Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017
[Japanese Standard] (Consolidated)
November 9, 2016

Name of listed company: DAI-DAN Co., Ltd.
Code No.:1980

Stock Exchange Listing:Tokyo Stock Exchange 1st section
Tel. (06) 6447 - 8003

URL: http://www.daidan.co.jp/

Representative of Company: Shohei KITANO, Representative Director, President
Inquiries to be addressed to: Takayuki IKEDA, Director, Senior Executive Corporate Officer, Head of General Administration
Division
Date scheduled to submit Quarterly report:
November 10, 2016
Date scheduled for dividend payment commencement:
December 1, 2016
Creating supplements to the financial statement:
None
Holding a briefing sessions on the financial statement:
Yes(Amounts are indicated with figures less than 1 million yen discarded)

1. Consolidated business results for the second quarter of the period ending March 2017 (From April 1, 2016 to September 30, 2016)(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%
Second quarter of the
58,706
-4.1
3,085
29.5
2,912
14.9
period ending March 2017
Second quarter of the61,235
12.1
2,382
50.3
2,535
43.0
period ending March 2016
(Note) Comprehensive income Second quarter of the period ending March 2017 1,052 Million yen (7.4 %)Second quarter of the period ending March 2016 979 Million yen (-40.4 %)Net income per share

Net income per shareafter making potential
share adjustments

Yen

Yen

Second quarter of theperiod ending March 2017
Second quarter of theperiod ending March 2016

Sen

Million yen

%

1,833

16.6

1,572

68.9

Sen

41.10
35.25

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity capital ratio%

Net assets per share
Yen
Sen

51.0

1,232.71

44.5

1,219.41

Million yen

Second quarter of the107,680
55,143
period ending March 2017
122,31254,583
Period ending March 2016
(Reference) Equity capital Second quarter of the period ending March 2017 54,970 Million yen
Period ending March 2016 54,379 Million yen

2. Dividends
Annual dividends per share
End of second quarter End of third quarterEnd of first quarter
Yen
Period ending March 2016
Period ending March 2017

Sen

Yen

Sen
9.00
10.00

Yen

Period end

Sen

Period ending March 2017
(Forecast)Through year

Yen Sen
11.00

Yen Sen
20.00

10.00

20.00

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

3. Estimate of consolidated performance for the period ending March 2017 (From April 1, 2016 to March 31, 2017)(percentage indications show increase or decrease from the previous period)

Net sales

Operating income

Ordinary income

Mil. yenMil. yen%Mil. yen%%
138,000
-0.3
6,500
-0.6
6,500
-4.0
(Note) Presence of revision from dividend forecast published most recently: None
(Reference) Estimated net sales of construction contract orders (Total period) 143,000 Million yen

Total period

Profit attributable Net income per shareto owners of parent
Mil. yen
4,000

%
-5.9

Yen

Sen
89.69

* 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.: Yes
 Changes in accounting policies other than : None
 Changes in accounting estimates: None Restatement: None
(Note) For details, please refer to Attached Data p.3 “2. Items Concerning Summary Information (Annotation).”(4) Number of issued shares (common stock) Number of issued shares at the end of period (including treasury stock)
Second quarter of period ending March 2017 45,963,803 shares Number of treasury stock at the end of period
Second quarter of period ending March 2017 1,370,537 shares Average numbers of shares in the period (Quarter total)
Second quarter of period ending March 2017 44,594,659 shares

Period ending March 2016

45,963,803 shares

Period ending March 2016

1,368,636 shares

Second quarter of period ending March 2016
44,599,703 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 2017 (From April 1, 2016 to March 31, 2017)
Net sales(percentage indications show increase or decrease from the previous period)
Net income per
Operating income Ordinary income
Net income
share%Mil. yen% Mil. yen
Mil. yen% Mil. yen
137,000
-0.1
6,500
0.2
6,500
-3.3
4,000
(Note) Presence of revision from dividend forecast published most recently: None
(Reference) Estimated net sales of construction contract orders (Total period) 142,000 Million yen

Total period

%
-5.1

Yen

Sen
89.69

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017

 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 concerning the future foresight information such as the consolidated operating results foresight 3
2. Items Concerning Summary Information (Annotations)................................................................................. 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, Restatement ...................................... 3
3. Consolidated Financial Statements............................................................................................................... 4(1) Consolidated Balance Sheets .................................................................................................................. 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ..................... 6(Consolidated Statements of Income) ....................................................................................................... 6(Second Quarter Consolidated Cumulative Period) ..................................................................... 6(Consolidated Statements of Comprehensive Income) ............................................................................... 7(Second Quarter Consolidated Cumulative Period) ..................................................................... 7(3) Consolidated Statement 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
4. Supplementary Information ....................................................................................................................... 10
Divisional net sales of construction contract orders received, completed construction contracts, and uncompleted
construction contracts (consolidated) ......................................................................................................... 101

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017

1. Qualitative Information on Current Quarter Business Settlement(1) Explanation on Operating Results
Due to the slow-down of the businesses in China and Asian emerging countries, the elevation of prudent
posture against the heightening interest in the U.S. and the disturbance after the decision of monetary policyby the Bank of Japan, the Japanese economy in the current second quarter consolidated cumulative period
continued to be unstable such as the settlement of the tendency of stronger yen in the exchange market andthe stagnancy of high-level corporate profits.
In the construction industry, the solid will of investment was seen such as public investment which steadilytransitioned and private equipment investment which stayed to be a minor downward revision comparedwith the decrease of the profit foresight of companies.
Under the circumstances, based on our mid-term management plan “Dai-Dan to Create and Supply
Environments Necessary for Customers-Always with You,” we tackled the securing of orders and incomes
and as a result, our operating results in the current 1st quarter consolidated accumulative period became asfollows.
Net sales of construction contract orders received increased by 11,524 million yen from the same quarter
consolidated accumulative period of the previous year, resulting in 83,492 million yen.
Net sales of completed construction contracts decreased by 2,528 million yen from the same quarter
consolidated accumulative period of the previous year, resulting in 58,706 million yen.
Gross profit on completed construction contracts increased by 1,184 million yen from the same quarter
consolidated accumulative period of the previous year, resulting in 8,433 million yen thanks to theimprovement of the income rate of gross profit on completed construction contracts.
Influenced by the increase of the gross profit on completed construction contracts, operating income
increased by 703 million yen from the same quarter consolidated accumulative period of the previous year,
resulting in 3,085 million yen.
Ordinary income resulted in 2,912 million yen, increasing by 377 million yen from the same quarter
consolidated cumulative periods of the previous year thanks to the increase etc. of operating income, thoughforeign exchange losses resulted in 359 million yen, increasing by 336 million yen from the same quarter
consolidated cumulative period of the previous year.
Profit attributable to owners of parent posted a loss of 76 million yen due to loss on disaster as an
extraordinary losses (loss related to the 2016 Kumamoto Earthquake), and as a result of deduction of income
taxes-current, income taxes-deferred and loss attributable to non-controlling interests, it increased by 260
million yen from the same quarter consolidated accumulative period of the previous year, resulting in 1,833
million yen.
(2) Explanation on Financial Conditions(Assets)
Current assets in the end of the current second quarter consolidated accounting period resulted in 77,424
million yen decreasing by 14,279 million yen from the end of the previous consolidated accounting year.
The main factor for this is that the decrease of notes receivable and accounts receivable from completed
construction contracts (16,219 million yen) surpassed the increase of cash and deposits (4,359 million yen).
Non-current assets resulted in 30,256 million yen decreasing by 352 million yen from the end of theprevious consolidated accounting year. The main factor for this is the decrease of investment securities(1,295 million yen). As a result, total assets resulted in 107,680 million yen decreasing by 14,632 million
yen from the end of the previous accounting year.
(Liabilities)
Current liabilities resulted in 46,089 million yen in the end of the current second quarter consolidated
accounting period, decreasing by 15,344 million yen from the end of the previous consolidated accounting
year. Main factors for this are the decrease of notes payable, accounts payable for construction contracts(15,951 million yen) and income taxes payable (853 million yen) etc. Non-current liabilities resulted in
6,447 million yen, increasing by 151 million yen compared with the end of the previous consolidated
accounting year. The main factors for this are the increase of long-term loans payable (494 million yen) etc.
As a result, total liabilities resulted in 52,536 million yen, decreasing by 15,192 million yen from the end of
the previous consolidated accounting year.
(Net Assets)
Total net assets in the end of the current second quarter consolidated accounting period resulted in 55,143
million yen, increasing by 560 million yen compared with the end of the previous consolidated accounting
year. The main factor for this is that the increase of retained earnings (1,342 million yen) etc. surpassed thedecrease of valuation difference on available-for sale securities (900 million yen). As a result, the capital2

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017adequacy ratio resulted in 51.0% (44.5% at the end of the previous consolidated accounting year).
Situations of cash flow
Cash and cash equivalents (hereinafter referred to as “fund”) during the current second quarter consolidated
period resulted in 27,896 million yen, increasing by 4,359 million yen compared with the end of the previous
consolidated accounting year. The situation of cash flows and their factors during the current 2nd quarter
consolidated cumulative period are as follows.
(Cash flows from operating activities)
As a result of the sales activities, increased fund resulted in 6,265 million yen (decrease by 2,204 million yenof the fund in the same quarter consolidated cumulative period of the previous year). Main factors for thisare that the increase factors of the fund including the posting of the quarterly profit before income taxes, thedecrease in notes and accounts receivable-trade and the increase in advances received on uncompleted
construction contracts surpassed the decrease factors of the fund such as decrease in notes and accounts
payable - trade.
(Cash flows from investing activities)
As a result of the investing activities, the decreased fund resulted in 1,243 million yen (decrease of the fundby 234 million yen in the same quarter consolidated cumulative period of the previous year). Main factors
for this are the purchase of property, plant and equipment etc.
(Cash flows from financing activities)
As a result of the financing activities, the decreased fund resulted in 562 million yen (decrease of the fund by
424 million yen in the same quarter consolidated cumulative period of previous year). Main factor for this isthat the expenditure for repayment of short-term loans payable and long-term loans payable and the payment
amount of dividends surpassed the proceeds from short-term loans payable and long-term loans payable.
(3) Explanation concerning the future foresight information such as the consolidated operating results foresight
There is no change in the prospect of operating results for a full accounting year published on May 11, 2016.

2. Items Concerning Summary Information (Annotations)(1) Changes in Major 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, Restatement(Application of the handling in administrative work related to the change of the depreciation method
related to the tax reform in 2016)
Accompanying the revision of the Corporation Tax Act, the Company applied “the Handling in
Administrative Work Related to the Change of Depreciation Method Related to the Revision of the
Corporation Tax Act” (Report for Business No.32 issued on June 17, 2016) to the current 1st quarter
consolidated accounting period, and changed the depreciation method related to buildings andaccompanying facilities and structures from declining-balance method to straight-line method. The
influence by this change is minute.

3

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(in million yen)Previous Consolidated
Accounting Year(As of March 31, 2016)

Current Second Quarter
Consolidated Accounting
Period(As of September 30, 2016)

AssetsCurrent assets
Cash and deposits

23,56327,923

Notes receivable, accounts receivable from56,15739,937

8,095

5,908

385

973

0

0

Deferred tax assets

1,392

1,068

Other

2,117

1,619

-7

-6

91,70477,424

4,178

4,708

594

733

16,543

15,247

1

1

Net defined benefit asset

7,866

8,161

Other

1,612

1,592

Allowance for doubtful accounts

-188

-188

Total investments and other assets

25,836

24,81430,60830,256

122,312

107,680

completed construction contracts
Electronically recorded monetary claims - operating
Costs on uncompleted construction contracts
Raw materials and supplies

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets

Total non-current assets
Total assets

4DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017

(in million yen)Previous Consolidated
Accounting Year(As of March 31, 2016)
Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts
Electronically recorded obligations - operating
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
Provision for environmental measures
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

Current Second Quarter
Consolidated Accounting
Period(As of September 30, 2016)

42,067

26,115

−
4,519
1,622
2,794

3,386
3,954
768
3,255

−
−
81
628
2
9,717

1,919
34
89
485
2
6,077

61,43446,089

1,401
3,208
1,376
5
303
0

1,895
2,899
1,345
7
298
0

6,295

6,447

Total liabilities

67,72952,536

Net Assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

4,479
4,809
39,588
-674

4,479
4,809
40,930-676

48,20349,544

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

6,326
20
-169

5,425
-3
4

Total accumulated other comprehensive income

6,176

5,426

203

173

54,58355,143

122,312

107,680

Total shareholders’ equity

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

5DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Second Quarter Consolidated Cumulative Period)(in million yen)

Net sales of completed construction contracts
Cost of sales of completed construction contracts

Previous Second Quarter
Consolidated Cumulative
Period(From April 1, 2015
to September 30, 2015)
61,23553,986

Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2016
to September 30, 2016)
58,70650,273Gross profit on completed construction contracts

7,248

8,433

Selling, general and administrative expenses

4,866

5,348

Operating income

2,382

3,085

7
139
94
21

2
155
104
18

262

280

71
6
22
8

69
3
359
21

109

453

2,535

2,912

1
47

0
−

49

0

1
17
2
−

2
−
−
76

Total extraordinary losses

20

79

Profit before income taxes

2,563

2,833

Income taxes-current
Income taxes-deferred

405
573

671
335

Total income taxes

978

1,006

1,585

1,827

13

-5

1,572

1,833

Non-operating income
Interest income
Dividends income
Insurance fee
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Guarantee commission
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Profit reversed from the allowance for the loss relating
to the antimonopoly law
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Loss on valuation of golf club membership
Loss on disaster

ProfitProfit (loss) attributable to non-controlling interests (-)
Profit attributable to owners of parent

6

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017

(Consolidated Statements of Comprehensive Income)(Second Quarter Consolidated Cumulative Period)(in million yen)Previous Second Quarter
Consolidated Cumulative
Period(From April 1, 2015
to September 30, 2015)
1,585

Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2016
to September 30, 2016)
1,827

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, before tax

-539
-5
-60

-900
-48
174

Total other comprehensive income

-605

-774

Comprehensive income

979

1,052

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

969
10

1,082
-30

ProfitOther comprehensive income7DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017(3) Consolidated Statement of Cash Flows(in million yen)
Current Second Quarter
Previous Second Quarter
Consolidated Cumulative Period Consolidated Cumulative Period(From April 1, 2015
(From April 1, 2016
to September 30, 2015)
to September 30, 2016)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision forenvironmental measures
Interest and dividend income
Interest expenses
Increase (decrease) in provision for foreign
investment loss
Loss (gain) on valuation of investment securities
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Increase (decrease) in loss reserve related toantimonopoly law
Loss on valuation of golf club membership
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in costs on uncompleted
construction contracts
Decrease (increase) in other current assets
Decrease (increase) in other non-current assets
Decrease (increase) in net defined benefit asset
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received on
uncompleted construction contracts
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales and redemption of
investment securities
Payments of loans receivableCollection of loans receivable
Expenditures by acquiring of other non-current assets
Revenue by sales of other non-current assets
Cash flows from investing activities

8

2,563
137
-4
-55
-105

2,833
172
-1
-18
−

-146
71
2

-157
69
2

17
-1
1
-47

−
-0
2
−

2
392

−
18,407

-643

-587

-65
4
-377
-3,976
217

551
4
-56
-12,565
460

694
-48
-1,364146-71-914-2,204-1,398
-5
7,712
157
-68
-1,536
6,265

-147
1
-2
1

-874
0
-2
0

-0
1
-104
14
-234

−
1
-398
30
-1,243

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017

(in million yen)
Current Second Quarter
Previous Second Quarter
Consolidated Cumulative Period Consolidated Cumulative Period(From April 1, 2015
(From April 1, 2016
to September 30, 2015)
to September 30, 2016)
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Cash flows from 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

918,380-17,880600-1,075
-2
-446
-424
-35

18,480-19,180
1,700-1,070
-1
-490
-562
-100

-2,89924,35821,4594,359
23,53627,896

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2017

(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

4. Supplementary Information
Divisional net sales of construction contract orders received, completed construction contracts, anduncompleted construction contracts (consolidated)(in million yen)Previous Second Quarter
Consolidated Cumulative
PeriodCurrent Second Quarter
Consolidated Cumulative
Period(From April 1, 2015
to September 30, 2015)(From April 1, 2016
to September 30, 2016)

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, 2015 toComponent
ratio %March 31, 2016)
Component
Amountratio %

Electrical equipment
installations

15,54821.6

12,021

14.4

27,70019.3

Air-conditioning
installations

42,001

58.4

54,05864.8

83,88058.5

Plumbing

14,41720.0

17,411

20.8

31,922

22.2

Total

71,968100.0

83,492100.0

143,503

100.0(Renovations)

40,732

56.6

38,39846.0

75,814

52.8(Overseas operations)

2,438

3.4

2,359

2.8

4,260

3.0

Electrical equipment
installations

13,94922.8

12,43021.2

30,80522.3

Air-conditioning
installations

33,62254.9

33,181

56.5

77,298

55.9

Plumbing

13,66322.3

13,09422.3

30,242

21.8

Total

61,235100.0

58,706100.0

138,346

100.0(Renovations)

31,781

51.9

33,321

56.8

77,42156.0(Overseas operations)

5,127

8.4

2,317

4.0

9,381

6.8

Electrical equipment
installations

19,12918.5

14,016

11.4

14,42514.8

Air-conditioning
installations

61,17659.2

80,25665.5

59,37960.8

Plumbing

22,99622.3

28,23923.1

23,921

24.4

Total

103,302

100.0

122,512100.0

97,727100.0(Renovations)

36,22035.1

30,73725.1

25,661

26.3(Overseas operations)

5,374

5.2

2,984

2.4

2,942

3.0

10