Brief Report on the Third Quarter Financial Statements for the Period Ending March 2016
[Japanese Standard] (Consolidated)
February 9, 2016

Name of listed company: DAI-DAN Co., Ltd.

Listed Shares Exchanges:
Tokyo Stock Exchange 1st section
Tel. (06) 6447 - 8003
Representative of Company: Shohei KITANO, Representative Director, President and Chief Operating Officer (C.O.O.)
Inquiries to be addressed to: Takayuki IKEDA, Director, Corporate Officer, Head of General Administration Division
Date scheduled to submit Quarterly report:
February 10, 2016
Date scheduled for dividend payment commencement:―
Creating supplements to the financial statement:
None
Holding a briefing sessions on the financial statement:
None
Code No.:1980

URL: http://www.daidan.co.jp/(Amounts are indicated with figures less than 1 million yen discarded)

1. Consolidated business results for the third quarter of the period ending March 2016 (From April 1, 2015 to December 31, 2015)(Percentage indications show increase or decrease from the previous period.)(1) Consolidated management performance (Cumulative total)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Million yen%
Million yen%
Million yen
Third quarter of the period
96,561
13.3
4,404
47.7
4,631
ending March 2016
Third quarter of the period
85,223
0.3
2,980
36.0
3,249
ending March 2015
(Note) Comprehensive income Third quarter of the period ending March 2016 3,195 Million yen (2.2 %)March 2015 3,126 Million yen (-2.3 %)Net income per share

Net income per shareafter making potential
share adjustments

Yen

Yen

Third quarter of the period
ending March 2016
Third quarter of the period
ending March 2015

Sen

―

41.10

―

Million yen

Million yen

%

2,925

59.6

27.2

1,833

62.5

Third quarter of the period ending

Sen

65.60

(2) Consolidated financial position
Total assets%
42.5

Net assets

Equity capital ratio%

Net assets per share
Yen Sen47.9

1,246.71

Million yen

Third quarter of the period
116,106
55,806
ending March 2016
Period ending March 2015
113,440
53,462(Reference) Equity capital Third quarter of the period ending March 2016 55,598 Million yen

46.9
Period ending March 2015

1,193.61
53,236 Million yen

Period end

Through year

2. Dividends
End of first quarter
Period ending March 2015
Period ending March 2016

Yen Sen――Annual dividends
End of second quarter End of third quarter
Yen Sen
8.00
9.00

Yen Sen―Yen Sen
10.00

Yen Sen
18.00

―

9.00

18.00

Period ending March 2016
(Forecast)(Note) Presence or absence of revision from dividend forecast published most recently: None

3. Estimate of consolidated performance for the period ending March 2016 (From April 1, 2015 to March 31, 2016)(Percentage figures represent increase or decrease from the previous accounting year.)Net sales

Operating income

Ordinary income

Mil. yenMil. yen%Mil. yen%%
136,000
11.7
5,500
21.0
5,500
12.8
(Note) Presence or absence of revision from dividend forecast published most recently: Yes(Reference) Estimated net sales of construction contract orders (Total period) 141,000 Million yen

Total period

Profit attributableto owners of parent Net income per share
Mil. yen
3,300

%
13.0

Yen

Sen
73.99

* Annotations(1) Changes in significant 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) For details, please refer to Attached Data p.4 “2. Items Concerning Summary Information (Annotations), (3) Changes in
Accounting Policies, Changes in Accounting Estimates, Revision Redisplay”(4) Number of issued shares (common stock) Number of issued shares at the end of period (including treasury stock)
Third quarter of period ending March 2016
45,963,803 shares Number of treasury stock at the end of period
Third quarter of period ending March 2016
1,367,578 shares Average numbers of shares in the period (Quarter total)
Third quarter of period ending March 2016
44,598,938 shares

Period ending March 2015

45,963,803 shares

Period ending March 2015

1,362,322 shares

Third quarter of period ending March 2015
44,605,995 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 on 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 the above forecasts and forecasts of business results, please refer to information in the section “1.
Qualitative Information on Current Quarter Business Settlement, (3) Explanation on Future Estimate Information such as
Consolidated Earnings Forecasts” on page 3.

(Reference) Estimate of individual performance
Estimate of individual performance for the period ending March 2016 (From April 1, 2015 to March 31, 2016)
Net sales(Percentage figures represent increase or decrease from the previous accounting year.)
Net income per
Operating income Ordinary income
Net income
shareMil. yenMil. yen%%Mil. yen%Mil. yen
135,000
12.0
5,500
21.8
5,500
15.5
3,300
(Note) Presence or absence of revision from dividend forecast published most recently: Yes(Reference) Estimated net sales of construction contract orders (Total period) 140,000 Million yen

Total period

%
15.8

Yen

Sen
73.99

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2016

 Contents of Information
1. Qualitative Information on Current Quarter Business Settlement ...........................................................................2(1) Explanation on Operating Results......................................................................................................................2(2) Explanation on Financial Conditions .................................................................................................................2(3) Explanation on Future Estimate Information such as Consolidated Earnings Forecasts ...................................3
2. Items Concerning Summary Information (Annotations) .........................................................................................4(1) Changes in Significant Subsidiaries in the Current Quarter Consolidated Cumulative Period..........................4(2) Application of Particular Accounting to the Preparation of Quarter Consolidated Financial Statements .........4(3) Changes in Accounting Policies, Changes in Accounting Estimates, Revision Redisplay ................................4
3. Consolidated Financial Statements ..........................................................................................................................5(1) Consolidated Balance Sheets .............................................................................................................................5(2) Consolidated Income Statements and Consolidated Statements of Comprehensive Income .............................7(Consolidated Income Statements) ......................................................................................................................7(Third Quarter Consolidated Cumulative Period)............................................................................................7(Consolidated Statements of Comprehensive Income) ........................................................................................8(Third Quarter Consolidated Cumulative Period)............................................................................................8(3) Annotation Items Concerning Quarterly Consolidated Financial Statements ....................................................9(Notes to Going Concern Assumption) ............................................................................................................9(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ............................................9
4. Supplementary Information .....................................................................................................................................9
Divisional net sales of construction contract orders received, completed construction contracts, anduncompleted construction contracts (consolidated) .................................................................................................9−1−

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2016

1. Qualitative Information on Current Quarter Business Settlement(1) Explanation on Operating Results
During the current third quarter consolidated cumulative accounting period, Japan’s economy was unstable
due to Chinese economic trend and emerging countries’ economic slowdown, though domestic corporate
business environment continued to be good.
In the construction industry, private-sector’s capital investments were expected to increase as a result ofrobust corporate performance, yet full-scale recovery was not seen despite the steady situation, because of astrong cautious attitude and a concern about overseas economy.
Under the circumstances, as a result of that we tackled the securing of orders received and profit based on
our mid-term management plan called “Dai-Dan to Challenge a New Era,” the operating results in thecurrent third quarter consolidated cumulative accounting period resulted as follows.
Net sales of construction contract orders received resulted in 107,447 million yen decreasing from theprevious third quarter consolidated cumulative accounting period by 10,192 million yen.
Net sales of completed construction contracts resulted in 96,561 million yen increasing from the previous
third quarter consolidated cumulative accounting period by 11,337 million yen.
Gross profit on completed construction contracts resulted in 11,653 million yen increasing from theprevious third quarter consolidated cumulative accounting period by 1,236 million yen.
In response to the increase of the gross profit on completed construction contracts, operating income
resulted in 4,404 million yen increasing from the previous third quarter consolidated cumulative accounting
period by 1,423 million yen.
Although the foreign exchange gains of 78 million yen which arose in the previous third quarter
consolidated cumulative accounting period turned to foreign exchange losses of 8 million yen in the current
third quarter consolidated cumulative accounting period, as the operating income increased and dividends
income of 215 million yen etc. arose, ordinary income resulted in 4,631 million yen increasing from theprevious third quarter consolidated cumulative accounting period by 1,382 million yen.
As to the profit attributable to owners of parent, as a result of that, in addition to the increase of the ordinary
income, the profit reversed from the allowance for the loss relating to the antimonopoly law of 47 million
yen was accounted for as an extraordinary income, and that income taxes-current, income taxes-deferred,and profit attributable to non-controlling interests were deducted, it resulted in 2,925 million yen increasingfrom the previous third quarter consolidated cumulative accounting period by 1,092 million yen.
(2) Explanation on Financial Conditions(Assets)
Current assets as of the end of the current third quarter consolidated accounting period resulted in 82,316
million yen increasing from the end of the previous consolidated accounting year by 1,484 million yen.
This is mainly because the increased notes receivable, accounts receivable from completed construction
contracts (6,214 million yen) and the increased costs on uncompleted construction contracts (897 million yen)exceeded the decreased cash and deposits (5,270 million yen). Noncurrent assets resulted in 33,790 million
yen, increasing by 1,181 million yen from the end of the previous consolidated accounting year. This ismainly because of the increased investment securities (574 million yen) and the increased net ddefined
benefit assets (414 million yen).
As a result, total assets counted 116,106 million yen increasing from the end of the previous accounting year
by 2,665 million yen.

−2−

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2016

(Liabilities)
Current liabilities as of the end of the current third quarter consolidated accounting period resulted in
52,767 million yen increasing from the end of the previous consolidated accounting year by 454 million yen.
This is mainly because the increased advances received on uncompleted construction contracts (1,247
million yen) and the increased provision for bonuses (1,384 million yen) exceeded the decreased notes
payable, accounts payable for construction contracts (1,089 million yen), the decreased income taxes
payable (786 million yen), and the decreased loss reserve related to antimonopoly law (390 million yen).
Noncurrent liabilities resulted in 7,532 million yen, decreasing by 132 million yen from the end of theprevious consolidated accounting year. This is mainly because the decreased long-term loans payable (295
million yen) and the decreased provision for environmental measures (107 million yen) exceeded theincreased deferred tax liabilities (381 million yen).
As a result, total liabilities counted 60,300 million yen increasing from the end of the previous consolidated
accounting year by 322 million yen.
(Net Assets)
Total net assets as of the end of the current third quarter consolidated accounting period counted 55,806
million yen increasing from the end of the previous consolidated accounting year by 2,343 million yen.
This is mainly because the profit attributable to owners of parent (2,925 million yen) exceeded the dividendof surplus (847 million yen).
As a result, equity capital ratio resulted in 47.9% (it was 46.9% in the end of the previous consolidated
accounting year).
(3) Explanation on Future Estimate Information such as Consolidated Earnings Forecasts
As to the consolidated earnings forecasts for the total period of this accounting year, taking into account thebusiness results and order acceptance situation etc. of the third quarter consolidated cumulative accounting
period, net sales of construction contract orders received was revised from 136,000 million yen as
publicized at the previous time on November 6, 2015 to 141,000 million yen increasing by 5,000 million
yen and net sales of completed construction contracts was revised from 134,000 million yen as publicized at
the previous time to 136,000 million yen increasing by 2,000 million yen. As to the income, accompanying
the increase of net sales of completed construction contracts, operating income was revised to 5,500 million
yen increasing from 5,300 million yen as publicized at previous time by 200 million yen, ordinary income
was revised to 5,500 million yen increasing from 5,300 million yen as publicized at previous time by 200
million yen, and the profit attributable to owners of parent was revised to 3,300 million yen increasing from3,200 million yen as publicized at previous time by 100 million yen.

−3−

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2016

2. Items Concerning Summary Information (Annotations)(1) Changes in Significant Subsidiaries in the Current Quarter Consolidated Cumulative Period
Not applicable(2) Application of Particular Accounting to the Preparation of Quarter Consolidated Financial Statements
Not applicable(3) Changes in Accounting Policies, Changes in Accounting Estimates, Revision Redisplay(Application of Accounting Standard Relating to Corporate Consolidation Etc.)
We have been applying “Accounting Standard Relating to Corporate Consolidation” (Corporate
Accounting Standard No.21 dated September 13, 2013, hereinafter called “Corporate Consolidation
Accounting Standard”), “Accounting Standard Relating to Consolidated Financial
Statements”(Corporate Accounting Standard No.22 dated September 13, 2013, hereinafter called“Consolidated Accounting Standard”) and “Accounting Standard Relating to Business Separation”(Corporate Accounting Standard No.7 dated September 13, 2013, hereinafter called “AccountingStandard for Business Separation Etc.”) etc. from the current first quarter consolidated accounting period,and changed the method to account for the difference amount caused by the fluctuation of the equity of
the Company in the subsidiaries which we are continuing to dominate as capital surplus, and to accountfor the acquisition-related costs as the costs in the consolidated accounting year in which they occurred.
Furthermore, as to the corporate consolidation to be executed from the beginning of the current firstquarter consolidated accounting period onwards, we changed to a method to reflect the review of the
distribution amount of acquisition costs by the fixation of temporary accounting disposal in the quarterly
financial statements of the quarterly consolidated period to which the date of corporate consolidation
belongs.
In addition, we changed the representation of the net income etc. and changed the representation fromminority interests to non-controlling interests. In order to reflect the changes of these representations, as tothe previous third quarter consolidated cumulative accounting period and the previous consolidated
accounting year, we changed the quarterly financial statements and consolidated financial statements.
As to the application of the Corporate Consolidation Accounting Standard etc., in accordance with thetemporary handling set forth in paragraph 58-2 (4) of the Corporate Consolidation Accounting Standard,paragraph 44-5 (4) of the Consolidated Accounting Standard and paragraph 57-4 (4) of the AccountingStandard for Business Separation etc., we are applying it from the beginning of the current first quarter
consolidated accounting period onwards.
There is no impact on the profit and loss by the above.

−4−

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2016

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(in million yen)Previous Consolidated
Accounting Year(As of March 31, 2015)

Current Third Quarter
Consolidated Accounting
Period(As of December 31, 2015)

AssetsCurrent assets
Cash and deposits

24,385

19,115

Notes receivable, accounts receivable from52,80259,016

424

1,322

0

0

completed construction contracts
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets

1,278

780

Other

1,945

2,087

‐5

‐6

80,831

82,316

3,919

3,939

156

325

17,49418,069Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

1

1

Net defined benefit assets

Deferred tax assets

9,633

10,047

Other

1,595

1,596

Allowance for doubtful accounts

‐190

‐189

Total investments and other assets

28,53329,52532,60933,790113,440

116,106

Total noncurrent assets
Total assets−5−DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2016

(in million yen)Previous Consolidated
Accounting Year(As of March 31, 2015)
Liabilities
Current liabilities
Notes payable, accounts payable for construction
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
Provision for environmental measures
Other
Total 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-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets−6−

Current Third Quarter
Consolidated Accounting
Period(As of December 31, 2015)

37,937

36,847

4,379
990
1,500

4,413
203
2,748

−
−
85
480
390
−
6,550
52,312

1,384
9
91
368
−
2
6,696
52,767

1,583
4,237
1,377
107
6
352
0
7,665
59,978

1,288
4,618
1,317
−
5
303
0
7,532
60,3004,479
4,809
36,186‐669
44,807

4,479
4,809
38,265‐673
46,880

6,797
39
1,592
8,429
225
53,462
113,440

7,200
16
1,500
8,717
207
55,806116,106DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2016

(2) Consolidated Income Statements and Consolidated Statements of Comprehensive Income(Consolidated Income Statements)(Third 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
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
Extraordinary income
Income on sales of noncurrent assets
Profit reversed from the allowance for the loss relating
to the antimonopoly law
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
Provision of loss reserve related to antimonopoly law
Total extraordinary loss
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Profit attributable to non-controlling interests
Profit attributable to owners of parent

Previous Third Quarter
Consolidated Cumulative
Period(From April 1, 2014
to December 31, 2014)
85,22374,806
10,4177,436
2,980(in million yen)
Current Third Quarter
Consolidated Cumulative
Period(From April 1, 2015
to December 31, 2015)
96,561
84,907
11,653
7,249
4,404

9
185
102
78
27
403

9
215
106
−
30
361

120
5
−
9
135
3,249

108
8
8
8
133
4,631

1
−

2
47

1

49

5
24
20
0
92
144
3,106
936
331
1,267
1,838
5
1,833

−
1
17
2
−
20
4,660
991
737
1,729
2,931
5
2,925

−7−

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2016

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

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, before tax
Total other comprehensive income
Comprehensive income(Particulars)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

Previous Third Quarter
Consolidated Cumulative
Period(From April 1, 2014
to December 31, 2014)
1,838(in million yen)
Current Third Quarter
Consolidated Cumulative
Period(From April 1, 2015
to December 31, 2015)
2,931

1,196
12
79
1,287
3,126

403
‐47
‐91
264
3,195

3,109

3,213

16

‐18

−8−

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2016

(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, anduncompleted construction contracts (consolidated)(in million yen)Previous Third Quarter
Consolidated Cumulative
PeriodCurrent Third Quarter
Consolidated Cumulative
Period(From April 1, 2014
to December 31, 2014)(From April 1, 2015
to December 31, 2015)

Net sales of uncompleted
construction contracts

Net sales of completed
construction contracts

Net sales of construction contract
orders received

AmountComponent
ratio %

AmountPrevious Consolidated
Accounting Year
(From April 1, 2014 toComponent
ratio %March 31, 2015)
Component
Amountratio %

Electrical equipment
installations

26,81722.8

22,10820.6

30,23523.0

Air-conditioning
installations

64,69955.0

63,49859.1

72,122

54.8

Plumbing

26,12222.2

21,84020.3

29,275

22.2

Total

117,639

100.0

107,447

100.0

131,633

100.0(Renovations)

54,93746.7

58,05554.0

63,987

48.6(Overseas operations)

8,547

7.3

3,615

3.4

9,929

7.5

Electrical equipment
installations

17,767

20.9

21,54522.3

26,07621.4

Air-conditioning
installations

49,95658.6

53,041

54.9

71,245

58.5

Plumbing

17,49920.5

21,97422.8

24,458

20.1

Total

85,223100.0

96,561

100.0

121,780

100.0(Renovations)

43,96951.6

51,49853.3

63,38352.0(Overseas operations)

6,422

7.5

7,564

7.8

9,718

8.0

Electrical equipment
installations

22,421

19.4

18,092

17.5

17,53019.0

Air-conditioning
installations

66,664

57.9

63,25561.2

52,79757.0

Plumbing

26,04722.7

22,10721.3

22,241

24.0

Total

115,132

100.0

103,455

100.0

92,569100.0(Renovations)

37,632

32.7

33,82532.7

27,26829.5(Overseas operations)

9,977

8.7

4,114

4.0

8,063

8.7

−9−