Brief Report on the First Quarter Financial Statements for the Period Ending March 2018
[Japanese Standard] (Consolidated)
August 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:
August 9, 2017
Date scheduled for dividend payment commencement:
Creating supplements to the financial statement:
None
Holding a briefing sessions on the financial statement:
None(Amounts are indicated with figures less than 1 million yen discarded)

1. Consolidated business results for the first quarter of the period ending March 2018 (From April 1, 2017 to June 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
First quarter of the period
27,847-1.6
695
ending March 2018
First quarter of the period
28,304-1.6
1,366
ending March 2017
(Note) Comprehensive income First quarter of the period ending March 2018
First quarter of the period ending March 2017

First quarter of the period
ending March 2018
First quarter of the period
ending March 2017

Profit per share

Profit per share after
making potential shareadjustments

Yen

Yen

Sen

First quarter of the period
ending March 2018
Period ending March 2017
(Reference) Equity capitalMillion yen%

Million yen

%

910

-29.7

600

-23.5

43.2

1,295

12.6

784

9.0

1,060 Million yen (542.6 %)165 Million yen (-86.0 %)

Sen

13.46

－

17.60

－

(2) Consolidated financial position
Total assets

%
-49.1

Net assets

Equity capital ratio

Million yen

Million yen%

Net assets per share
Yen Sen114,158

58,48351.1

1,307.60

48.8

1,296.64

118,454
58,004First quarter of the period ending March 2018 58,304 Million yen
Period ending March 2017 57,817 Million yen

2. Dividends
End of first quarter
Period ending March 2017
Period ending March 2018
Period ending March 2018
(Forecast)

Yen Sen――Annual dividends
End of second quarter End of third quarter

Period end

Through year

Yen Sen
10.00

Yen Sen―Yen Sen
13.00

Yen Sen
23.00

11.50

―

23.00

―

(Note) 1. Presence of revision from dividend forecast published most recently: None
(Note) 2. Because we are scheduled to have a stock merger of 2 common shares to 1 common share, which will become effective on October 1, 2017,
we are describing the period-end dividend per share in March 2018 (forecast) as the figure after the stock merger of the shares, and aredescribing the sum of annual dividends as “-”. The period-end dividend per share (forecast) in March 2018 when stock merger is notconsidered will be 11.50 yen and the annual dividend 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 for total period andfrom the same quarter of the previous year for the second quarter consolidated cumulative period.)

Net sales
Second quarter
consolidated cumulative
periodTotal period

Operating profit

Profit attributableto owners of parent

Ordinary profit

Profit per share

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

65,500

11.6

3,200

3.7

3,200

9.9

2,100

14.6

94.18

141,000

12.6

7,200

6.7

7,200

3.8

4,800

3.5

215.28Yen

Sen(Reference) 1. Estimated net sales of construction contract orders (the second quarter consolidated cumulative period) 70,500 Million yen
2. 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 are scheduled to have a stock merger of 2 common shares to 1 common share, which will become effective on October 1,
2017, we are describing profit per share in the second quarter consolidated cumulative period and total period in the foresight ofconsolidated results in March 2018 in the figures where we consider the stock merger. The profits per share of the second quarter
consolidated cumulative period and total period when we do not consider the stock merger are as follows.
The second quarter consolidated cumulative period: 47.09 yen, and total period: 107.64 yen.

* 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)
First quarter of period ending March 2018
45,963,803 shares Number of treasury shares at the end of period
First quarter of period ending March 2018
1,374,977 shares Average numbers of shares in the period (Quarter total)
First quarter of period ending March 2018
44,590,038 shares

Period ending March 2017

45,963,803 shares

Period ending March 2017

1,373,273 sharesFirst quarter of period ending March 201744,595,067 shares* 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 for total period andfrom the same quarter of the previous year for the second quarter consolidated cumulative period.)

Net sales
Second quarter
consolidated cumulative
periodTotal period

Operating profit

Ordinary profit

ProfitProfit per share

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

65,000

12.0

3,200

4.0

3,200

10.2

2,100

15.1

Yen

Sen
94.18

140,000
13.0
7,200
6.8
7,200
3.9
4,800
3.7
215.28(Reference) 1. Estimated net sales of construction contract orders (the second quarter consolidated cumulative period) 70,000 Million yen
2. 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 are scheduled to have a stock merger of 2 common shares to 1 common share, which will become effective on October 1,
2017, we are describing profit per share in the second quarter consolidated cumulative period and total period in the foresight ofindividual results in March 2018 in the figures where we consider the stock merger. The profits per share of the second quarter
consolidated cumulative period and total period when we do not consider the stock merger are as follows.
The second quarter consolidated cumulative period: 47.09 yen, and total period: 107.64 yen.

DAI-DAN Co., Ltd. (1980), Brief Report on the First 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. Quarterly 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)(First Quarter Consolidated Cumulative Period) ................................................................................... 6(Consolidated Statements of Comprehensive Income)(First Quarter Consolidated Cumulative Period) ................................................................................... 7(3) Annotation Items Concerning Quarterly Consolidated Financial Statements .............................................. 8(Notes to Going Concern Assumption) ................................................................................................ 8(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity)........................................ 8
3. Supplementary Information ....................................................................................................................... 8
Divisional net sales of construction contract orders received, completed construction contracts, and uncompleted
construction contracts (consolidated) ......................................................................................................... 8

1

DAI-DAN Co., Ltd. (1980), Brief Report on the First 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 decreased by 934 million yen (-2.5%) from the samequarter consolidated cumulative period of the previous year, resulting in 37,153 million yen.
Net sales of completed construction contracts decreased by 457 million yen (-1.6%) from the same quarter
consolidated cumulative period of the previous year, resulting in 27,847 million yen.
Gross profit on completed construction contracts decreased by 572 million yen (-14.1%) from the samequarter consolidated cumulative period of the previous year, resulting in 3,495 million yen, due to thedecrease in the net sales of completed construction contracts.
Operating profit decreased by 671 million yen (-49.1%) from the same quarter consolidated cumulative
period of the previous year, resulting in 695 million yen, due to the decrease in the gross profit on completed
construction contracts.
Ordinary profit decreased by 385 million yen (-29.7%) from the same quarter consolidated cumulative
period of the previous year, resulting in 910 million yen due to the decrease in the operating profit, despite
the fact that foreign exchange losses of 246 million yen caused in the same quarter of the previous year
turned to foreign exchange gains of 28 million yen in the current first quarter consolidated cumulative
period.
Profit attributable to owners of parent decreased by 184 million yen (-23.5%) from the same quarter
consolidated cumulative period of the previous year, resulting in 600 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 quarterly net loss attributable to noncontrolling interests.
(2) Explanation on Financial Conditions(Assets)
Current assets at the end of the current first quarter consolidated accounting period decreased by 4,907
million yen (-5.6%) from the end of the previous consolidated accounting year, resulting in 82,609 million
yen. The main factor for this is that the decrease of 9,806 million yen (-19.9%) in notes receivable, accounts
receivable from completed construction contracts surpassed the increase of 3,711 million yen (45.2%) in theelectronically recorded monetary claim. Non-current assets increased by 610 million yen (2.0%) from theend of the previous consolidated accounting year, resulting in 31,549 million yen. The main factors for thisare the increase of 506 million yen (3.1%) in investment securities, etc.
As a result, total assets decreased by 4,296 million yen (-3.6%) from the end of the previous consolidated
accounting year, resulting in 114,158 million yen.
(Liabilities)
Current liabilities at the end of the current first quarter consolidated accounting period decreased by 4,558
million yen (-8.5%) from the end of the previous consolidated accounting year, resulting in 49,147 million
yen. The main factors for this are the decrease of 5,490 million yen (-27.4%) in notes payable, accounts
payable for construction contracts and of 1,113 million yen (-97.4%) in income taxes payable, etc. Noncurrent liabilities decreased by 217 million yen (-3.2%) from the end of the previous consolidated
accounting year, resulting in 6,527 million yen. The main factors for this are the decrease of 403 million yen(-19.7%) in long-term loans payable, etc.
As a result, total liabilities decreased by 4,775 million yen (-7.9%) from the end of the previous consolidated
accounting year, resulting in 55,674 million yen.
(Net Assets)
Total net assets at the end of the current first quarter consolidated accounting period increased by 479
million yen (0.8%) from the end of the previous consolidated accounting year, resulting in 58,483 million
yen. The main factor for this is the increase of 365 million yen (5.8%) in the valuation difference on
available-for-sale securities.
As a result, the equity capital ratio resulted in 51.1% (48.8% at the end of the previous consolidated
accounting year).

2

DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2018(3) Explanation on Future Estimate Information such as Estimate of Consolidated Performance
The operating results in the current first quarter consolidated cumulative period decreased in both income
and profit as compared with the same quarter of the previous year. However, as shown in “3. Supplementary
information: Divisional net sales of construction contract orders received, completed construction contracts,
and uncompleted construction contracts (consolidated)” on page 8, the net sales of uncompleted construction
contracts in the current first quarter period increased by 18,277 million yen (17.0%) from the same quarterof the previous year, resulted in 125,787 million yen (of which the expected net sales of completed
construction contracts in the current consolidated accounting year accounts for 73,750 million yen,increasing by 15,615 million yen (21.2%) from the same quarter of the previous year). Especially, the net
sales of uncompleted construction contracts for profitable renovation work increased by 12,575 million yen(49.9%) from the same quarter of the previous year, standing at 37,786 million yen (of which the expected
net sales of completed construction contracts in the current consolidated accounting year accounts for 27,869
million yen, increasing by 7,221 million yen (25.9%) from the same quarter of the previous year), which will
be expected to contribute to the profits of the second quarter consolidated accounting period onward.
Therefore, the estimate of performance published on May 11, 2017 on the second quarter consolidated
cumulative period and total period remains unchanged.

3

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

2. Quarterly Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(in million yen)Previous Consolidated
Accounting Year(As of March 31, 2017)

Current First Quarter
Consolidated Accounting
Period(As of June 30, 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

26,576

27,53649,19839,392

8,216

11,928

478

891

0

0

Deferred tax assets

1,194

823

Other

1,857

2,041

-6

-5

87,516

82,609

4,694

4,688

682

646

16,57417,0800

0

Net defined benefit asset

7,560

7,711

Other

1,615

1,611

Allowance for doubtful accounts

-188

-190

Total investments and other assets

25,562

26,21430,93831,549118,454

114,158

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 First Quarter Financial Statements for the Period Ending March 2018

(in million yen)Previous Consolidated
Accounting Year(As of March 31, 2017)

Current First Quarter
Consolidated Accounting
Period(As of June 30, 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

20,051

14,56016,3843,880
1,143

20,198
3,726
29

3,028

2,365

－
－
76
254
8,887
53,705

1,068
17
70
206
6,902
49,147

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

1,651
3,237
1,336
6
296
0
6,527
55,6744,479
4,809
43,290-678
51,901

4,479
4,809
43,311-680
51,919

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

6,710
14
-340
6,384
179
58,483
114,158DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2018

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(First Quarter Consolidated Cumulative Period)
Previous First Quarter
Consolidated Cumulative
Period(From April 1, 2016
to June 30, 2016)
28,304
24,236
4,068
2,701
1,366

(in million yen)
Current First Quarter
Consolidated Cumulative
Period(From April 1, 2017
to June 30, 2017)27,847
24,351
3,495
2,800
695

1
130
89
－
8

1
131
83
28
9

229

254

33
3
246
17

32
0
－
7

300

40

1,295

910

0
－

0
8

0

9

－
73

0
－

Total extraordinary losses

730Profit before income taxes

1,222

919

Income taxes - current
Income taxes - deferred

10
433

-28
355

Total income taxes

443

327

Profit779

591

Loss attributable to non-controlling interests (-)-5-8Profit attributable to owners of parent

784

600

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 disaster

6

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

(Consolidated Statements of Comprehensive Income)(First Quarter Consolidated Cumulative Period)
Previous First Quarter
Consolidated Cumulative
Period(From April 1, 2016
to June 30, 2016)
779

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(in million yen)
Current First Quarter
Consolidated Cumulative
Period(From April 1, 2017
to June 30, 2017)
591

-683
-17
87
-614
165

365
2
100
468
1,060

179

1,068

-14

-7

DAI-DAN Co., Ltd. (1980), Brief Report on the First 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)

Net sales of uncompleted
construction contracts

Net sales of completed
construction contracts

Net sales of construction contract
orders received(in million yen)

Electrical equipment
installations

Previous First Quarter
Consolidated Cumulative
Period(From April 1, 2016
to June 30, 2016)
Component
Amountratio %
6,076
16.0

Current First Quarter
Consolidated Cumulative
Period(From April 1, 2017
to June 30, 2017)
Component
Amountratio %
7,197
19.4

Increased(decreased)amountIncrease(decrease)
rate

1,120

18.4

24,98965.6

22,87261.5-2,116

-8.5

7,021

18.4

7,082

19.1

61

0.9

Total

38,087100.0

37,153

100.0

-934

-2.5

(Renovations)

16,31742.8

22,663

61.0

6,346

38.9

(Overseas operations)

2,048

5.4

1,327

3.6

-720

-35.2

Electrical equipment
installations

6,160

21.8

4,774

17.1

-1,385-22.5

15,961

56.4

17,320

62.2

1,358

8.5

6,182

21.8

5,752

20.7

-430

-7.0

Total

28,304100.0

27,847

100.0

-457

-1.6

(Renovations)

16,76859.2

13,49648.5-3,271-19.5(Overseas operations)

963

3.4

930

3.3

-32

-3.4

Electrical equipment
installations

14,341

13.4

19,855

15.8

5,513

38.4

Air-conditioning
installations

68,407

63.6

76,537

60.8

8,130

11.9

24,761

23.0

29,394

23.4

4,633

18.7

Total

107,510100.0

125,787

100.0

18,27717.0(Renovations)25,21023.5

37,78630.0

12,575

49.9(Overseas operations)

4,026

3.8

3,025

2.4

-1,001-24.9

Air-conditioning
installations
Plumbing

Air-conditioning
installations
Plumbing

Plumbing

8