Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020
[Japanese Standard] (Consolidated)
November 7, 2019

Name of listed company: DAI-DAN Co., Ltd.
Stock Exchange Listing:Code No.: 1980 URL: https://www.daidan.co.jp/
Tokyo Stock Exchange 1st section
Representative of Company: Ichiro Fujisawa, Representative Director, President
Inquiries to be addressed to: Yasuo Kamei, Director, Executive Corporate Officer,
Head of General Administration
Tel. (06) 6447 - 8003
Date scheduled to submit Quarterly report:
November 7, 2019
Date scheduled for dividend payment commencement:
December 2, 2019
Creating supplements to the financial statement:
Yes
Holding a briefing session on the financial statement:
Yes (for instituted investors and analysts)(Amounts are indicated with figures less than 1 million yen discarded)

1. Consolidated business results for the Second quarter of the period ending March 2020 (From April 1, 2019 to September 30, 2019)(Percentage indications show increase or decrease from the previous period.)(1) Consolidated management performance (Cumulative total)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Second quarter of the78,917
13.3
4,091
12.1
4,230
7.4
period ending March 2020
Second quarter of the69,677
2.3
3,649
14.0
3,939
13.5
period ending March 2019
(Note)
Comprehensive income Second quarter of the period ending March 2020 2,786 Million yen (6.1%)
Second quarter of the period ending March 2019 2,967 Million yen 3.1%

Profit per share

%

2,897

9.5

2,645

15.1

Diluted Profit per share

Yen SenYen Sen131.43―118.67―

Second quarter of theperiod ending March 2020
Second quarter of theperiod ending March 2019

Million yen(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity capital ratio

Million yen

Second quarter of the122,014
67,331
period ending March 2020
Period ending March 2019
120,728
66,390(Reference) Equity capital
Second quarter of the period ending March 2020 67,149 Million yen
Period ending March 2019 66,217 Million yen

Net assets per share%

Yen Sen55.0

3,056.99

54.8

2,970.59

2. Dividends
End of first quarter
Yen Sen――Annual dividends per share
End of second quarter End of third quarter
Yen Sen
28.00
40.00

Yen Sen―

Period end
Yen Sen
48.00

Through year

Period ending March 2019
Period ending March 2020
Period ending March 2020―
50.00
(Forecast)(Note 1)
Presence of revision from dividend forecast published most recently: Yes(Note 2)
Breakdown of dividend at the end of the period ending March 2019: ordinary dividend 28.00 yen and special dividend 20.00 yen

Yen Sen
76.00
90.00

3. Estimate of consolidated performance for the period ending March 2020 (From April 1, 2019 to March 31, 2020)(Percentage indications show increase or decrease from the previous period.)

Net sales
Mil. yen%

Operating profit

Ordinary profit

Mil. yenMil. yen%

Profit attributable toowners of parent%

Mil. yen%

161,000
3.5
8,000
4.4
8,200
1.8
Total period(Reference)
Estimated net sales of construction contract orders (Total period) 161,000 Million yen(Note)
Presence of revision from estimate of performance published most recently: None

5,700

4.3

Profit per share
Yen

Sen
255.71* Annotations(1) Changes in key subsidiaries in the current quarter consolidated cumulative period (changes in specific subsidiaries requiringchanges 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, restatement
 Changes in accounting policies due to revision of accounting standards, etc.: None
 Changes in accounting policies other than : None
 Changes in accounting estimates: None Restatement: None
(4) Number of issued shares (common stock) Number of issued shares at the end of
period (including treasury shares)
 Number of treasury shares at the end of
period Average number of shares in the period(quarter total)

Second quarter of
Period ending
period ending
22,981,901 shares
March 2019
March 2020
Second quarter of
Period ending
period ending
1,016,063 shares
March 2019
March 2020
Second quarter ofSecond quarter
period ending
22,047,113 shares of period ending
March 2020
March 2019

22,981,901 shares
690,998 shares
22,291,510 shares* Brief report on quarterly financial statements is beyond the object of audit by CPA or an audit corporation.
* 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 the above forecasts and forecasts of business results, please refer to the Section “1. Qualitative Information
on Current Quarter Business Settlement, (4) Explanation on Future Estimate Information such as Estimate of Consolidated
Performance” on page 3.

(Reference) Estimate of individual performance
Estimate of individual performance for the period ending March 2020 (From April 1, 2019 to March 31, 2020)(Percentage indications show increase or decrease from the previous period.)

Net sales
Mil. yen

Ordinary profit

Mil. yenMil. Yen%

ProfitProfit per share%

Mil. yen%

Yen Sen160,000
4.0
8,000
5.2
8,200
2.6
Estimated net sales of construction contract orders (Total period) 160,000 Million yen
Presence of revision from estimate of performance published most recently: None

5,700

5.0

255.71

Total period(Reference)(Note)%

Operating profit

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020

 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) Situations of Cash Flows....................................................................................................................................3(4) Explanation on Future Estimate Information such as Estimate of Consolidated Performance ..........................3
2. Consolidated Financial Statements and Major Notes ..............................................................................................4(1) Consolidated Balance Sheets .............................................................................................................................4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ........................6(Consolidated Statements of Income)(Second Quarter Consolidated Cumulative Period) .........................................................................................6(Consolidated Statements of Comprehensive Income)(Second Quarter Consolidated Cumulative Period) .........................................................................................7(3) Consolidated Statements of Cash Flows ............................................................................................................8(4) Annotation Items Concerning Quarterly Consolidated Financial Statements ..................................................10(Notes to Going Concern Assumption) ..........................................................................................................10(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ..........................................10
3. Supplementary Information ...................................................................................................................................10
Divisional net sales of construction contract orders received, completed construction contracts, anduncompleted construction contracts (consolidated) ..............................................................................................10

1

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020

1. Qualitative Information on Current Quarter Business Settlement(1) Explanation on Operating Results
Net sales of construction contract orders received in the current second quarter consolidated accounting
period increased by 8,251 million yen or 10.4% from the same quarter consolidated cumulative period of theprevious year, resulting in 87,902 million yen.
Net sales of completed construction contracts increased by 9,240 million yen or 13.3% from the samequarter consolidated cumulative period of the previous year, resulting in 78,917 million yen.
Gross profit on completed construction contracts increased by 730 million yen or 8.0% from the samequarter consolidated cumulative period of the previous year, resulting in 9,870 million yen, due to theincrease in the net sales of completed construction contracts.
Operating profit increased by 442 million yen or 12.1% from the same quarter consolidated cumulative
period of the previous year, resulting in 4,091 million yen, due to the increase in the gross profit oncompleted construction contracts.
Ordinary profit increased by 291 million yen or 7.4% from the same quarter consolidated cumulative periodof the previous year, resulting in 4,230 million yen, due to the increase in the operating profit, even thoughforeign exchange gains of 31 million yen that occurred in the previous second quarter consolidated
accounting period turned to foreign exchange losses of 87 million yen in the current second quarter
consolidated accounting period.
Profit attributable to owners of parent increased by 252 million yen or 9.5% from the same quarter
consolidated cumulative period of the previous year, resulting in 2,897 million yen, after posting the gain on
sales of investment securities of 108 million yen, etc. as extraordinary income, the loss on retirement of noncurrent assets of 73 million yen, etc. as extraordinary losses, as well as deducting the income tax - current,
income taxes - deferred, and the profit attributable to non-controlling interests.

(2) Explanation on Financial Conditions(Assets)
Current assets at the end of the current second quarter consolidated accounting period increased by 1,821
million yen or 2.0% from the end of the previous consolidated accounting year, resulting in 90,735 million
yen. The main factor for this is the increase of 10,709 million yen or 83.6% in cash and deposits. Noncurrent assets decreased by 536 million yen or 1.7% from the end of the previous consolidated accounting
year, resulting in 31,278 million yen. The main factor for this is the decrease of 469 million yen or 2.9% ininvestment securities.
As a result, total assets decreased by 1,285 million yen or 1.1% from the end of the previous consolidated
accounting year, resulting in 122,014 million yen.
(Liabilities)
Current liabilities at the end of the current second quarter consolidated accounting period decreased by 213
million yen or 0.4% from the end of the previous consolidated accounting year, resulting in 49,365 million
yen. The main factor for this is the decrease of 544 million yen or 34.6% in advances received on
construction contracts in progress. Non-current liabilities increased by 557 million yen or 11.7% from theend of the previous consolidated accounting year, resulting in 5,317 million yen. The main factor for this is
the increase of 385 million yen or 20.3% in deferred tax liabilities.
As a result, total liabilities increased by 344 million yen or 0.6% from the end of the previous consolidated
accounting year, resulting in 54,682 million yen.
(Net Assets)
Total net assets at the end of the current second quarter consolidated accounting period increased by 941
million yen or 1.4% from the end of the previous consolidated accounting year, resulting in 67,331 million
yen. The main factor for this is the increase of 1,827 million yen or 3.6% in retained earnings.
As a result, the equity capital ratio resulted in 55.0% (54.8% at the end of the previous consolidated
accounting year).

2

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020

(3) Situations of Cash Flows
Cash and cash equivalents (hereinafter referred to as "fund") in the current second quarter consolidated
accounting period increased by 10,709 million yen from the end of the previous consolidated accounting
year, resulting in 23,485 million yen. The situations of each cash flows and their factors in the current
second quarter consolidated accounting period are as follows.
(Cash flows from operating activities)
As a result of the operating activities, the increased fund resulted in 12,840 million yen (increase by 2,569
million yen of the fund in the same quarter consolidated cumulative period of the previous year). The main
factor for this are the posting of profit before income taxes and the decrease in notes and accounts
receivable.
(Cash flows from investing activities)
As a result of the investing activities, the decreased fund resulted in 286 million yen (decrease by 38 million
yen of the fund in the same quarter consolidated cumulative period of the previous year). The main factor forthis is that the purchase of property, plant and equipment.
(Cash flows from financing activities)
As a result of the financing activities, the decreased fund resulted in 1,826 million yen (decrease by 660 million
yen of the fund in the same quarter consolidated cumulative period of the previous year). The main factor forthis are the purchase of treasury shares and the cash dividends paid.
(4) Explanation on Future Estimate Information such as Estimate of Consolidated Performance
There is no change in the estimate of performance for a full accounting year published on May 9, 2019.

3

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020

2. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Millions of yen)Previous Consolidated
Accounting Year(As of March 31, 2019)
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts
Electronically recorded monetary claims - operating
Costs on construction contracts in progress
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

Current Second Quarter
Consolidated Accounting
Period(As of September 30, 2019)12,80323,51358,08852,252

14,814
509
2,705
(8)
88,913

9,581
758
4,637
(8)
90,735

5,198
457

5,155
384

16,129
8,675
1,536
(183)
26,15931,815
120,728

15,660
8,699
1,549
(171)
25,73831,278122,014DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020

(Millions of yen)Previous Consolidated
Accounting Year(As of March 31, 2019)
Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts
Electronically recorded obligations - operating
Short-term loans payable
Income taxes payable
Advances received on construction contracts inprogress
Provision for bonuses
Provision for directors' bonuses
Provision for share-based remuneration
Provision for warranties for completed construction
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Provision for foreign investment loss
Long-term accounts payable - other
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
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

5

Current Second Quarter
Consolidated Accounting
Period(As of September 30, 2019)

20,763

21,459

9,796
3,826
1,149

10,188
3,661
1,007

1,574

1,030

―
―
―
85
138
12,24449,578

2,496
50
17
79
61
9,315
49,365

1,543
1,903
1,299
5
6
0
4,759
54,338

1,727
2,289
1,286
7
6
0
5,317
54,682

4,479
4,809
51,412(690)
60,011

4,479
4,897
53,240(1,553)61,064

6,172
22
10
6,205
172
66,390120,728

6,080
27
(22)
6,085
181
67,331122,014DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Second Quarter Consolidated Cumulative Period)(Millions of yen)

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 profit
Non-operating income
Interest income
Dividend income
Insurance fee income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Guarantee commission
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

Previous Second Quarter
Consolidated Cumulative
Period(From April 1, 2018
to September 30, 2018)
69,67760,536
9,140
5,491
3,649

Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2019
to September 30, 2019)78,917
69,046
9,870
5,779
4,091

5
195
107
31
27
367

5
196
90
―
18
310

61
3
―
11
77
3,939

62
2
87
19
171
4,230

―
―
―

108
70
179

―
―
―
―
3,939
856
448
1,305
2,634
(11)
2,645

73
51
55
180
4,229
886
440
1,327
2,902
4
2,897

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020

(Consolidated Statements of Comprehensive Income)(Second Quarter Consolidated Cumulative Period)(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Previous Second Quarter
Consolidated Cumulative
Period(From April 1, 2018
to September 30, 2018)
2,634

Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2019
to September 30, 2019)
2,902

299
(11)
45
333
2,967

(92)
9
(32)
(115)
2,786

2,984

2,777

(16)

8

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020

(3) Consolidated Statements of Cash Flows(Millions of yen)Previous Second Quarter
Current Second Quarter
Consolidated Cumulative Period Consolidated Cumulative Period(From April 1, 2018
(From April 1, 2019
to September 30, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Increase (decrease) in allowance for foreign
investment loss
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss (gain) on liquidation of subsidiaries andassociates
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in costs on construction contracts
in progress
Decrease (increase) in other current assets
Decrease (increase) in other non-current assets
Decrease (increase) in retirement benefit asset
Increase (decrease) in trade payables
Increase (decrease) in advances received on
construction contracts in progress
Increase (decrease) in other current liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities

8

to September 30, 2019)

3,939
223
(1)
16
(200)
61

4,229
223
(12)
(3)
(201)
62

(0)

1

―
―

55
(57)

―

(70)

―
2,184

73
11,068

(760)

(248)

707
1
(259)
(1,420)(1,906)
11
(80)
1,086

78

(544)

(406)
4,164
200
(62)
(1,732)2,569

27
13,714201(62)(1,012)
12,840DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020

(Millions of yen)Previous Second Quarter
Current Second Quarter
Consolidated Cumulative Period Consolidated Cumulative Period(From April 1, 2018
(From April 1, 2019
to September 30, 2018)
Cash flows from investing activities
Purchase of property, plant and equipment
Payments for retirement of property, plant andequipment
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Loan advances
Collection of loans receivable
Proceeds from liquidation of subsidiaries andassociates
Other payments
Other proceeds
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from disposal of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9

to September 30, 2019)
(97)

(649)

―

(1)

(2)

(2)

2

323

(1)
0

(0)
0

―

88

(42)
102
(38)

(66)
21
(286)

18,280(18,280)
1,100(1,023)
(0)
―
(735)
(660)

19,580(19,680)
1,225(1,106)(1,078)303(1,069)(1,826)

(3)

(18)

1,866
27,85829,724

10,70912,77623,485DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2020

(4) 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

3. Supplementary Information
Divisional net sales of construction contract orders received, completed construction contracts, and uncompleted
construction contracts (consolidated)(Millions of yen)

Net sales of uncompleted
construction contracts

Net sales of completed
construction contracts

Net sales of construction
contract orders received

Previous Second Quarter
Consolidated Cumulative
Period(From April 1, 2018
to September 30, 2018)
Component
Amountratio %

Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2019
to September 30, 2019)
Component
Amountratio %

Increase(decrease)

AmountRatio %

Electrical installations

10,20012.8

11,140

12.7

939

9.2

Air conditioning
installations

49,30761.9

55,288

62.9

5,981

12.1

Plumbing installations

20,14325.3

21,473

24.4

1,330

6.6

Total

79,650100.087,902

100.0

8,251

10.4

(Industrial facilities)

28,32435.6

27,22531.0

ሺ1,099ሻሺ3.9ሻ

(Renovations)

40,82851.3

45,321

51.6

4,493

11.0

(Overseas operations)

4,890

6.1

3,765

4.3

ሺ1,124ሻሺ23.0ሻ

Electrical installations

11,27516.2

12,029

15.2

754

6.7

Air conditioning
installations

41,13959.0

47,963

60.8

6,824

16.6

Plumbing installations

17,26224.8

18,924

24.0

1,661

9.6

Total

69,677100.0

78,917

100.0

9,240

13.3

(Industrial facilities)

22,321

32.0

24,527

31.1

2,206

9.9

(Renovations)

31,28744.9

37,985

48.1

6,698

21.4

(Overseas operations)

2,861

4.1

2,980

3.8

118

4.1

Electrical installations

13,096

10.0

14,579

11.0

1,482

11.3

Air conditioning
installations

85,31965.5

84,827

64.1

ሺ492ሻ

ሺ0.6ሻ

Plumbing installations

31,92524.5

32,914

24.9

989

3.1

Total

130,341100.0

132,321

100.0

1,979

1.5

(Industrial facilities)

39,09930.0

39,764

30.1

665

1.7

(Renovations)

32,83325.2

39,540

29.9

6,706

20.4

(Overseas operations)

4,118

3.2

5,788

4.4

1,669

40.5

10