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, 2018
(Based on Japanese GAAP)May 15, 2018
Company name:

DAIKEN MEDICAL CO., LTD.

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

URL

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

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

June 22, 2018
June 22, 2018

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

June 5, 2018
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, 2018 (from April 1, 2017 to March 31, 2018)(1) Non-consolidated operating resultsPercentages indicate year-on-year changes
Net salesYear ended March 31, 2018Year ended March 31, 2017

Millions of yen
8,585
8,399

Operating profit
%
2.2
1.7

Millions of yen
1,505
1,711

Diluted earnings pershare
Yen
Yen
33.79
33.76
41.55
41.50

Earnings per share
Year ended March 31, 2018Year ended March 31, 2017

Ordinary profit% Millions of yen(12.0)
1,504
0.9
1,714

Profit% Millions of yen(12.3)
1,012
0.6
1,246%(18.8)
8.0

Ordinary profit/total Operating profit/netassets
sales%%%
14.5
13.6
17.5
18.116.2
20.4

Profit/equity(2) Non-consolidated financial position
Total assets
As of March 31, 2018
As of March 31, 2017

Net assets

Equity ratio

Millions of yen
11,137
11,007

Millions of yen
6,694
7,279

Cash flows fromoperating activities
Millions of yen
1,255
1,350

Cash flows frominvesting activities
Millions of yen
(624)
(603)

Net assets per share%
60.1
66.1

Yen
222.80242.55(3) Non-consolidated cash flows

Year ended March 31, 2018Year ended March 31, 2017

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(581)
2,368(729)2,319

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

Year ended March 31, 2017
Year ended March 31, 2018Year ending March 31, 2019
(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%%

––

7.00
9.00

–
–

18.00
16.00

25.00
25.00

749
750

60.2
74.0

10.9
10.7

–

11.00

–14.00

25.00

167.6

3. Forecast of non-consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Percentages indicate year-on-year changes
Net sales
Millions of yen
Six months ending
September 30, 2018
Full year

Operating profit% Millions of yen

Ordinary profit% Millions of yen

Profit% Millions of yen

Earnings per share
%Yen

4,400

3.9

750(10.0)750(10.0)

520

1.6

17.32

9,000

4.8

1,600

6.3

1,600

6.4

1,110

9.7

36.97

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:

No
No

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, 2018

31,840,000 shares As of March 31, 2017

31,840,000 shares

Number of treasury shares at the end of the period
As of March 31, 2018

1,813,257 shares As of March 31, 2017

1,849,257 shares

29,951,697 shares Year ended March 31, 2017

29,990,743 shares

Average number of shares during the period
Year ended March 31, 20182

Non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of March 31, 2017

As of March 31, 2018

AssetsCurrent assets
Cash and deposits
Notes receivable - trade2,319,545
1,319,400

2,368,211
1,235,843

Accounts receivable - tradeFinished goods

1,406,596
674,924

1,513,983
742,539

Work in process
Raw materials

46,185266,240

77,225
410,395

Prepaid expenses
Deferred tax assets

43,241135,01121,934
164,855

Other
Allowance for doubtful accounts

79,034(91)

27,632(184)

6,290,088

6,562,436

Buildings, net
Structures, net

718,411–2,236,975
2,828

Machinery and equipment, net
Vehicles, net

88,773–

97,415424

Tools, furniture and fixtures, net
Land114,885
1,703,670

258,167
1,703,670

Leased assets, net
Construction in progress

13,9191,866,226

14,22780,376

Total property, plant and equipment

4,505,887

4,394,085

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

Intangible assets
Software46,75740,858

Software in progress
Telephone subscription right

9,945
5,103

–
5,103

Total intangible assets

61,80545,961

Investments and other assets
Investment securities

7,576

–

1110

247

–

Investments in capital
Claims provable in bankruptcy, claims provable inrehabilitation and other
Long-term prepaid expenses

3,533

2,049

Deferred tax assets
Guarantee deposits

30,037
96,673

26,257
95,952

Membership
Life insurance funds

21,5008,797

17,5008,797

Long-term accounts receivable - other
Allowance for doubtful accounts

13,150(31,748)

13,150(29,050)

Total investments and other assets
Total non-current assets
Total assets

3

149,778

134,667

4,717,472

4,574,714

11,007,560

11,137,150

(Thousands of yen)
As of March 31, 2017

As of March 31, 2018

Liabilities
Current liabilities
Notes payable - trade449,170

558,375

Accounts payable - trade
Short-term loans payable

403,747
450,000

371,126
500,000

Current portion of long-term loans payable
Accounts payable - other439,952
717,839547,752
302,349

Lease obligations
Accrued expenses

6,801
394,251

3,586
452,643

Income taxes payable
Accrued consumption taxes

201,971
26,025

181,886
66,615

Deposits received
Notes payable - facilities

24,67725,41523,14933,753

Other

62,636

10,2063,202,489

3,051,444

Long-term loans payable
Lease obligations

500,140
8,410

1,361,838
11,897Long-term guarantee depositedOther

14,006
2,969

14,026
2,969

Total current liabilities
Non-current liabilities

Total non-current liabilities

525,526

1,390,731

3,728,016

4,442,175

495,875

495,875

Capital surplus
Legal capital surplus

400,875

400,875

Other capital surplus

104,329–

Total capital surpluses

505,204

400,875

23,75023,750690,000
6,068,039

690,000
5,905,903

Total liabilities
Net assets
Shareholders' equity
Capital stock

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

6,781,789

6,619,653

Treasury shares

Total retained earnings(510,004)(826,588)

Total shareholders' equity

7,272,864

6,689,814Valuation difference on available-for-sale securities

1,520

–

Total valuation and translation adjustments

1,520

–

Valuation and translation adjustments

Share acquisition rights
Total net assets
Total liabilities and net assets

4

5,160

5,160

7,279,544

6,694,974

11,007,560

11,137,150

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, 2017

March 31, 2018

8,399,605

8,585,276

553,000
4,168,152

674,924
4,482,813

39,135
9,614

41,167
5,847

4,769,902

5,204,752

103,601
674,924

103,017742,539

3,991,377

4,359,195

Gross profit

4,408,227

4,226,081

Selling, general and administrative expenses

2,696,974

2,720,318

Operating profit

1,711,253

1,505,763

130

129

217
1,112

112
827

531
997

1,111
619

Subsidy income
Insurance premiums refunded cancellation

1,938
780

200–

Other

1,898

850

Total non-operating income7,605

3,850Interest expenses
Other

3,942–

4,363
823

Total non-operating expenses

3,942

5,187

1,714,916

1,504,426–

2,450–
1,650

2,551–

840

–

2,490

5,001

15,5944,201

61,800––85,145Non-operating income
Interest income
Dividend income
Gain on forfeiture of unclaimed dividends
Foreign exchange gains
Compensation income

Non-operating expenses

Ordinary profit
Extraordinary income
Reversal of allowance for doubtful accounts
Gain on sales of investment securities
Gain on sales of golf memberships
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on cancellation of leases
Expenses related to 50th-anniversary commemorative events

19,795

146,946

Profit before income taxes

Total extraordinary losses

1,697,610

1,362,481

Income taxes - current
Income taxes - deferred

431,072
20,536

375,731(25,394)

Total income taxes

451,609350,336

1,246,001

1,012,144

Profit5

Non-consolidated statements of changes in equity
Fiscal year ended March 31, 2017
(Thousands of yen)
Shareholders' equityCapital surplus

Retained earnings
Other retained earnings
Retainedearnings
broughtforward

Total
retainedearnings

5,301,889

6,015,639

Dividends of surplus(479,851)(479,851)

Profit1,246,001

1,246,001

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
Transfer of loss on disposal oftreasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

––––

–

–

766,149

766,149

495,875

400,875

104,329505,204

23,750690,000

6,068,039

6,781,789

ShareacquisitionrightsTotal net
assets

6,000

6,512,633

Shareholders' equity

Valuation
Total
Total
difference onvaluation andshareholders' available-fortranslation
equitysale
adjustments
securities

TreasurysharesBalance at beginning of current period

Valuation and translation
adjustments(510,004)

6,506,714

(80)

(80)

Changes of items during period
Dividends of surplus(479,851)(479,851)

Profit1,246,001

1,246,001

Purchase of treasury shares
Disposal of treasury shares
Transfer of loss on disposal oftreasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

1,601

1,601(840)761–

766,149

1,601

1,601(840)

766,910(510,004)

7,272,864

1,520

1,520

5,160

7,279,544

6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
securities7,272,864

1,520

1,520

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

1,012,144

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

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, 2017

March 31, 2018

1,697,610

1,362,481

175,912(748)

250,979(2,604)

(347)
3,942

(242)
4,363

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories

59,428(103,905)(23,583)(242,810)

Increase (decrease) in notes and accounts payable - trade
Loss (gain) on sales of investment securities(10,259)–

76,582(2,551)

Loss on retirement of non-current assets
Loss (gain) on sales of golf club memberships

15,594(1,650)61,800–Surrender value of insurance
Subsidy income(780)(1,938)–(200)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses(11,709)
9,679

29,70758,390Decrease/increase in consumption taxes receivable/payable
Other, net

26,86247,891

40,59036,531

1,905,582

1,649,434

276(3,824)168(4,308)

Income taxes paid
Proceeds from subsidy income(553,619)
1,938(390,390)200

Net cash provided by (used in) operating activities

1,350,353

1,255,103

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 activities
Purchase of property, plant and equipment(595,448)(615,045)

Proceeds from sales of investment securities
Purchase of intangible assets–(16,663)

7,937(22,528)

Proceeds from sales of golf club memberships
Proceeds from cancellation of insurance funds

5,650
1,377––

Other, net

1,103

4,795

(603,982)(624,840)

Proceeds from long-term loans payable
Repayments of long-term loans payable–(289,952)

1,589,000(619,502)

Purchase of treasury shares
Cash dividends paid–
(480,359)(789,000)(809,372)

50,000(8,950)50,000(6,277)

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
Net cash provided by (used in) financing activities–3,556(729,261)(581,596)

Net increase (decrease) in cash and cash equivalents

17,10948,666

Cash and cash equivalents at beginning of period

2,302,435

2,319,545

Cash and cash equivalents at end of period

2,319,545

2,368,211

8