Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014
[Japanese Standard] (Consolidated)
November 7, 2013
Listed Shares Exchanges:
Tokyo Stock Exchange 1st section

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

Representative of Company: Shohei KITANO, Representative Director, President and Chief Operating Officer (C.O.O.)
Inquiries to be addressed to: Hirokazu KAWAKUBO, Director, Senior Executive Corporate Officer, Head of General Administration Division
Scheduled date to file a quarterly report: November 8, 2013
Date scheduled for dividend payment commencement: December 2, 2013
Yes or no of preparation of quarterly settlement supplementary explanation data: No
Yes or no of holding of quarterly settlement explanation meeting: Yes

Tel.: 06-6447-8003(Amounts are indicated with figures less than 1 million yen discarded)
1. Consolidated business results for the Second quarter of the period ending March 2014 (From April 1, 2013 to September 30, 2013)(1) Consolidated management performance (Cumulative total)(Percentage figures represent the changes from the same quarter period of the previous accounting year.)

Sales amountOperating profit

Million yen
55,701
56,190

Second quarter of the period ending March 2014
Second quarter of the period ending March 2013

%
-0.9
7.2

Million yen
1,008
316

Ordinary profit
%
219.1
-41.4

Million yen
1,204
381

Quarterly net income
%
215.8
-16.9

Million yen
310
-111

%
―
―

(Reference) Comprehensive income: Second quarter of the period ending March 2014 1,888 million yen (– %),Second quarter of the period ending March 2013 -6 million yen (– %)Quarterly net income pershare (basic)
Yen
Second quarter of the period ending March 2014
Second quarter of the period ending March 2013

Quarterly net income pershare (diluted)

Sen
6.96
-2.49

Yen

Sen
―
―

(2) Consolidated financial condition
Total assets

Net assets

Million yen
Second quarter of the period ending March 2014
102,450
Period ended March 2013
106,155(Reference) Equity capital: Second quarter of the period ending March 2014 46,208 Million yen,
Period ending March 2013 44,856 Million yen

Shareholders capital rate

Million yen
46,382
44,988

Net assets per share

%
45.1
42.3

Yen Sen
1,035.87
1,005.38

2. Dividend status
Annual Dividends(Base date)

End of first quarter
Yen

End of second quarter
Sen

Yen

End of third quarter

Sen

Period ending March 2013

―

8.00

Period ending March 2014

―

8.00

Yen

Period ending March 2014 (Forecast)

Period end

Sen

Yen

Through year
Sen

Yen

Sen

―

11.00

19.00

―

8.00

16.00

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

3. Estimate of consolidated performance for the period ending March 2014 (From April 1, 2013 to March 31, 2014)(Percentage figures represent increase or decrease from the previous accounting year.)

Sales amount
Total period

Million yen
126,000

Operating profit%
3.3

Million yen
3,500(Note) Presence or absence of revision from earnings forecast published most recently: Yes(Reference) Estimated amount of work order received [full year]: 126,000 Million yen

Ordinary profit%
27.3

Million yen
3,500

Current net profit%
6.8

Million yen
1,600

Current net earnings per share%
0.0

Yen Sen35.86

* Annotations(1) Key subsidiary changes 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) Accounting policy change, accounting estimate change, revision redisplay
 Accounting policy change due to revision of accounting standards etc.: None
 Accounting policy change other than : None
Accounting estimate change: None
Revision redisplay: None
(4) Number of issued shares (common stock) Number of issued shares at the end of period (including treasury stock) Number of treasury stock at the end of period
 Average numbers of shares in the period (Quarter total)Second quarter of period endingSecond quarter of period endingSecond quarter of period ending

March 2014
March 2014
March 2014

45,963,803 shares

Period ending March 2013

45,963,803 shares

1,354,935 shares

Period ending March 2013

1,347,546 shares

44,611,867 shares

Second quarter of period ending

44,640,224 shares

March 2013

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

(Reference) Estimate of individual performance
Estimate of individual performance for the period ending March 2014 (From April 1, 2013 to March 31, 2014)(Percentage figures represent increase or decrease from the previous accounting year.)

Sales amount
Total period

Million yen
125,000

Operating profit%
4.1

Million yen
3,500(Note) Presence or absence of revision from business forecast published most recently: Yes(Reference) Estimated amount of work order received [full year]: 125,000 Million yen

Ordinary profit%
33.7

Million yen
3,500

Current net profit%
11.6

Million yen
1,600

Current net earnings per share%
3.8

Yen Sen35 .86

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014

○ Contents of Information
1. Qualitative Information on Current Quarter Consolidated Business Settlement ............................. 2(1) Explanation about Operating Results ............................................................................................................... 2(2) Explanation about Financial Conditions .......................................................................................................... 2(3) Explanation about Future Estimate Information such as Consolidated Earnings Forecast .............................. 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, Revision Redisplay.............................. 3

3. Quarterly Consolidated Financial Statements .................................................................................. 4(1) Quarterly Consolidated Balance Sheet............................................................................................................. 4(2) Quarterly Consolidated Profit and Loss Statement and Consolidated Comprehensive Income Statement ..... 6
Quarterly Consolidated Profit and Loss Statement
Second Quarter Consolidated Cumulative Period ........................................................................................... 6
Quarterly Consolidated Comprehensive Income Statement
Second Quarter Consolidated Cumulative Period ............................................................................................. 7(3) Quarterly 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 amount of work orders received, completed works, and works carried over (consolidated) ............. 10-1-

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014

1. Qualitative Information on Current Quarter Consolidated Business Settlement(1) Explanation about Operating Results
A mild improvement in corporate revenues was seen in Japan’s economy in the current second quarter
consolidated cumulative period because of production activity recovery in manufacturing industries etc. against
the background of overseas economy recovery undertone and cheap yen.
In the construction industry, domestic recovery was short of reaching a full-fledged scale because of factors
including the still remaining sense of corporate excess equipment, and investment mind continuing taking
cautious attitude despite expectation for private sector equipment investment activation because of the
improvement in corporate revenues.
Under these circumstances, efforts were made to secure orders and profits under the mid-term business plan
“DaiDan Challenging The New Age.” As a result, the following business results were attained in the current
second quarter consolidated cumulative period. Amount of work orders received was 62,305 million yen or 1,094
million yen less than the same quarter consolidated cumulative period a year ago due to severe order taking
environments.
Amount of completed works was 55,701 million yen or 488 million yen less than the same quarter consolidated
cumulative period a year ago due to the decrease in amount of work orders received.
Completed work gross profit was 5,937 million yen with an increase of 702 million yen from the same quarter
consolidated cumulative period a year ago because of the improvement in completed work gross profit rate despite
the decrease in amount of completed works.
Operating profit was 1,008 million yen with an increase of 692 million yen from the same quarter consolidated
cumulative period a year ago because of the increase in completed work gross profit.
Ordinary profit was 1,204 million yen with an increase of 823 million yen from the same quarter consolidated
cumulative period a year ago because the loss on foreign exchange of 60 million yen that occurred in the samequarter consolidated cumulative period a year ago turned into a gain on foreign exchange of 68 million yen in thecurrent second quarter consolidated cumulative period and because of the increase in operating profit.
Despite the increase in ordinary profit, the quarterly net profit was 310 million yen (vs. 111 million yen
quarterly net loss in the same quarter consolidated cumulative period a year ago) because of the posting ofevaluation loss on investments in securities of 57 million yen and reserve for losses on litigation of 345 million
yen and the deduction for corporate tax, residence tax and business tax, adjustment amounts such as for corporate
taxes and minority interest in income.
(2) Explanation about Financial Conditions(Assets)
Current assets at the end of the current second quarter consolidated accounting period were 76,260 million yen
with a decrease of 6,320 million yen from the end of the preceding consolidated accounting year mainly becauseof the decrease (6,256 million yen) in note receivables and completed work accounts receivables. Fixed assets
were 26,190 million yen with an increase of 2,615 million yen from the end of the preceding consolidated
accounting year mainly because of the increase (2,311 million yen) in investment securities.
As a result, the gross assets were 102,450 million yen with a decrease of 3,704 million yen from the end of thepreceding consolidated accounting year.
(Liabilities)
Current liabilities at the end of the current second quarter consolidated accounting period were 49,811 million
yen with a decrease of 6,594 million yen from the end of the preceding consolidated accounting year mainly
because of the decrease (6,683 million yen) in notes payable and work account payable. Fixed liabilities were
6,257 million yen with an increase of 1,495 million yen from the end of the preceding consolidated accounting
year mainly because of the increase (254 million yen) in long-term loans payable, the increase (953 million yen)
in deferred tax liabilities and the posting (336 million yen) of provision for loss on litigation.
As a result, total liabilities were 56,068 million yen with a decrease of 5,098 million yen from the end of thepreceding consolidated accounting year.
(Net Assets)
Total net assets at the end of the current second quarter consolidated accounting period were 46,382 million yen
with an increase of 1,393 million yen from the end of the preceding consolidated accounting year mainly because
the posting (310 million yen) of the quarterly net profit and the increase (1,510 million yen) in evaluationdifference of other securities exceeded surplus dividend (490 million yen) etc.
As a result, the net worth ratio was 45.1% (vs. 42.3% at the end of the preceding consolidated accounting year).

-2-

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014

State of Cash Flows
Cash and cash equivalents (“funds”) in the current second quarter consolidated cumulative period were 21,937
million yen with a decrease of 482 million yen from the end of the preceding consolidated accounting year.
The following are the state of respective cash flows and their main causes in the current second quarter
consolidated cumulative period.
(Cash flows from operating activities)
Fund increase due to operating activities was 372 million yen (vs. fund increase of 1,856 million yen in thesame quarter consolidated cumulative period a year ago) mainly because fund increasing factors like the postingof quarterly net income before income taxes and other adjustment, decrease in sales credits, increase in incomplete
work accounts received and coordination of non-fund item depreciation expenses exceeded fund decreasing
factors like the increase in incomplete work expenditures, decrease in purchase obligations and payment ofcorporate tax etc.
(Cash Flow on Investment Activities)
Funds paid because of investment activities were 78 million yen (vs. fund payment of 215 million yen in thesame quarter consolidated cumulative period a year ago) mainly because expenditures by acquiring of tangible
fixed assets and expenditures by acquiring of other fixed assets (software etc.) exceeded revenue by sales orredemption of securities.
(Cash Flow on Financial Activities)
Funds decrease due to financial activities was 855 million yen (vs. fund decrease of 1,251 million yen in thesame quarter consolidated cumulative period a year ago) mainly because expenditures by repayment of short- andlong-term loans and paid amount of dividends exceeded revenues by short- and long-term loans.
(3) Explanation about Future Estimate Information such as Consolidated Earnings Forecast
Amount of work orders received, amount of completed works, operating profit and ordinary profit remainunchanged from the whole period business result prospects announced on May 9, 2013. As announced in the“Notice on Revision of Business Result Prospects” of October 29, 2013, the current period net profit has beenrevised down to 1,600 million yen with a decrease of 200 million yen from the previously announced 1,800
million yen by estimating provision for loss on litigation of 345 million yen for the lawsuit loss by the Company’s
Malaysian consolidated subsidiary MERINO O.D.D SDN. BHD.

2. Items Concerning Summary Information (Annotations)(1) Changes in major subsidiaries in the current quarter consolidated cumulative period
No applicable matter.
(2) Application of particular accounting to the preparation of quarter consolidated financial statements
No applicable matter.
(3) Changes in accounting policies, changes in accounting estimates, revision redisplay
No applicable matter.

-3-

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet
Previous Consolidated
Accounting Year
(March 31, 2013)
AssetsCurrent assets
Cash on hand and in banks
Note receivables and completed work accounts
receivables
Securities
Incomplete work expenditures
Inventories of raw materials and supplies
Deferred tax assets
OthersAllowance for bad debts
Total current assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment securities
Deferred tax assets
Prepaid pension costs
OthersAllowance for bad debts
Total investments and other assets
Total fixed assets
Total assets-4-(in million yen)
Current Second Quarter
Consolidated Accounting Period(September 30, 2013)

22,44756,324

21,96550,067

49
314
0
1,003
2,446
-6

－
906
0
855
2,470
-5

82,581

76,260

3,970
417

3,887
342

11,007
2
6,587
2,222
-632

13,319
2
7,042
2,251
-654

19,18623,574

21,95926,190106,155

102,450DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014

Previous Consolidated
Accounting Year
(March 31, 2013)
Liabilities
Current liabilities
Notes payable, work accounts payable
Short-term loans payable
Income taxes payable
Incomplete work accounts received
Reserves for bonuses
Reserves for directors’ premiums
Reserves for completed work compensation
Reserves for work loss
OthersTotal current liabilities
Fixed liabilities
Long-term loans payable
Deferred tax liabilities
Reserves for retirement benefits
Reserves for environmental measure
Provision for loss on litigation
Reserves for overseas investment loss
Long-term accounts payable
OthersTotal fixed liabilities
Total liabilities
Net Assets
Shareholders’ equity
Capital stock
Capital surplus
Earned surplus
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive profit
Evaluation difference of other securities
Currency translation adjustment accountTotal accumulated other comprehensive profit
Minority interest equity
Total net assets
Total liabilities and net assets-5-(in million yen)
Current Second Quarter
Consolidated Accounting Period(September 30, 2013)

39,979
6,251
788
2,435
－
－
100
391
6,458

33,296
5,635
257
3,393
1,296
39
88
185
5,618

56,40549,811

1,378
1,455
1,328
220
－
2
376
0

1,633
2,408
1,281
220
336
－
376
0

4,761

6,257

61,16756,0684,479
4,809
33,774
-660

4,479
4,809
33,594-664

42,40342,219

2,412
40

3,923
66

2,453
131

3,989
173

44,98846,382

106,155

102,450DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014

(2) Quarterly Consolidated Profit and Loss Statement and Consolidated Comprehensive Income
Statement(Quarterly Consolidated Profit and Loss Statement)(Second Quarter Consolidated Cumulative Period)
Previous Second Quarter
Consolidated Cumulative Period(From April 1, 2012 to
September 30, 2012)
56,19050,955
5,235
4,919
316

(in million yen)
Current Second Quarter
Consolidated Cumulative Period(From April 1, 2013 to
September 30, 2013)
55,701
49,764
5,937
4,929
1,008

7
97
93
－
25
224

8
107
82
68
25
293

80
8
60
9
158
381

75
12
－
9
97
1,204

37
185
2
－

0
57
1
345

226

404

Quarterly net income before income taxes and otheradjustment
Income taxes - current
Income taxes - deferred

155

800

65
173

212
251

Total income taxes

239

463

Quarterly net income or loss (-) before adjustment of
profit and loss of minority interests

-84

336

Minority interests in income

27

26

-111

310

Completed work amountCompleted work costCompleted work gross profit
Selling expenses and general administrative expenses
Operating profit
Non-operating income
Interests received
Dividends received
Insurance claim received
Gain on foreign exchange
OthersTotal non-operating income
Non-operating expenses
Interest payable
Payment guarantee charge
Loss on foreign exchange
OthersTotal non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of fixed assets
Evaluation loss on investments in securities
Golf club membership appraisal loss
Reserve for losses on litigation
Total extraordinary losses

Quarterly net loss (-)-6-

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014

(Quarterly Consolidated Comprehensive Income Statement)(Second Quarter Consolidated Cumulative Period)

Quarterly net income or loss (-) before adjustment of
profit and loss of minority interests
Other comprehensive profit
Evaluation difference of other securities
Currency translation adjustment accountTotal other comprehensive profit
Quarterly comprehensive profit(Particulars)
Quarterly comprehensive profit pertaining toparent company shareholders
Quarterly Comprehensive profit pertaining tominority shareholders

Previous Second Quarter
Consolidated Cumulative Period(From April 1, 2012 to
September 30, 2012)-84(in million yen)
Current Second Quarter
Consolidated Cumulative Period(From April 1, 2013 to
September 30, 2013)
336

76
0
77
-6

1,510
41
1,552
1,888

-34

1,847

27

41

-7-

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014(3) Quarterly Consolidated Statement of Cash Flows

Previous Second Quarter
Consolidated Cumulative Period(From April 1, 2012 to
September 30, 2012)(in million yen)
Current Second Consolidated
Cumulative Period(From April 1, 2013 to
September 30, 2013)

155

800

199
-10

214
20

-41

-46

－

336

-105
80
185

-116
75
57

37
2
10,746

0
1
6,246

-400

-592

180

-67

-372

-455

-8,410-6,683

393

958

-356

320

-12

-2

2,272
105
-78
-442

1,068
116
-75
-736

1,856

372

-49
49
-276
-2
－
2
-49
110
-215

－
49
-107
-7
-1
2
-31
17
-78

Cash flow on sales activities
Quarterly net income before income taxes andother adjustment
Depression expenses
Increased or decreased amount of allowance forbad debts (“-” represents decrease.)
Increased or decreased in reserves for retirement
benefits (“-” represents decrease.)
Increased or decreased in reserve for losses on
litigation (“-” represents decrease.)
Interest and dividends received
Interest paid
Profit or loss on appraisal of investments insecurities (“-” represents profit.)
Loss on retirement of fixed assets
Golf club membership appraisal loss
Increased or decreased amount of sales credit(“-” represents increase.)
Increased or decreased amount of incomplete work
expenditures (“-” represents increase.)
Increased or decreased in other current assets(“-” represents increase.)
Increased or decreased in other fixed assets(“-” represents increase.)

Increased or decreased amount of procurement
credits (“-” represents decrease.)
Increased or decreased amount of incomplete work
received amount (“-” represents decrease.)
Increased or decreased in other current liabilities(“-” represents decrease.)
Increased or decreased in other fixed liabilities(“-” represents decrease.)
Sub-total
Received amount of interests and dividends
Paid interest amountPaid or refund amount of corporate tax etc.
（“-” represents paid）
Cash flow on sales activities
Cash flow on investment activities
Expenditures by acquiring of securities
Revenue by sales or redemption of securities
Expenditures by acquiring of tangible fixed assets
Expenditures by acquiring of investment securities
Payments of loans receivable
Revenue from loans receivable
Expenditures by acquiring of other fixed assets
Revenue by sales of other fixed assets
Cash flow on investment activities-8-

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014

Previous Second Quarter
Consolidated Cumulative Period(From April 1, 2012 to
September 30, 2012)(in million yen)
Current Second Quarter
Consolidated Cumulative Period(From April 1, 2013 to
September 30, 2013)

14,880-15,480800-1,092-2-357

16,520-17,120
1,300-1,061-3-490

Cash flow on financial activities
Translation difference relating to cash and cash
equivalents
Increased or decreased amount of cash and cash
equivalents (“-” represents decrease.)-1,251
-57

-855
78

332

-482

Balance of cash and cash equivalents at the beginningof period

22,63522,420

Balance of cash and cash equivalents at the end of thequarterly period

22,96821,937

Cash flow on financial activities
Revenue by short-term loans
Expenditures by repayment of short-term loans
Revenue by long-term loans
Expenditures by repayment of long-term loans
Expenditures by acquiring of treasury stock
Paid amount of dividends-9-DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2014

(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 amount of work orders received, completed works, and works carried over (consolidated)(in million yen)Previous Second Quarter
Consolidated Cumulative
periodCurrent Second Quarter
Consolidated Cumulative
PeriodPrevious consolidated
Accounting year

(From April 1, 2012
to September 30, 2012)(From April 1, 2013
to September 30, 2013

(From April 1, 2012 toMarch 31, 2013)24,171

Component
ratio %
20.1

62.5

71,23059.4

11,80619.0

24,578

20.5

100.0

62,305100.0

119,980

100.0

29,702

46.9

36,541

58.7

58,517

48.8

3,430

5.4

4,242

6.8

5,599

4.7

12,361

22.0

12,06821.7

24,64920.2

32,35457.6

30,975

55.6

71,19458.4

11,47420.4

12,65722.7

26,07521.4

56,190100.055,701

100.0

121,919100.0

30,061

53.5

26,31847.3

63,350

52.0

4,408

7.9

2,277

4.1

6,552

5.4

10,621

12.0

10,56612.2

11,08913.953,64760.3

55,75664.6

47,77759.9

24,64627.7

20,04923.2

20,90026.2

88,915100.0

86,371

100.0

79,767100.0

24,83627.9

30,58535.4

20,362

25.5

3,679

4.1

5,669

6.6

3,704

4.6

11,545Component
ratio %
18.5

60.4

38,953

13,725

21.6

63,39911,414Component
ratio %
18.0

38,259Amount of work orders
received

AmountElectrical work
Air-conditioning work
Plumbing/sanitation
Total（Renewal work）（Overseas work）
Amount of completed
worksElectrical work
Air-conditioning work
Plumbing/sanitation
Total（Renewal work）

Amount of works carried
over（Overseas work）
Electrical work
Air-conditioning work
Plumbing/sanitation
Total（Renewal work）（Overseas work）

Amount- 10 -

Amount