Brief Report on the First Quarter Financial Statements for the Period Ending March, 2015
[Japanese Standard] (Consolidated)
August 7, 2014
Listed Shares Exchanges:
Tokyo Stock Exchange 1st section

Name of listed company: DAI-DAN Co., Ltd.
Code No.: 1980
URL: http://www.daidan.co.jp/

Representative of Company: Shohei KITANO, Representative Director, President and Chief Operating Officer (C.O.O.)
Inquiries to be addressed to: Hirokazu KAWAKUBO, Director, Senior Executive Corporate Officer, Head of General Administration Division
Date scheduled to submit Quarterly report:
August 8, 2014
Date scheduled for dividend payment commencement:─Creating supplements to the financial statement:
None
Holding a briefing sessions on the financial statement:
NoneTel.: (06) 6447 - 8003

(Amounts are indicated with figures less than 1 million yen discarded)
1. Consolidated business results for the first quarter of the period ending March 2015 (From April 1, 2014 to June 30, 2014)(1) Consolidated management performance (Cumulative total)(Percentage indications show increase or decrease from the previous period.)

Net sales

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

First quarter of the period ending March 2015

25,269

6.7

255

―

402

―

226

―

First quarter of the period ending March 2014

23,681

-6.3

- 525

―

- 298

―

- 256

―

(Note) Comprehensive income: First quarter of the period ending March 2015 577 million yen (26.5%)
First quarter of the period ending March 2014 456 million yen (– %)Net income per share after
making potential shareadjustments

Net income per share
Yen

Sen

Yen

Sen

First quarter of the period ending March 2015

5.09

―

First quarter of the period ending March 2014

- 5.74―(2) Consolidated financial position
Total assets
First quarter of the period ending March 2015

Net assets

Net assets per share

Million yen%

103,440

46,211

44.5

Period ending March 2014

111,347First quarter of the period ending March 2015 46,026 Million yen,

(Reference) Equity capital:

Equity capital ratio

Million yen

Yen

Sen

1,031.83

46,60941.7
Period ending March 2014 46,420 Million yen

1,040.67

2. Dividend status
Annual Dividends
End of first quarter
Yen
Period ending March 2014―

Period ending March 2015―

End of second quarter
Sen

Yen

Period ending March 2015 (Forecast)End of third quarter

Sen

Yen

Period end

Sen

Yen

Through year
Sen

Yen

Sen

8.00

―

8.00

16.00

8.00

―

8.00

16.00

(Note) Presence or absence of revision from dividend forecast published most recently: None

3. Estimate of consolidated performance for the period ending March 2015 (From April 1, 2014 to March 31, 2015)(Percentage indications show increase or decrease from the previous period for total period and from the same quarter of the previous year for the 2nd quarter consolidated cumulative period.)

Net sales

Operating income

Ordinary income

Net income

Net income per share

Million yen%

Million yen%

Million yen%

Million yen%

2nd quarter consolidated
cumulative period

55,500

-0.4

1,200

19.0

1,200

-0.4

660

112.6

14.80

Total period

123,000

-1.2

4,000

-4.1

4,000

-10.5

2,200

31.7

49.32

(Note) Presence or absence of revision from dividend forecast published most recently: None
(Reference) (1) Estimated net sales of construction contract orders (the 2nd quarter consolidated cumulative period) 67,200 Million yen(2) Estimated net sales of construction contract orders (Total period) 123,000 Million yen

Yen

Sen

* Annotations(1) Changes in key subsidiaries in the current quarter consolidated cumulative period （changes in specific subsidiaries requiring changes of
consolidation scope）: None
(2) Application of particular accounting to the preparation of quarter consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, revision redisplay
 Changes in accounting policies due to revision of accounting standards etc.: Yes
 Changes in accounting policies other than : None
Changes in accounting estimates: None
Revision redisplay: None
(Note) Refer to (3) Changes in Accounting Policies, Changes in Accounting Estimates, and Revision Redisplay in 2. Items Concerning Summary
Information (Annotation) in attached document on page 3 for detail.
(4) Number of issued shares (common stock) Number of issued shares at the end of period (including treasury stock) Number of treasury stock at the end of period
 Average numbers of shares in the period (Quarter total)First quarter of period ending
March 2015
First quarter of period ending
March 2015
First quarter of period ending
March 2015

Period ending March 2014

45,963,803 shares

1,356,898 shares

Period ending March 2014

1,357,727 shares

44,606,534 sharesFirst quarter of period ending
March 2014

44,613,666 shares

45,963,803 shares* Display Concerning State of Quarter Review Procedure Implementation
Quarter report review under the Financial Instruments and Exchange Act is implemented at the time of disclosure of this quarter settlement brief statement.
* Explanation about adequate use of achievement forecasts and other noteworthy matters
The above forecasts are based on the information available at the time of preparation of this document and the assumption considered as reasonable
Consequently, actual results differ materially from forecasts above due to changes in business results. For precautions for use of the assumptions for theabove forecasts and forecasts of business results, please refer to information in the section “1. Qualitative Information on Current Quarter BusinessSettlement, (3) Explanation about Future Estimate Information such as Consolidated Earnings Forecasts” on page 2.

(Reference) Estimate of individual performance
Estimate of individual performance for the period ending March 2015 (From April 1, 2014 to March 31, 2015)(Percentage indications show increase or decrease from the previous period for total period and from the same quarter of the previous year for the 2nd quarter consolidated cumulative period.)

Net sales

Operating income

Ordinary income

Net income

Net income per share

Million yen%

Million yen%

Million yen%

Million yen%

2nd quarter consolidated
cumulative period

55,000

-0.2

1,200

26.6

1,200

5.2

660

128.1

14 .80Total period

122,000

-0.8

4,000

-1.5

4,000

-8.2

2,200

37.5

49 .32(Note) Presence or absence of revision from dividend forecast published most recently: None
(Reference)(1) Estimated net sales of construction contract orders (the 2nd quarter consolidated cumulative period) 66,700 Million yen(2) Estimated net sales of construction contract orders (Total period) 122,000 Million yen

Yen

Sen

DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2015

○ Contents of Information
1. Qualitative Information on Current Quarter Business Settlement ................................................... 2(1) Explanation about Operating Results ............................................................................................................... 2(2) Explanation about Financial Positions ............................................................................................................. 2(3) Explanation about Future Estimate Information such as Consolidated Earnings Forecasts ............................ 3

2. Items Concerning Summary Information (Annotation) ................................................................... 3(1) Changes in Major Subsidiaries in the Current Quarter Consolidated Cumulative Period ............................... 3(2) Application of Particular Accounting to the Preparation of Quarter Consolidated Financial Statements ....... 3(3) Changes in Accounting Policies, Changes in Accounting Estimates, Revision Redisplay .............................. 3

3. Consolidated Financial Statements .................................................................................................. 4(1) Consolidated Balance Sheets ........................................................................................................................... 4(2) Consolidated Income Statements and Consolidated Statements of Comprehensive Income ........................... 6
Consolidated Income Statements
First Quarter Consolidated Cumulative Period ............................................................................................ 6
Consolidated Statements of Comprehensive Income
First Quarter Consolidated Cumulative Period.............................................................................................. 7(3) Annotation Items Concerning Quarterly Consolidated Financial Statements .................................................. 8(Notes to Going Concern Assumption) ............................................................................................................ 8(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ............................................ 8

4. Supplementary Information ............................................................................................................. 8
Divisional net sales of construction contract orders received, completed construction contracts, and uncompleted
construction contracts (consolidated)....................................................................................................................................... 8-1-

DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2015

1. Qualitative Information on Current Quarter Business Settlement(1) Explanation about Operating Results
The Japanese economy in the current first quarter consolidated accounting period showed a sustained moderate
recovery thanks to an increase in corporate earnings and improvement in employment, but it also showed aunstable situation such as a partial decline in personal consumption in reaction to last-minute purchases of
products by consumers in the previous fiscal year ahead of the consumption tax hike.
In the construction industry, private capital investment showed an increase mainly in the manufacturing sector,
but the state of excess capacity was continuing. As a result, the environment for orders continued to be difficult
Under these circumstances, we have been working to secure orders and profits in accordance with the mid-term
management plan “Dai-Dan to Challenge a New Era,” and achieved the following operating results in the current
first quarter consolidated accounting period.
Net sales of construction contract orders received, despite the difficult environment for orders, increased by 146
million yen over the previous first quarter consolidated accounting period to 29,892 million yen.
Net sales of completed construction contracts increased by 1,588 million yen over the previous first quarter
consolidated accounting period to 25,269 million yen.
Gross profit of completed construction contracts increased by 813 million yen over the previous first quarter
consolidated accounting period to 2,848 million yen because of improvement in gross profit margin of completed
construction contracts in addition to the increase in net sales of completed construction contracts.
Operating income amounted to 255 million yen due to the increase in the gross profit of completed construction
contracts. (The 525 million yen operating loss was posted for the previous first quarter consolidated accounting
period.)Ordinary income amounted to 402 million yen because, despite of some loss factors like that the 80 million yen
gain on foreign exchange in the previous first quarter consolidated accounting period turned into an 8 million yen
loss on foreign exchange in the current first quarter consolidated accounting period, the operating income, etc.
surpassed these loss factors. (The 298 million yen ordinary loss was posted for the previous first quarter
consolidated accounting period.)
Net income amounted to 226 million yen after deduction of income taxes-deferred because, despite of the 20
million yen loss on revaluation of investments in securities, the operating income surpassed such loss. (The 256
million yen net loss was posted for the previous first quarter consolidated accounting period.)(2) Explanation about Financial Positions(Assets)
Current assets at the end of the current first quarter consolidated accounting period increased by 7,582 million
yen from the end of the previous consolidated accounting year to 78,141 million yen, primarily because decreases
in note receivables and accounts receivable from completed construction contracts (15,585 million yen) surpassed
an increase in cash and deposits (7,569 million yen). Noncurrent assets decreased by 324 million yen from the endof the previous consolidated accounting year to 25,298 million yen, primarily because a decrease in net defined
benefit asset (743 million yen) surpassed an increase in investment securities (507 million yen).
As a result, total assets decreased by 7,907 million yen from the end of the previous consolidated accounting
year to 103,440 million yen.
(Liabilities)
Current liabilities at the end of the current first quarter consolidated accounting period decreased by 7,325
million yen from the end of the previous consolidated accounting year to 51,213 million yen, primarily because of
decreases in notes payable and accounts payable on completed works (4,868 million yen) and in income taxes
payable (1,373 million yen). Noncurrent liabilities decreased by 183 million yen from the end of the previous
consolidated accounting year to 6,014 million yen, primarily because of decreases in long-term loans payable (123
million yen) and deferred tax liabilities (118 million yen).
As a result, total liabilities decreased by 7,509 million yen from the end of the previous consolidated accounting
year to 57,228 million yen.
(Net Assets)
Net assets at the end of the current first quarter consolidated accounting period decreased by 397 million yen
from the end of the previous consolidated accounting year to 46,211 million yen, primarily because an decrease inretained earnings (618 million yen) resulting from adjustment at the beginning of the period due to the adoption of
accounting standard for retirement benefits and dividends of surplus (356 million yen) surpassed the posted net
income (226 million yen) and an increase in valuation difference on available-for-sale securities (337 million
yen).
As a result, equity ratio came to 44.5% (41.7% at the end of the previous consolidated accounting year).

-2-

DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2015(3) Explanation about Future Estimated Information such as Consolidated Earnings Forecasts
Business result forecast for the second quarter consolidated accounting period and full period published on May
8, 2014 remains unchanged.

2. Items Concerning Summary Information (Annotations)(1) Changes in Major Subsidiaries in the Current Quarter Consolidated Cumulative Period
None applicable(2) Application of Particular Accounting to the Preparation of Quarter Consolidated Financial Statements
None applicable(3) Changes in Accounting Policies, Changes in Accounting Estimates, Revision Redisplay
Changes in Accounting Policies(Adoption of accounting standard for retirement benefits)
Concomitant with the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26 May 17, 2012,
hereinafter referred to as the “Accounting Standard for Retirement Benefits”) and Guidance on AccountingStandard for Retirement Benefits (ASBJ Guidance No. 25 May 17, 2012, hereinafter referred to as the “Guidanceon Retirement Benefits”), the Company Group has applied the regulations stipulated under Article No. 35 of the
Accounting Standard for Retirement Benefits and Article No. 67 of the Guidance on Retirement Benefits from thecurrent first quarter consolidated accounting period. Under the new standards, the method of calculating
retirement benefit obligations and service cost is revised, with the method of determining the discount rate revised
from the average number of remaining service years of employees to a single weighted average discount rate
reflecting the estimated timing and amount of benefit payment.
In regard to the adoption of the Accounting Standard for Retirement Benefits, the Company Group follows thetransitional measure stipulated under Article No. 37 of the Accounting Standard for Retirement Benefits, and theamount of financial impact arising from the changes in method of calculating retirement benefit obligations andservice cost is recognized as an adjustment to retained earnings at the beginning of the first quarter consolidated
accounting period.
As a result, net defined benefit liability has increased by 88 million yen from the beginning of the current firstquarter consolidated accounting period, and net defined benefit asset, deferred tax liabilities, and retained earnings
have decreased by 878 million yen, 347 million yen, and 618 million yen, respectively.
The effect on the operating income, ordinary income, and net income before taxes for the current first quarter
consolidated accounting period is minimal.

-3-

DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2015

3. Consolidated Financial Statements(1) Consolidated Balance Sheets
Previous Consolidated
Accounting Year
(March 31, 2014)
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-4-(in million yen)
Current First Quarter
Consolidated Accounting Period(June 30, 2014)

24,62657,18932,196
41,603

152
0
1,273
2,488
-6
85,724

666
0
1,143
2,536
-4
78,141

3,788
260

3,773
214

13,229
1
6,921
2,086
-665

13,737
1
6,177
1,588
-195

21,57425,623

21,31025,298111,347

103,440

DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2015

(in million yen)
Current First Quarter Consolidated
Accounting Period(June 30, 2014)

Previous Consolidated
Accounting Year
(March 31, 2014)
Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Short-term loans payable
Income taxes payable
Advances received on uncompleted
construction contracts
Provision for bonuses
Provision for directors' bonuses
Provision for warranties for completed
construction
Provision for loss on construction contracts
Loss reserve related to antimonopoly law
OtherTotal current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Provision for environment measures
Provision for overseas investment loss
Long-term accounts payable
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-5-40,00735,138

5,686
1,381
3,124

5,694
8
2,780

－
－
92

709
21
95

130
771
7,346

82
771
5,910

58,53951,213

1,903
2,304
1,398
220
18
352
0

1,780
2,186
1,461
220
13
352
0

6,197

6,014

64,73757,2284,479
4,809
34,597
-666

4,479
4,809
33,849-665

43,22142,473

3,690

4,028

68
-559

58
-533

3,199

3,553

189

185

46,609111,347

46,211
103,440

DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2015

(2) Consolidated Income Statements and Consolidated Statements of Comprehensive Income(Consolidated Income Statements)(First Quarter Consolidated Cumulative Period)

Net sales of completed construction contracts
Cost of sales of completed construction contracts
Gross profit on completed construction contracts
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividends income
Insurance fee
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Guarantee commission
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of noncurrent assets

Previous First Quarter
Consolidated Cumulative Period(From April 1, 2013 toJune 30, 2013)
23,681
21,646
2,034
2,560
-525

(in million yen)
Current First Quarter
Consolidated Cumulative Period(From April 1, 2014 toJune 30, 2014)
25,26922,420
2,848
2,592
255

2
97
82
80
12
276

1
105
86
－
8
202

36
4
－
7
49
-298

37
0
8
7
55
402

－

1

－

1

－
0
0
－

5
10
20
0

1

38

Income (Loss) before income taxes and minority
interests

-300

366

Income taxes-current
Income taxes-deferred
Total income taxes

24
-73
-49

-5
146
141

Income (loss) before minority interests

-251

224

5

-2

-256

226

Total extraordinary income
Extraordinary loss
Impairment loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of golf club membership
Total extraordinary loss

Minority interests in income (loss)
Net income (loss)-6-

DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2015

(Consolidated Statements of Comprehensive Income)(First Quarter Consolidated Cumulative Period)

Income (loss) before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
before tax

Previous First Quarter
Consolidated Cumulative Period(From April 1, 2013 toJune 30, 2013)-251

Total other comprehensive income
Comprehensive income(Particulars)
Comprehensive income attributable to ownersof parent
Comprehensive income attributable to minority
interests-7-(in million yen)
Current First Quarter
Consolidated Cumulative Period(From April 1, 2014 toJune 30, 2014)
224

672

337

34
－

-11
26

707
456

352
577

433

581

22

-3

DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2015

(3) Annotation Items Concerning Quarterly Consolidated Financial Statements(Notes to Going Concern Assumption)
None(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity)
None

4. Supplementary Information

Divisional net sales of construction contract orders received, completed construction contracts, and uncompleted
construction contracts (consolidated)(in million yen)Previous First Quarter
Consolidated Cumulative
PeriodCurrent First Quarter
Consolidated Cumulative
PeriodPrevious Consolidated
Accounting Year

(From April 1, 2013
to June 30, 2013)(From April 1, 2014
to June 30, 2014)(From April 1, 2013 toMarch 31, 2014)

Net sales of construction contract
orders received

AmountElectrical equipment

Net sales of completed
construction contracts

AmountComponent
ratio %

AmountComponent
ratio %

5,044

17.0

6,769

22.7

28,80822.6

19,19764.5

16,77356.1

75,27759.1

Plumbing

5,505

18.5

6,350

21.2

23,307

18.3

Total

29,746100.0

29,892100.0

127,394

100.0(Renovations)18,501

62.2

15,06550.4

71,595

56.2(Overseas operations)

2,640

8.9

1,447

4.8

10,385

8.2

5,535

23.4

4,225

16.7

26,52821.3

Air-conditioning

12,954

54.7

15,742

62.3

71,134

57.2

Plumbing

5,191

21.9

5,301

21.0

26,783

21.5

Total

23,681100.0

25,269100.0

124,445

100.0(Renovations)

11,022

46.6

11,87847.0

65,293

52.5(Overseas operations)

670

2.8

1,453

5.8

6,237

5.0

10,59812.4

15,91418.2

13,37016.2

Air-conditioning

54,02062.9

52,951

60.6

51,921

62.7

Plumbing

21,21424.7

18,47321.2

17,425

21.1

Total

85,833100.0

87,339100.0

82,716100.0(Renovations)

27,841

32.4

29,851

34.2

26,664

32.2(Overseas operations)

5,674

6.6

7,846

9.0

7,852

9.5

installations
Air-conditioning
installations

Electrical equipment
installations

Electrical equipment
Net sales of uncompleted
construction contracts

Component
ratio %

installations-8-