,922

4,593,325

10,970,969

10,997,746

Total non-current assets
Total assets3

(Thousands of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes payable - trade526,359554,793

310,450
1,100,000

411,674
800,000

Current portion of long-term borrowings
Accounts payable - other

803,998
213,640

898,032
234,311

Lease obligations
Accrued expenses

6,346
446,3818,992
445,687

Income taxes payableAccrued consumption taxes

146,665
13,243

180,854
90,789Deposits received
Notes payable - facilities

13,64259,092

12,337
95,405

Asset retirement obligations
Other

43,064
22,684–
49,796

Total current liabilities

3,705,570

3,782,673

Non-current liabilities
Long-term borrowings

1,459,924

1,091,892

Lease obligations
Long-term guarantee deposits

20,733
14,046

24,71314,066

Other

2,789

2,789

1,497,493

1,133,460

5,203,063

4,916,133

495,875

495,875

Legal capital surplus

400,875

400,875

Total capital surpluses

400,875

400,875

23,75023,750690,000
5,983,988

690,000
6,297,694

Accounts payable - trade
Short-term borrowings

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward

6,697,738

7,011,444

Treasury shares

Total retained earnings(1,826,582)(1,826,582)

Total shareholders' equity

5,767,905

6,081,612––

5,767,905

6,081,612

10,970,969

10,997,746

Share acquisition rights
Total net assets
Total liabilities and net assets

4Non-consolidated statements of income(Thousands of yen)

Net sales
Cost of sales
Beginning finished goods inventory
Cost of products manufactured
Cost of purchased goods
Cost of construction by the outside order
Total
Transfer to other accountEnding finished goods inventory
Total cost of sales

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

8,406,607

8,523,354

742,539
4,777,650

992,486
4,682,462

47,897
7,087

57,083
7,090

5,575,175

5,739,123113,993
992,486

179,000
770,451

4,468,694

4,789,671

Gross profit

3,937,913

3,733,682

Selling, general and administrative expenses

2,688,324

2,539,277

Operating profit

1,249,588

1,194,405

210Compensation income
Subsidy income

2,818
400

1,507
16,459

Other

2,758

2,369

Total non-operating income

5,998

20,336

4,764
4,822

4,551
–

Non-operating income
Interest income

Non-operating expenses
Interest expenses
Commission expenses
Other4

82

9,591

4,633

1,245,995

1,210,107

Gain on reversal of share acquisition rights

5,160

–

Total extraordinary income

5,160

–

Loss on retirement of non-current assets
Head Office transfer related cost

41,32556,157

18,997–

Total extraordinary losses

97,482

18,997

1,153,672

1,191,110

315,301

322,040

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes
Income taxes - current
Income taxes - deferred(13,228)

9,523

Total income taxes

302,072

331,563

Profit

851,600

859,547

5Non-consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of period

495,875

Legal capitalsurplus

Total capitalsurplus

Legal retained
earnings

400,875

400,875

23,750Retainedearnings
brought
forwardGeneralreserve
690,000

Total retained
earnings

5,905,903

6,619,653

Dividends of surplus(773,515)(773,515)

Profit

851,600

851,600

Changes during period

Purchase of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period–––––

78,08478,084495,875

400,875

400,875

23,750690,000

5,983,988

6,697,738

ShareacquisitionrightsTotal net assets

5,160

6,694,974

Shareholders' equity
TreasurysharesBalance at beginning of period(826,588)

Total
shareholders'equity6,689,814

Changes during period
Dividends of surplus(773,515)

ProfitPurchase of treasury shares(999,993)(773,515)

851,600

851,600(999,993)(999,993)

Net changes in items other thanshareholders' equity(5,160)(5,160)Total changes during period(999,993)(921,908)(5,160)(927,068)

Balance at end of period(1,826,582)

5,767,905–

5,767,905

6Fiscal year ended March 31, 2020
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of period

495,875

Legal capitalsurplus

Total capitalsurplus

Legal retained
earnings

400,875

400,875

23,750Retainedearnings
brought
forwardGeneralreserve
690,000

Total retained
earnings

5,983,988

6,697,738

Dividends of surplus(545,840)(545,840)

Profit859,547

859,547

Changes during period

Purchase of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

––––

–

313,706

313,706

495,875

400,875

400,875

23,750690,000

6,297,694

7,011,444

ShareacquisitionrightsTotal net assets

Shareholders' equity
Total
shareholders'equityTreasurysharesBalance at beginning of period(1,826,582)

5,767,905–

5,767,905

Changes during period
Dividends of surplus(545,840)(545,840)

Profit859,547

859,547

Purchase of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period–

313,706–

313,706(1,826,582)

6,081,612–

6,081,612

7

Non-consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

1,153,672

1,191,110

302,875(97)

253,178
6(21)
4,764

04,551

Decrease (increase) in trade receivables
Decrease (increase) in inventories

155,687(269,703)(132,243)
326,411

Increase (decrease) in trade payables
Head Office transfer related cost

(92,691)
56,157

129,657–

Loss on retirement of non-current assets
Gain on reversal of share acquisition rights

41,325(5,160)18,997–

Subsidy income
Decrease (increase) in accounts receivable - other(400)
15,134(16,459)(51,102)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses(65,291)(6,262)(62,039)(692)

Decrease/increase in consumption taxes receivable/payable
Other, net(53,372)(22,667)

78,733(54,075)

Depreciation
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses

Subtotal

1,213,948

1,686,034

Interest and dividends received
Interest paid

24(4,825)0(4,558)

Income taxes paid
Proceeds from subsidy income(345,806)
17,583(288,316)
43,745

Net cash provided by (used in) operating activities

880,925

1,436,905

Cash flows from investing activities
Purchase of property, plant and equipment(198,597)(162,262)

Purchase of intangible assets
Proceeds from refund of guarantee deposits(8,563)
7,836(6,900)44,467

Payments for asset retirement obligations
Other, net–(9,467)(35,800)(269)(208,792)(160,764)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings

1,000,000

600,000

Repayments of long-term borrowings
Purchase of treasury shares(645,668)(999,993)(873,998)–Dividends paid
Net increase (decrease) in short-term borrowings(773,338)
600,000(546,127)(300,000)

Repayments of lease obligations(3,739)(8,220)(822,739)(1,128,346)(150,606)

147,795Cash and cash equivalents at beginning of period

2,368,211

2,217,605

Cash and cash equivalents at end of period

2,217,605

2,365,400

Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents

8