Business Results for the First Quarter of the Fiscal Year Ending March 31, 2020
Consolidated Basis (Japanese GAAP)
August 6, 2019
Company:CKD Corporation
ListedTSE, NSE
Stock code:
6407
URL https://www.ckd.co.jp/english/
Representative:
Kazunori Kajimoto, President
Contact:
Masafumi Kokubo, Director and Senior Executive Officer. TEL: +81-568-74-1006
Expected date of filing of quarterly securities report:
August 9, 2019
Expected starting date of dividend payment:―
Preparation of supplementary financial document:
None
None
Briefing session to explain the financial statements:(Figures of less than ¥1 million have been omitted.)1.

Consolidated business results for the First Quarter of the fiscal year ending March 31, 2020
(April 1, 2019 to June 30, 2019)(1) Consolidated operating results(% change from the previous corresponding period)
Net income attributable
Operating income
Net sales
Ordinary income
to owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
1Q FY201923,265(24.4)
284(89.8)
301(89.4)
216(89.9)
1Q FY2018
30,783
20.8
2,781
2.7
2,838
3.4
2,156
8.1
(Note) Comprehensive income First quarter of FY2019: ¥ (723) million―%
First quarter of FY2018: ¥1,483 million (39.6)%

Net income
per share

Diluted net
income per share

Yen

Yen

1Q FY2019
1Q FY2018

3.50
34.83

―
―

(2) Consolidated financial position
Total assets

Net assets

Million yen
Million yen
As of June 30, 2019
134,270
79,219As of Mar 31,2019
136,961
80,444(Reference) Shareholders’ equity As of June. 2019: ¥79,085 million
As of Mar. 2019: ¥80,306 million

Shareholders’equity ratio
%
58.9
58.6

2. Dividends
Annual dividend
End of 1Q
Yen

End of 2Q
Yen
20.00

FY2018 ended Mar. 2019―
FY2019 ending Mar. 2020―
FY2019 ending Mar.
―
4.00
2020(forecast)
Note: Revisions from recently announced dividend forecast: Yes

End of 3Q
Yen―

Year-end
Yen
8.00

Annual
Yen
28.00

―

6.00

10.00

3. Forecast of consolidated business results for the fiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020)(% change from the previous corresponding period)
Net income
Net income
Net sales
Operating income
Ordinary income
attributable toper shareowners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Yen
For the six months
46,800 (22.6)
280(90.6)
300(90.0)
210 (90.6)
3.39
ending Sept. 2019
FY2019 ending Mar.
96,500 (16.6)
930(82.9)
950(82.5)
660 (86.2)
10.66
2020
Note: Revisions from recently announced performance forecast: Yes

Notes:(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in a change in the scope of consolidation): None
(2) The application of special accounting treatment
for the preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and restatements
a. Changes in accounting policies due to revisions of accounting standards: Yes
b. Changes in accounting policies other than above a.: Nonec. Changes of accounting estimates: None
d. Restatements: None
(4) Number of shares outstanding (common stock)a. Number of shares
outstanding at the end of
1Q FY2019
period (treasury stockincluded)b. Number of treasury stock at
1Q FY2019
the end of periodc. Average number of shares
over the period (quarterly
1Q FY2019
accumulation period)

68,909,449 shares FY2018

68,909,449 shares

6,989,221 shares FY2018

6,989,136 shares

61,920,249 shares 1Q FY2018

61,915,486 shares*This quarterly flash report is exempt from the quarterly review procedures by certified public accountants or
accounting auditors.
*Notes on the appropriate use of business forecasts and other special instructions
The performance forecasts and other forward-looking statements presented in this report are based on information
currently available and certain assumptions deemed to be reasonable. Actual performance, etc. may differ substantially
due to various factors.
For the special instructions regarding the appropriate use of business forecasts, refer to “1. Quarterly business results (3)Earnings forecast and outlook” on page 3 of the attached materials.

Table of Contents of Supplementary Materials
1. Quarterly business results ..................................................................................................................... 2(1) Results of operations ....................................................................................................................... 2(2) Financial position ............................................................................................................................. 2(3) Earnings forecast and outlook ......................................................................................................... 3
2. Consolidated financial statements and major notes .............................................................................. 4(1) Consolidated balance sheets ........................................................................................................... 4(2) Consolidated statements of income/Consolidated statements of comprehensive income ............... 6
Consolidated statements of income ................................................................................................. 6
Consolidated statements of comprehensive income ....................................................................... 7(3) Notes to the consolidated financial statements ................................................................................ 8
Notes regarding assumptions as a going concern ........................................................................... 8
Notes regarding any major change in the amount of consolidated shareholders’ equity ................... 8
Segment Information, etc. ................................................................................................................ 9
3. Others ................................................................................................................................................. 10
Production, orders, and sales ............................................................................................................. 10

1

1. Quarterly business results(1) Results of operations
The Japanese economic continued improving employment and income, but slowed down in the first quarter of theconsolidated fiscal year under review. Corporate earnings dropped in manufacturing businesses due mainly to sluggish
exports to China, and postponement of capital investments in automation and labor-saving were observed.
In overseas, with the increased tariffs in the US and China, US exports to China decreased while internal demand in
the US remained strong for solid consumer spending with improving employment and income. On the other hand,once strong capital investment in China is becoming weak due to decreased exports to the US. Also, in Europe,
stagnation in manufacturing business continued due to downturn in the external demand.
Under these circumstances, the CKD Group recorded consolidated results through the first quarter of the consolidated
fiscal year under review as follows:. Net sales were ¥23,265 million, down 24.4% year on year, operating income
amounted to ¥284 million, down 89.8% year on year, and ordinary income was ¥301 million, down 89.4% year on year.
Net income attributable to owners of parent was ¥216 million, down of 89.9% from year on year.
Results of operations by segment
a. Automatic Machineries Products
Sales of industrial machinery increased in lithium-ion battery production systems. And sales of automatic packaging
systems for pharmaceuticals and food also increased.
As a result, sales in this segment were ¥2,793 million, up 13.2% year on year, and the segment income, with improved
profitability, was ¥308 million compared to segment loss of ¥127 million in the same quarter of the previous year.
b. Component Products
In the domestic market, sales decreased drastically in the semiconductor manufacturing equipment industry, for theindustry being affected by shrinking capital investment, and so as in the machine tool industry, for the industry being
affected by downturn of China economy.
In overseas markets, sales decreased, for capital investment for the automation in China becoming slow, in addition to
postponement of capital investment for semiconductor manufacturing equipment.
As a result, net sales decreased to ¥20,471 million, down 27.7% year on year, and segment income decreased to¥1, 040 million, down 75.3% year on year.

(2) Financial position
The total assets at the end of the first quarter on a consolidated basis was ¥134,270 million, down ¥2,691 million fromthe end of the previous fiscal year. The main factors included increases in cash and deposits, despite decreases innotes and accounts receivable-trade and inventories.
Total liabilities were ¥55,050 million, down ¥1,466 million from the end of the previous fiscal year. This was mainly due
to an increase in accrued bonuses, despite decreases in notes and accounts payable-trade, provision for bonuses andlong-term loans payable.
Total net assets were ¥79,219 million, down ¥1,225 million from the end of the previous consolidated fiscal year.
The shareholders’ equity to asset ratio was 58.9%, 0.3 point increase from the previous consolidated fiscal year.

2(3) Earnings forecast and outlook
For the forecast of consolidated performance for the second quarter, sales in component products are expected to be below
the previously announced forecasts due to impacts of the US-China trade friction, postponement of capital investment for
semiconductor manufacturing equipment and other factors.
Also, for profits, although the Company has tried to reduce costs, in addition to decreasing sales, the factory utilization rate
decreased, and percentages of fixed costs increased. For these reasons, operating income, ordinary income, and net
income attributable to owners of the parent company are expected to be below the previously announced forecasts.
For the forecast of consolidated performance for the full fiscal year, in addition to expectations for the second quarter of the
fiscal year, there were concerns about the impacts of the review of special treatment for exports to South Korea and otherfactors, resulting in expecting to be behind the timing to recover demand which was expected in beginning of the current
fiscal period.
For these reasons, sales, operating income, ordinary income, and net income attributable to owners of the parent company
are expected to be below the previously announced forecasts.
Therefore the Company has announced the revisions in the forecasts for consolidated performance for the second quarterand the full fiscal year, which were previously announced on May 15, 2019, as follows:
Please note that the assumption for an exchange rate of ¥105 to one U.S. dollar has been used for the period from
July 1, 2019, to March 31, 2020.
Revisions in the forecast of consolidated performance for the second quarter of the fiscal year ending March 31, 2020
(April 1, 2019 to September 30, 2019)

Net sales

Operating income

Ordinary income(Million yen)
Net income
attributable toowners of parent

Previous forecast（A）

50,000

1,400

1,400

1,000

Revised forecast（B）

46,800

280

300

210

Change（B—A ）(3,200)(1,120)(1,100)(790)

Percentage change(6.4)(80.0)(78.6)(79.0)

60,455

2,979

2,988

2,235

For reference: Previous
performance(Through the second
quarter of the fiscal year
ended March 31, 2019)

Revisions in the forecast of consolidated performance for the full fiscal year (April 1, 2019 to March 31, 2020)

Net sales

Operating income

Ordinary income(Million yen)
Net income
attributable toowners of parent

Previous forecast（A）

106,000

5,700

5,700

4,000

Revised forecast（B）

96,500

930

950

660

Change（B—A ）(9,500)(4,770)(4,750)(3,340)Percentage change(9.0)(83.7)(83.3)(83.5)

115,665

5,429

5,425

4,793

For reference: Previous
performance(Though the full fiscal
year ended
March 31, 2019)

These projections are based on information available as of the time of this release. The actual results may differ due tovarious factors.

3

2. Consolidated financial statements and major notes(1) Consolidated balance sheets(Million yen)
As of March 31, 2019

As of June 30, 2019

AssetsCurrent assets
Cash and deposits

12,463

14,638Notes and accounts receivable-trade
Electronically recorded monetary claimsoperating
Operating accounts receivable
Merchandise and finished goods

22,95821,639

4,933

4,266

242
10,020223
8,989

Work-in-process
Raw materials and supplies

4,170
25,678

5,545
24,386

Other
Allowance for doubtful accounts

3,009
(30)

1,389
(26)

Total current assets

83,447

81,052

Buildings and structures (net)Other (net)20,79921,845

20,58622,150Total property, plant and equipment

42,64442,737

2,376

2,194

Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets

8,492

8,285

Total noncurrent assets

53,51353,217

136,961

134,270

Total assets

4

(Million yen)
As of March 31, 2019

As of June 30, 2019

Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating

12,681
2,326

10,620
1,992

Short-term loans payable
Current portion of bonds

11,78945

11,99538

Income taxes payable
Provision for bonuses

582
2,157

358
1,288

Other provision
Other

580
7,168

479
9,777

Total current liabilities

37,33236,551

146
16,645146
15,845

89
408

89
413

Noncurrent liabilities
Bonds payable
Long-term loans payable
Other provision
Net defined benefit liabilities
Other

1,893

2,004

Total noncurrent liabilities

19,183

18,49856,51655,050Capital stock
Capital surplus

11,016
12,39011,016
12,390Retained earnings
Treasury stock

59,119(4,905)58,835(4,905)

Total shareholders' equity

77,61977,335

2,117

1,826

1,427
(858)

717
(794)

2,686

1,749

Total liabilities
Net assets
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
Non-controlling interests
Total net assets
Total liabilities and net assets

5

138

133

80,444

79,219136,961

134,270

(2) Consolidated statements of income/Consolidated statements of comprehensive income
Consolidated statements of income(Million yen)
FY2018FY2019(April 1, 2018 to June 30, 2018) (April 1, 2019 to June 30, 2019)
Net sales

30,78323,265

Cost of sales

21,756

17,639Gross profit

9,026

5,625

Selling, general and administrative expenses

6,245

5,341

Operating income

2,781

284

4
77

4
68

Non-operating income
Interest income
Dividends income
Share of profit of entities accounted for using
equity method
Other

―

0

134

97

Total non-operating income

216

171

15

51

43

36

0

―

34
44

1
41

Non-operating expenses
Interest expenses
Sales discounts
Share of loss of entities accounted for using equity
methodLoss on valuation of derivatives
Foreign exchange losses
Other

20

22

Total non-operating expenses

159

154

2,838

301

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

2

1

Gain on sales of investment securities
Subsidy income

20
100

―
―

Total extraordinary income

1231

Extraordinary loss
Loss on sales of noncurrent assets

0―Loss on retirement of noncurrent assets
Loss on reduction of noncurrent assets

9
100

24
―

Total extraordinary loss

110

24

Income before income taxes

2,851

278

Income taxes-current

1,230

268

Income taxes-deferred

(550)

(209)

Total income taxes

680

59

2,171

219

14

2

2,156

216

Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

6

Consolidated statements of comprehensive income(Million yen)
FY2018FY2019(April 1, 2018 to June 30, 2018) (April 1, 2019 to June 30, 2019)
Net income
Other comprehensive income

2,171

219

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(522)
(231)

(290)
(716)

Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

65

64

(0)

(0)

(688)

(943)

Comprehensive income

1,483

(723)

(Details)
Comprehensive income attributable to owners of theparentComprehensive income attributable to noncontrolling interests

1,469

(719)

13

(4)

7

(3) Notes to the consolidated financial statements
Notes regarding assumptions as a going concern
Not applicable
Notes regarding any major change in the amount of consolidated shareholders’ equity
Not applicable
Changes in accounting policies
Effective as from this first quarter of the consolidated fiscal year under review, the International Financial ReportingStandard 16 Lease (“IFRS 16”) has been applied to the subsidiaries which apply the International Financial ReportingStandard. With this change, a lessee, in principle, reports all the leases as the Assets and the Liabilities, and transfers
certain assets reported in the “Intangible assets” to the “Property, plant and equipment”. To apply IFRS 16, the Company
observes transition practices, and the cumulative changes affected by this change are reported in the “Retained earnings”
at the beginning of this first quarter of the consolidated fiscal year under review.
As a result, the “Other” account under the “Property, plant and equipment” was increased by ¥456 million, and the “Other”
account under the “Current liabilities” was increased by ¥169 million, and the “Other” account under the “Noncurrent
liabilities” was increased by ¥155 million respectively, and the “Intangible assets” was decreased by ¥138 million at theend of this first quarter of the consolidated fiscal year under review. Effect of these changes to the “Consolidated
statement of income” is insignificant

8

Segment information, etc.
Segment information
First quarter of the fiscal year ended March 31, 2019 (April 1, 2018 to June 30, 2018)
1. Information on reporting-segment-wise sales, income (loss)(Million yen)
Reporting segment
Automatic
MachineriesComponents

Total

Amount Adjusted(Note 1)

Consolidated(Note 2)

Net sales
2,468

28,31430,783―30,783

―

19

19

(19)

―

Total

2,468

28,33330,802(19)

30,783

Segment income (loss)

(127)

4,210

4,082

(1,301)

2,781

Sales to external customers
Intersegment sales ortransfers

Notes: 1. The amount of adjustment for ‘Segment income (loss)’ of ¥(1,301) million includes ¥7 million for elimination oftransactions among segments and ¥(1,309) million as the total company expenses that are not allocated toeach reporting segment. The total company expenses mainly refers to expenses related to administration andlong-term R&D expenses of CKD and costs related to CKD Global Service Corporation.
2. ‘Segment income (loss)’ has already been adjusted with operating income shown in the consolidated
statement of income.
First quarter of the fiscal year ending March 31, 2020 (April 1, 2019 to June 30, 2019)
1. Information on reporting-segment-wise sales, income (loss)(Million yen)
Reporting segment
Automatic
MachineriesComponents

Total

Amount Adjusted(Note 1)

Consolidated(Note 2)

Net sales
Sales to external customers
Intersegment sales ortransfers
Total
Segment income

2,793

20,471

23,265―23,265

―

46

46

(46)

―

2,793

20,51723,311(46)

23,265

308

1,040

1,349

(1,065)284

Notes: 1. The amount of adjustment for ‘Segment income’ of ¥(1,065) million includes ¥7 million for elimination oftransactions among segments and ¥(1,072) million as the total company expenses that are not allocated toeach reporting segment. The total company expenses mainly refers to expenses related to administration andlong-term R&D expenses of CKD and costs related to CKD Global Service Corporation.
2: ‘Segment income’ has already been adjusted with operating income shown in the consolidated statement ofincome.

93. Others
Production, orders, and sales[1] Actual production
Actual production by reporting segment in the first quarter of the fiscal year under review are as follows.
Production output
Segment name
Change YoY (%)(Million yen)
Automatic machineries

2,256(28.9)

Components

19,514(33.7)

Total

21,771(33.3)

Notes: 1. Intersegment transactions have been offset and eliminated.
2. Amounts are based on sales prices.
3. Above figures are exclusive of consumption tax.
[2] Actual orders
Actual orders by reporting segment in the first quarter of the fiscal year under review are as follows.
Segment nameAutomatic machineries

Orders(Million yen)

Change YoY (%)

4,621

+11.0

Order backlog(Million yen)

Change YoY (%)

14,221+15.0

Notes: 1. Production is carried out by expected demand, excluding the Automatic machineries segment.
2. Above figures are exclusive of consumption tax.

[3] Actual sales
Actual sales by business segment in the first quarter of the fiscal year under review are as follows.
Segment nameSales (Million yen)

Change YoY (%)

Automatic machineries

2,793

+13.2

Components

20,471(27.7)

Total

23,265(24.4)

Notes: 1. Intersegment transactions have been offset and eliminated.
2. Above figures are exclusive of consumption tax.

10