Brief Report on the Second Quarter Financial Statements for the Period Ending March 2018
[Japanese Standard] (Consolidated)
November 8, 2017

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 9, 2017
Date scheduled for dividend payment commencement:
December 1, 2017
Creating supplements to the financial statement:
None
Holding a briefing session 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 2018 (From April 1, 2017 to September 30, 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
Second quarter of the68,141
16.1
3,201
3.8
3,469
period ending March 2018
Second quarter of the
58,706
(4.1)
3,085
29.5
2,912
period ending March 2017
(Note) Comprehensive income Second quarter of the period ending March 2018 2,879 Million yen 173.6 %Second quarter of the period ending March 2017 1,052 Million yen 7.4 %Second quarter of theperiod ending March 2018
Second quarter of theperiod ending March 2017

Profit per share

Profit per share after
making potential shareadjustments

Yen

Yen

Sen

%

Million yen

%

19.1

2,297

25.3

14.9

1,833

16.6

Sen

103.05

―

82.21

―

(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 assumingthat 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 Sen

Second quarter of the122,534
60,29649.1
2,696.69
period ending March 2018
118,454
58,00448.8
2,593.28
Period ending March 2017
(Reference) Equity capital Second quarter of the period ending March 2018 60,115 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
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 “-.” Theperiod-end dividend per share (forecast) in March 2018 when stock merger is not considered will be 11.50 yen and the annual dividend willbe 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

Operating profit

Ordinary profit

Profit attributableto owners of parent

Profit per share

Mil. yen%Mil. yen%Mil. yen%Mil. yen%
Yen Sen141,000
12.6
7,200
6.7
7,200
3.8
4,800
3.5
215.28146,000 Million yen(Reference) Estimated net sales of construction contract orders (Total period)(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.

Total period* 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)
Second quarter of period ending March 2018 22,981,901 shares Number of treasury shares at the end of period
Second quarter of period ending March 2018
689,559 shares Average numbers of shares in the period (Quarter total)
Second quarter of period ending March 2018 22,294,169 shares

Period ending March 2017

22,981,901 shares

Period ending March 2017

686,636 shares

Second quarter of period ending March 201722,297,274 shares(Note) Because we had a stock merger of two common shares to one common share as of October 1, 2017, “Number of issued shares at theend of period,” “Number of treasury shares at the end of period” and “Average numbers of shares in the period” are calculated
assuming that the 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 3.

(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

Operating profit

Ordinary profit

ProfitProfit per share

Mil. yen%Mil. yen%Mil. yen%Mil. yen%
Yen Sen
140,000
13.0
7,200
6.8
7,200
3.9
4,800
3.7
215.28(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 inforesight of individual results in March 2018 in those figures where we consider the effect of the stock merger.

Total periodDAI-DAN Co., Ltd. (1980), Brief Report on the Second 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 ....................... 3
2. Consolidated Financial Statements and Major Notes .................................................................................... 4(1) Consolidated Balance Sheets ................................................................................................................ 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income...................... 6(Consolidated Statements of Income)(Second Quarter Consolidated Cumulative Period) ............................................................................... 6(Consolidated Statements of Comprehensive Income)(Second Quarter Consolidated Cumulative Period) ............................................................................... 7(3) Consolidated 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
3. 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 2018

1. Qualitative Information on Current Quarter Business Settlement(1) Explanation on Operating Results
Net sales of construction contract orders received in the current second quarter consolidated cumulative
period decreased by 10,064 million yen or 12.1% from the same quarter consolidated cumulative period of
the previous year, resulting in 73,427 million yen.
Net sales of completed construction contracts increased by 9,434 million yen or 16.1% from the samequarter consolidated cumulative period of the previous year, resulting in 68,141 million yen.
Gross profit on completed construction contracts increased by 216 million yen or 2.6% from the samequarter consolidated cumulative period of the previous year, resulting in 8,650 million yen, due to theincrease in the net sales of completed construction contracts.
Operating profit increased by 116 million yen or 3.8% from the same quarter consolidated cumulative periodof the previous year, resulting in 3,201 million yen, due to the increase in the gross profit on completed
construction contracts.
Ordinary profit increased by 556 million yen or 19.1% from the same quarter consolidated cumulative
period of the previous year, resulting in 3,469 million yen. This was because foreign exchange losses of 359
million yen that occurred in the same quarter consolidated cumulative period of the previous year turned toforeign exchange gains of 80 million yen in the current second quarter consolidated cumulative period.
Profit attributable to owners of parent increased by 464 million yen or 25.3% from the same quarter
consolidated cumulative period of the previous year, resulting in 2,297 million yen, after posting the gain on
sales of investment securities of 8 million yen as an extraordinary gain, and deducting the corporate tax,
resident tax and business tax, 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 second quarter consolidated accounting period increased by 3,359
million yen or 3.8% from the end of the previous consolidated accounting year, resulting in 90,875 million
yen. The main factors for this are the increase of 1,417 million yen or 5.3% in cash and deposits, and theincrease of 1,595 million yen or 85.9% in other current assets. Non-current assets increased by 720 million
yen or 2.3% from the end of the previous consolidated accounting year, resulting in 31,658 million yen. The
main factors for this are the increase of 533 million yen or 3.2% in investment securities, and the increase of
301 million yen or 4.0% in net defined benefit asset.
As a result, total assets increased by 4,079 million yen or 3.4% from the end of the previous consolidated
accounting year, resulting in 122,534 million yen.
(Liabilities)
Current liabilities at the end of the current second quarter consolidated accounting period increased by 1,661
million yen or 3.1% from the end of the previous consolidated accounting year, resulting in 55,367 million
yen. The main factors for this are the increase of 2,189 million yen or 13.4% in electronically recorded
obligations - operating, etc. Non-current liabilities increased by 125 million yen or 1.9% from the end of theprevious consolidated accounting year, resulting in 6,870 million yen. The main factors for this are theincrease of 254 million yen or 8.4% in deferred tax liabilities, etc.
As a result, total liabilities increased by 1,787 million yen or 3.0% from the end of the previous consolidated
accounting year, resulting in 62,237 million yen.
(Net Assets)
Total net assets at the end of the current second quarter consolidated accounting period increased by 2,291
million yen or 4.0% from the end of the previous consolidated accounting year, resulting in 60,296 million
yen. The main factor for this is the increase of 1,717 million yen or 4.0% in retained earnings, etc.
As a result, the equity capital ratio resulted in 49.1% (48.8% at the end of the previous consolidated
accounting year).

2

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

Situations of cash flow
Cash and cash equivalents (hereinafter referred to as “fund”) during the current second quarter consolidated
period increased by 1,417 million yen from the end of the previous consolidated accounting year, resulting
in 27,967 million yen. The situation of cash flows and their factors during the current second quarter
consolidated cumulative period are as follows.
(Cash flows from operating activities)
As a result of operating activities, the increased fund resulted in 2,114 million yen (increase of the fund by
6,265 million yen in the same-quarter consolidated cumulative period of the previous year). The main reason
for this is that the increase factors of the fund, such as the posting of the profit before income taxes and theincrease in notes and accounts payable – trade, surpassed the decrease factors of the fund, such as theincrease in other current assets and the decrease in advances received on uncompleted construction
contracts.
(Cash flows from investing activities)
As a result of the investing activities, the decreased fund resulted in 128 million yen (decrease of the fund by
1,243 million yen in the same quarter consolidated cumulative period of the previous year). Main factors forthis 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 582 million yen (decrease of the fund by
562 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 cash
dividends paid surpassed the proceeds from short-term loans payable and long-term loans payable.
(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.

3

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

2. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(in million yen)
Current Second Quarter
Consolidated Accounting
Period(As of September 30, 2017)

Previous Consolidated
Accounting Year(As of March 31, 2017)
AssetsCurrent assets
Cash and deposits

26,57627,99449,19849,477

8,216

7,918

478

1,024

0

0

Deferred tax assets

1,194

1,014

Other

1,857

3,452

(6)

(6)

87,51690,875

4,694

4,646

682

616

16,574

17,10700

Net defined benefit asset

7,560

7,861

Other

1,615

1,615

Allowance for doubtful accounts

(188)

(190)

Total investments and other assets

25,562

26,39430,93831,658118,454

122,534

Notes receivable, accounts receivable fromcompleted 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 2018

(in million 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

5

Current Second Quarter
Consolidated Accounting
Period(As of September 30, 2017)

20,051

21,315

16,3843,880
1,143

18,573
4,009
1,148

3,028

1,514

－
－
76
254
8,887
53,705

2,131
35
71
96
6,471
55,367

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

1,931
3,300
1,335
6
296
0
6,870
62,2374,479
4,809
43,290(678)
51,901

4,479
4,809
45,008(686)
53,610

6,344
13
(441)
5,916
186
58,004
118,454

6,727
16
(239)
6,504
180
60,296
122,534

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

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Second Quarter Consolidated Cumulative Period)
Previous Second Quarter
Consolidated Cumulative
Period(From April 1, 2016
to September 30, 2016)
58,70650,273
8,433
5,348
3,085

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

2
155
104

(in million yen)
Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2017
to September 30, 2017)
68,14159,491
8,650
5,448
3,201

18

3
160
93
80
18

280

356

69
3
359
21

77
4
－
7

453

89

2,912

3,469

0
－

1
8

0

10

2
－
76

0
3
－

Total extraordinary losses

79

4

Profit before income taxes

2,833

3,474

Income taxes - current
Income taxes - deferred

671
335

1,011
175

Total income taxes

1,006

1,186

Profit

1,827

2,288

－

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

Loss attributable to non-controlling interests
Profit attributable to owners of parent

6

(5)

(8)

1,833

2,297

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

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

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

7

Previous Second Quarter
Consolidated Cumulative
Period(From April 1, 2016
to September 30, 2016)
1,827(in million yen)
Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2017
to September 30, 2017)
2,288

(900)
(48)
174
(774)
1,052

383
5
201
590
2,879

1,082

2,885

(30)

(5)

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

(3) Consolidated Statement of Cash Flows(in million yen)Previous Second Quarter
Current Second Quarter
Consolidated Cumulative Period Consolidated Cumulative Period(From April 1, 2016
(From April 1, 2017
to September 30, 2016)
to September 30, 2017)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Increase (decrease) in provision for foreign
investment loss
Loss (gain) on sales of investment securities
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss on valuation of golf club memberships
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
Net cash provided by (used in) operating activities

8

2,833
172
(1)
(18)
(157)
69

3,474
231
1
8
(163)
77

2

(1)

－
(0)
2
－

(8)
(1)
0
3

18,407

19

(587)

(545)

551
4
(56)
(12,565)(1,605)
(1)
(23)
3,453

460

(1,513)(1,398)
(5)
7,712
157
(68)
(1,536)
6,265

(373)
－
3,033
163
(76)
(1,005)2,114

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

(in million yen)Previous Second Quarter
Current Second Quarter
Consolidated Cumulative Period Consolidated Cumulative Period(From April 1, 2016
(From April 1, 2017
to September 30, 2016)
to September 30, 2017)
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
Proceeds from sales of other non-current assets
Net cash provided by (used in) investing activities
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
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9

(874)
0
(2)

(123)
1
(2)

0

30

－
1
(398)
30
(1,243)

(0)
0
(60)
24
(128)

18,480(19,180)
1,700(1,070)(1)(490)

19,080(18,980)
1,000(1,094)
(8)
(579)

(562)

(582)

(100)

14

4,359

1,417

23,53627,896

26,54927,967

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

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

3. Supplementary Information
Divisional net sales of construction contract orders received, completed construction contracts, anduncompleted construction contracts (consolidated)(in million yen)
Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2017
to September 30, 2017)

Previous Second Quarter
Consolidated Cumulative
Period(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 %

AmountComponent
ratio %

Increase(decrease)

AmountRatio %

Electrical equipment
installations

12,021

14.4

12,763

17.4

741

6.2

Air-conditioning
installations

54,05864.8

46,641

63.5(7,417)(13.7)

Plumbing

17,411

20.8

14,022

19.1(3,389)(19.5)

Total

83,492100.0

73,427100.0(10,064)(12.1)(Renovations)

38,39846.0

40,862

55.7

2,464

6.4

(Overseas operations)

2,359

2.8

2,550

3.5

190

8.1

Electrical equipment
installations

12,43021.2

12,272

18.0

(157)

(1.3)

Air-conditioning
installations

33,181

56.5

40,850

60.0

7,668

23.1

Plumbing

13,09422.3

15,018

22.0

1,923

14.7

Total

58,706100.0

68,141

100.0

9,434

16.1

(Renovations)

33,321

56.8

34,908

51.2

1,587

4.8

(Overseas operations)

2,317

4.0

2,489

3.7

171

7.4

Electrical equipment
installations

14,016

11.4

17,923

14.7

3,906

27.9

Air-conditioning
installations

80,25665.5

76,77563.1(3,480)(4.3)

Plumbing

28,23923.1

27,06722.2(1,171)

(4.1)

Total

122,512100.0

121,767

100.0

(745)

(0.6)

(Renovations)30,73725.1

34,572

28.4

3,834

12.5

(Overseas operations)

2,984

2.4

2,689

2.2

(294)

(9.9)

10