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, 2019
(Based on Japanese GAAP)May 15, 2019
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 17, 2019
June 17, 2019

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

June 3, 2019
Yes

Holding of 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 year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(1) Non-consolidated operating resultsPercentages indicate year-on-year changes
Net salesYear ended March 31, 2019Year ended March 31, 2018

Millions of yen
8,406
8,585

Operating profit% Millions of yen
(2.1)
1,249
2.2
1,505

Diluted earnings pershare
Yen
Yen
29.05
–
33.79
33.76

Earnings per share
Year ended March 31, 2019Year ended March 31, 2018

Ordinary profit% Millions of yen(17.0)
1,245(12.0)
1,504

Profit% Millions of yen(17.2)
851(12.3)
1,012%(15.9)(18.8)

Ordinary profit/total Operating profit/net
assetssales%%%
13.7
11.3
14.914.5
13.6
17.5

Profit/equity(2) Non-consolidated financial position
Total assets
As of March 31, 2019
As of March 31, 2018

Net assets

Equity ratio

Millions of yen
10,970
11,137

Millions of yen
5,767
6,694

Cash flows fromoperating activities
Millions of yen
880
1,255

Cash flows frominvesting activities
Millions of yen
(208)
(624)

Net assets per share%
52.6
60.1

Yen
200.77222.80(3) Non-consolidated cash flows

Year ended March 31, 2019Year ended March 31, 2018

Cash flows from
Cash and cash equivalents
at end of period
financing activitiesMillions of yen
Millions of yen(822)
2,217(581)2,368

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(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

%%

––

9.00
10.00

–
–

16.00
10.00

25.00
20.00

750
580

74.0
68.8

10.7
9.4

–

9.00–

11.00

20.00

166.1

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
Millions of yen
Six months ending
September 30, 2019
Full year

Operating profit% Millions of yen

Ordinary profit% Millions of yen

Profit% Millions of yen

Earnings per share%Yen

4,150

(1.1)

580

(17.8)

600(14.7)

400(17.6)

13.92

8,500

1.1

1,280

2.4

1,300

4.3

870

2.2

30.28

4. Notes(1) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2019

31,840,000 shares As of March 31, 2018

31,840,000 shares

Number of treasury shares at the end of the periodAs of March 31, 2019

3,111,559 shares As of March 31, 2018

1,813,257 shares

29,313,669 shares Year ended March 31, 2018

29,951,697 shares

Average number of shares during the period
Year ended March 31, 20192

Non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of March 31, 2018

As of March 31, 2019

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

2,368,211
1,235,843

2,217,605
1,168,236

Accounts receivable - tradeFinished goods

1,513,983
742,539

1,425,902
992,486

Work in process
Raw materials

77,225
410,395

101,724405,653

Prepaid expenses
Other

21,934
27,632

19,536
14,987

Allowance for doubtful accounts

(184)

(86)

6,397,581

6,346,047

2,236,975

2,168,485

Structures, net
Machinery and equipment, net

2,828
97,4152,467
95,454

Vehicles, net
Tools, furniture and fixtures, net

424
258,167

293
178,299

1,703,670
14,227

1,703,670
24,98780,376

101,974

4,394,085

4,275,633

SoftwareTelephone subscription right40,858
5,103

27,102
5,103

Total intangible assets

45,961

32,20510

10Long-term prepaid expenses
Deferred tax assets

2,049
191,113

4,751
204,341

Guarantee deposits
Membership

95,952
17,50097,583
17,500Life insurance funds
Long-term accounts receivable - other

8,797
13,1508,797
13,150Allowance for doubtful accounts(29,050)(29,050)

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

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

Investments and other assets
Investments in capital

Total investments and other assets
Total non-current assetsTotal assets

3299,522

317,083

4,739,569

4,624,922

11,137,150

10,970,969

(Thousands of yen)
As of March 31, 2018

As of March 31, 2019

Liabilities
Current liabilities
Notes payable - trade558,375

526,359

Accounts payable - trade
Short-term loans payable

371,126
500,000

310,450
1,100,000

Current portion of long-term loans payable
Accounts payable - other547,752
302,349

803,998
213,640

Lease obligations
Accrued expenses

3,586
452,6436,346
446,381

Income taxes payable
Accrued consumption taxes

181,886
66,615

146,665
13,243

Deposits received
Notes payable - facilities

23,14933,753

13,64259,092

Asset retirement obligations
Other–
10,20643,064
22,684

Total current liabilities

3,051,444

3,705,570

Non-current liabilities
Long-term loans payable

1,361,838

1,459,924

Lease obligations
Long-term guarantee deposited

11,897
14,026

20,733
14,046

Other

2,969

2,789

1,390,731

1,497,493

4,442,175

5,203,063

495,875

495,875

Legal capital surplus

400,875

400,875

Total capital surpluses

400,875

400,875

23,75023,750690,000
5,905,903

690,000
5,983,988

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

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

6,619,653

6,697,738

Treasury shares

Total retained earnings(826,588)(1,826,582)

Total shareholders' equity

6,689,814

5,767,905

5,160

–

6,694,974

5,767,905

11,137,150

10,970,969

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

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019

8,585,276

8,406,607

674,924
4,482,813

742,539
4,777,650

41,167
5,847

47,897
7,087

5,204,752

5,575,175

103,017742,539

113,993
992,486

4,359,195

4,468,694

Gross profit

4,226,081

3,937,913Selling, general and administrative expenses

2,720,318

2,688,324

Operating profit

1,505,763

1,249,588

129

21

Dividend income
Gain on forfeiture of unclaimed dividends

112827–425

Foreign exchange gains
Compensation income

1,111
619

127
2,818

Subsidy income
Other

200
850

400
2,205

3,850

5,998

Non-operating expenses
Interest expenses

4,363

4,764

Commission expenses
Other

200
623

4,822
4

5,187

9,591

1,504,426

1,245,995

Extraordinary income
Reversal of allowance for doubtful accounts

2,450–

Gain on sales of investment securities
Gain on reversal of share acquisition rights

2,551
–

–
5,160

Total extraordinary income

5,001

5,160

61,80041,325–85,14556,157–

Non-operating income
Interest income

Total non-operating income

Total non-operating expenses
Ordinary profit

Extraordinary losses
Loss on retirement of non-current assets
Head Office transfer related cost
Expenses related to 50th-anniversary commemorative events
Total extraordinary losses

146,946

97,482

1,362,481

1,153,672

Income taxes - current

375,731315,301

Income taxes - deferred(25,394)(13,228)

350,336

302,072

1,012,144851,600

Profit before income taxes

Total income taxes
Profit5Non-consolidated statements of changes in equity
Fiscal year ended March 31, 2018
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings
Retainedearnings
brought
forwardTotal
retainedearnings

6,068,039

6,781,789

Dividends of surplus(809,750)(809,750)

Profit1,012,144

1,012,144(364,530)(364,530)

Capital stock Legal capital Other capital Total capitalsurplussurplussurplus

Balance at beginning of current period

495,875

400,875

104,329505,204

Legalretainedearnings

Generalreserve

23,750690,000

Changes of items during period

Purchase of treasury shares
Disposal of treasury shares(468,860)(468,860)

Transfer of loss on disposal oftreasury shares

364,530

364,530

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period––(104,329)(104,329)––(162,135)(162,135)

495,875

400,875–

400,875

23,750690,000

5,905,903

6,619,653

ShareacquisitionrightsTotal net
assets5,160

7,279,544

Valuation and translation
adjustments

Shareholders' equity

TreasurysharesBalance at beginning of current period(510,004)

Valuation
Total
Total
difference onvaluation andshareholders' available-fortranslation
equitysale
adjustments
securities
7,272,864

1,520

1,520

Changes of items during period
Dividends of surplus(809,750)(809,750)

Profit1,012,144

1,012,144

Purchase of treasury shares(789,000)(789,000)(789,000)

Disposal of treasury shares

472,416

3,556

3,556––

Transfer of loss on disposal oftreasury shares
Net changes of items other thanshareholders' equity(1,520)(1,520)(1,520)Total changes of items during period(316,584)(583,049)(1,520)(1,520)–(584,569)

Balance at end of current period(826,588)

6,689,814

––

5,160

6,694,974

6

Fiscal year ended March 31, 2019
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Capital stock

Balance at beginning of current period

495,875

Legal capitalsurplus

Total capitalsurplus

Legal retainedearnings

400,875

400,875

23,750Retainedearnings
broughtforwardGeneralreserve
690,000

Total retained
earnings

5,905,903

6,619,653

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

Profit

851,600

851,600

Changes of items during period

Purchase of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current 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 current period(826,588)

Total
shareholders'equity
6,689,814

Changes of items during period
Dividends of surplus(773,515)(773,515)

Profit

851,600

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

Purchase of treasury shares(999,993)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period(5,160)(5,160)(999,993)(921,908)(5,160)(927,068)(1,826,582)

5,767,905–

5,767,905

7

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

Cash flows from operating activitiesProfit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019

1,362,481

1,153,672

250,979(2,604)

302,875
(97)

(242)
4,363

(21)
4,764

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(23,583)(242,810)

155,687(269,703)

Increase (decrease) in notes and accounts payable - trade
Loss (gain) on sales of investment securities

76,582(2,551)(92,691)–

Head Office transfer related cost
Loss on retirement of non-current assets–
61,80056,15741,325Gain on reversal of share acquisition rights
Subsidy income–(200)(5,160)(400)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses

29,70758,390(65,291)(6,262)

Decrease/increase in consumption taxes receivable/payable
Other, net

40,59036,531(53,372)(7,532)

1,649,434

1,213,948

168(4,308)24(4,825)

Income taxes paid
Proceeds from subsidy income(390,390)200(345,806)
17,583

Net cash provided by (used in) operating activities

1,255,103

880,925(615,045)(198,597)

7,937(22,528)–(8,563)

4,795(1,631)(624,840)(208,792)

Proceeds from long-term loans payable
Repayments of long-term loans payable

1,589,000(619,502)

1,000,000(645,668)

Purchase of treasury shares
Cash dividends paid

(789,000)(809,372)(999,993)(773,338)

50,000(6,277)600,000(3,739)Depreciation
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses

SubtotalInterest and dividend income received
Interest expenses paid

Cash flows from investing activitiesPurchase of property, plant and equipment
Proceeds from sales of investment securities
Purchase of intangible assets
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Proceeds from disposal of treasury shares

3,556–(581,596)(822,739)

Net increase (decrease) in cash and cash equivalents

48,666(150,606)

Cash and cash equivalents at beginning of period

2,319,545

2,368,211

Cash and cash equivalents at end of period

2,368,211

2,217,605

Net cash provided by (used in) financing activities

8