Brief Report on the Third Quarter Financial Statements for the Period Ending March 2018
[Japanese Standard] (Consolidated)
February 8, 2018

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

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

Code No.: 1980 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:
February 9, 2018
Date scheduled for dividend payment commencement:
Creating supplements to the financial statement:
None
Holding a briefing session on the financial statement:
None(Amounts are indicated with figures less than 1 million yen discarded)

1. Consolidated business results for the third quarter of the period ending March 2018 (From April 1, 2017 to December 31, 2017)(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
Third quarter of the102,710
18.0
5,151
10.8
5,552
period ending March 2018
Third quarter of the
87,058
(9.8)
4,651
5.6
4,856
period ending March 2017
(Note)
Comprehensive income Third quarter of the period ending March 2018 5,523 Million yen 62.0%
Third quarter of the period ending March 2017 3,408 Million yen 6.7%%

Million yen

%

14.3

3,668

16.7

4.8

3,144

7.5

Profit per share after making
potential share adjustments

Profit per share

Yen SenYen SenThird quarter of the164.58―
period ending March 2018
Third quarter of the
141.03―
period ending March 2017
(Note)
Because we had a stock merger of two common shares to one common share as of October 1, 2017, “Profit per share” is calculated
assuming that the stock merger was executed at the beginning of the previous consolidated accounting year.

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity capital ratio

Million yen

Net assets per share%

Yen SenThird quarter of the125,778
62,42649.5
2,792.40
period ending March 2018
Period ending March 2017
118,454
58,00448.8
2,593.28(Reference) Equity capital
Third quarter of the period ending March 2018 62,247 Million yen
Period ending March 2017 57,817 Million yen(Note)
Because we had a stock merger of two common shares to one common share as of October 1, 2017, “Net assets per share” is calculated
assuming that the stock merger was executed at the beginning of the previous consolidated accounting year.

2. Dividends
End of first quarter
Yen Sen――Annual dividends per share
End of second quarter End of third quarter
Yen Sen
10.00
11.50

Yen Sen――

Period end
Yen Sen
13.00

Through year

Yen Sen
Period ending March 201723.00
Period ending March 2018
Period ending March 2018
23.00―
(Forecast)(Note 1)
Presence of revision from dividend forecast published most recently: None
(Note 2)
Because we had a stock merger of two common shares to one common share as of October 1, 2017, we are describing the period-end
dividend per share in March 2018 (forecast) as the figure after the effect of the stock merger, and are describing the sum of annual
dividends as "-." The period-end dividend per share (forecast) in March 2018 when stock merger is not considered will be 11.50 yen andthe annual dividends will be 23.00 yen.

3. Estimate of consolidated performance for the period ending March 2018 (From April 1, 2017 to March 31, 2018)(percentage indications show increase or decrease from the previous period)

Net sales
Total period

Operating profit

Ordinary profit

Profit attributable toowners of parent

Mil. yen%Mil. yen%Mil. yen%Mil. yen%

141,000

12.6

7,200

6.7

7,200

3.8

4,800

3.5

Profit per share
Yen

Sen
215.28(Reference) Estimated net sales of construction contract orders (Total period) 146,000 Million yen(Note 1)
Presence of revision from dividend forecast published most recently: None
(Note 2)
Because we had a stock merger of two common shares to one common share as of October 1, 2017, we are describing profit per share in
estimate of consolidated performance for the period ending March 2018 in those figures where we consider the effect of the stock merger.

* 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)
Third quarter of period ending March 2018 22,981,901 shares Number of treasury shares at the end of period
Third quarter of period ending March 2018
690,151 shares Average numbers of shares in the period (Quarter total)
Third quarter of period ending March 2018 22,293,449 shares(Note)

Period ending March 2017

22,981,901 shares

Period ending March 2017

686,636 shares

Third quarter of period ending March 201722,296,972 shares

Because we had a stock merger of two common shares to one common share as of October 1, 2017, “Number of issued shares at the endof period,” “Number of treasury shares at the end of period” and “Average numbers of shares in the period” are calculated assuming thatthe stock merger was executed at the beginning of the previous consolidated accounting year.

* Brief report on quarterly financial statements is beyond the object of quarterly review.
* 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
Estimate of Consolidated Performance” on page 2.

(Reference) Estimate of individual performance
Estimate of individual performance for the period ending March 2018 (From April 1, 2017 to March 31, 2018)(percentage indications show increase or decrease from the previous period)

Net sales
Mil. yen%

Operating profit

Ordinary profit

Mil. yenMil. yen%

Profit%Mil. yen

Profit per share%

Yen Sen

140,000
13.0
7,200
6.8
7,200
3.9
4,800
3.7
215.28
Total period(Reference) Estimated net sales of construction contract orders (Total period) 145,000 Million yen(Note 1)
Presence of revision from dividend forecast published most recently: None
(Note 2)
Because we had a stock merger of two common shares to one common share as of October 1, 2017, we are describing profit per share in
estimate of individual performance for the period ending March 2018 in those figures where we consider the effect of the stock merger.

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2018

 Contents of Information
1. Qualitative Information on Current Quarter Business Settlement ...........................................................................2(1) Explanation on Operating Results......................................................................................................................2(2) Explanation on Financial Conditions .................................................................................................................2(3) Explanation on Future Estimate Information such as Estimate of Consolidated Performance ..........................2
2. Consolidated Financial Statements and Major Notes ..............................................................................................3(1) Consolidated Balance Sheets .............................................................................................................................3(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ........................5(Consolidated Statements of Income)(Third Quarter Consolidated Cumulative Period)............................................................................................5(Consolidated Statements of Comprehensive Income)(Third Quarter Consolidated Cumulative Period)............................................................................................6(3) Annotation Items Concerning Quarterly Consolidated Financial Statements ....................................................7(Notes to Going Concern Assumption) ............................................................................................................7(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ............................................7
3. Supplementary Information .....................................................................................................................................7
Divisional net sales of construction contract orders received, completed construction contracts, anduncompleted construction contracts (consolidated) ................................................................................................71

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2018

1. Qualitative Information on Current Quarter Business Settlement(1) Explanation on Operating Results
Net sales of construction contract orders received in the current third quarter consolidated cumulative period
decreased by 1,735 million yen or 1.5% from the same quarter consolidated cumulative period of theprevious year, resulting in 111,688 million yen.
Net sales of completed construction contracts increased by 15,652 million yen or 18.0% from the samequarter consolidated cumulative period of the previous year, resulting in 102,710 million yen.
Gross profit on completed construction contracts increased by 700 million yen or 5.5% from the samequarter consolidated cumulative period of the previous year, resulting in 13,335 million yen, due to theincrease in the net sales of completed construction contracts.
Operating profit increased by 500 million yen or 10.8% from the same quarter consolidated cumulative
period of the previous year, resulting in 5,151 million yen, due to the increase in the gross profit oncompleted construction contracts.
Ordinary profit increased by 695 million yen or 14.3% from the same quarter consolidated cumulative
period of the previous year, resulting in 5,552 million yen. This was because foreign exchange losses of 56
million yen that occurred in the same quarter consolidated cumulative period of the previous year turned toforeign exchange gains of 138 million yen in the current third quarter consolidated cumulative period.
Profit attributable to owners of parent increased by 524 million yen or 16.7% from the same quarter
consolidated cumulative period of the previous year, resulting in 3,668 million yen, after posting the gain on
sales of investment securities of 8 million yen as an extraordinary gain, and deducting the income taxescurrent, income taxes-deferred, and the loss attributable to non-controlling interests.
(2) Explanation on Financial Conditions(Assets)
Current assets at the end of the current third quarter consolidated accounting period increased by 4,831
million yen or 5.5% from the end of the previous consolidated accounting year, resulting in 92,348 million
yen. The main factors for this are the increase of 1,724 million yen or 3.5% in notes receivable, accounts
receivable from completed construction contract and the increase of 1,723 million yen or 92.8% in othercurrent assets, etc. Non-current assets increased by 2,491 million yen or 8.1% from the end of the previous
consolidated accounting year, resulting in 33,429 million yen. The main factors for this are the increase of
2,219 million yen or 13.4% in investment securities, etc.
As a result, total assets increased by 7,323 million yen or 6.2% from the end of the previous consolidated
accounting year, resulting in 125,778 million yen.
(Liabilities)
Current liabilities at the end of the current third quarter consolidated accounting period increased by 2,531
million yen or 4.7% from the end of the previous consolidated accounting year, resulting in 56,237 million
yen. The main factors for this are the increase of 6,001 million yen or 36.6% in electronically recorded
obligations - operating, etc., surpassed the decrease of 1,840 million yen or 60.8% in advances received on
uncompleted construction contracts, etc. Non-current liabilities increased by 369 million yen or 5.5% fromthe end of the previous consolidated accounting year, resulting in 7,114 million yen. The main factors forthis are the increase of 811 million yen or 26.6% in deferred tax liabilities, etc.
As a result, total liabilities increased by 2,901 million yen or 4.8% from the end of the previous consolidated
accounting year, resulting in 63,351 million yen.
(Net Assets)
Total net assets at the end of the current third quarter consolidated accounting period increased by 4,421
million yen or 7.6% from the end of the previous consolidated accounting year, resulting in 62,426 million
yen. The main factors for this are the increase of 2,576 million yen or 6.0% in retained earnings, etc.
As a result, the equity capital ratio resulted in 49.5% (48.8% at the end of the previous consolidated
accounting year).
(3) Explanation on Future Estimate Information such as Estimate of Consolidated Performance
There is no change in the prospect of operating results for a full accounting year published on May 11, 2017.

2

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2018

2. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Millions of yen)Previous Consolidated
Accounting Year(As of March 31, 2017)
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts
Electronically recorded monetary claims - operating
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other
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
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

Current Third Quarter
Consolidated Accounting
Period(As of December 31, 2017)

26,576

26,57549,19850,923

8,216
478
0
1,194
1,857
ሺ6)
87,516

9,060
1,509
0
704
3,580
ሺ6)
92,348

4,694
682

4,594
594

16,574
0
7,560
1,615
ሺ188)
25,56230,938118,454

18,793
0
8,011
1,627
ሺ191)
28,24033,429125,778

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2018

(Millions of yen)Previous Consolidated
Accounting Year(As of March 31, 2017)
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
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
Capital stock
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

4

Current Third Quarter
Consolidated Accounting
Period(As of December 31, 2017)

20,051

19,427

16,3843,880
1,143

22,385
4,036
445

3,028

1,188

—
—
76
254
8,887
53,705

1,472
9
75
95
7,101
56,237

2,054
3,046
1,339
7
296
0
6,744
60,450

1,622
3,857
1,332
5
296
0
7,114
63,351

4,479
4,809
43,290ሺ678)
51,901

4,479
4,809
45,866
ሺ688)
54,467

6,344
13
ሺ441)
5,916
186
58,004
118,454

7,897
21
ሺ138)
7,779
178
62,426
125,778

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2018

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Third 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
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 non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of golf club membership
Loss on disaster
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

5

Previous Third Quarter
Consolidated Cumulative
Period(From April 1, 2016
to December 31, 2016)
87,05874,423
12,634
7,983
4,651

Current Third Quarter
Consolidated Cumulative
Period(From April 1, 2017
to December 31, 2017)
102,710
89,375
13,335
8,184
5,151

5
244
109
—
29
389

5
257
93
138
28
523

101
4
56
22
184
4,856

108
5
—
8
122
5,552

49
—
49

4
8
13

4
—
76
80
4,825
1,009
680
1,689
3,135
ሺ8)
3,144

0
4
—
4
5,561
1,425
482
1,907
3,653
ሺ15)
3,668

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2018

(Consolidated Statements of Comprehensive Income)(Third 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

6

Previous Third Quarter
Consolidated Cumulative
Period(From April 1, 2016
to December 31, 2016)
3,135

Current Third Quarter
Consolidated Cumulative
Period(From April 1, 2017
to December 31, 2017)
3,653

61
ሺ50)
261
272
3,408

1,552
15
302
1,870
5,523

3,443

5,531

ሺ34)

ሺ8)

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2018

(3) Annotation Items Concerning Quarterly Consolidated Financial Statements(Notes to Going Concern Assumption)
None(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity)
None

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 Third Quarter
Consolidated Cumulative
Period(From April 1, 2016
to December 31, 2016)
Component
Amountratio %
Electrical equipment
installations
Air-conditioning
installations

Current Third Quarter
Consolidated Cumulative
Period(From April 1, 2017
to December 31, 2017)
Component
Amountratio %

Increase(decrease)

AmountRatio %

17,758

15.7

17,535

15.7

(223)

(1.3)

71,011

62.6

68,97361.8(2,037)(2.9)

Plumbing

24,65321.7

25,178

22.5

525

2.1

Total

113,423

100.0

111,688

100.0(1,735)(1.5)(Renovations)

57,74350.9

58,594

52.5

850

1.5

(Overseas operations)

3,599

3.2

3,556

3.2

(42)

(1.2)

18,832

21.6

18,586

18.1

(245)

(1.3)

49,09856.4

61,53959.912,441

25.3

Plumbing

19,12722.0

22,584

22.0

3,456

18.1

Total

87,058100.0

102,710100.0

15,65218.0(Renovations)

48,87056.1

53,614

52.2

4,743

9.7

(Overseas operations)

3,539

4.1

3,991

3.9

451

12.8

13,352

10.8

16,381

13.1

3,028

22.7

81,292

65.5

78,41962.5(2,873)(3.5)

Plumbing

29,44723.7

30,657

24.4

1,210

4.1

Total

124,092

100.0

125,457

100.0

1,365

1.1

(Renovations)

34,53427.8

33,599

26.8

(934)

(2.7)

(Overseas operations)

3,001

2.4

2,193

1.7

(808)

(26.9)

Electrical equipment
installations
Air-conditioning
installations

Electrical equipment
installations
Air-conditioning
installations

7