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

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

Code No.:1980

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

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

Representative of Company: Shohei KITANO, Representative Director, President
Inquiries to be addressed to: Takayuki IKEDA, Director, Senior Executive Corporate Officer, Head of General Administration
Division
Date scheduled to submit Quarterly report:
August 10, 2016
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 2017 (From April 1, 2016 to June 30, 2016)(Percentage indications show increase or decrease from the previous period.)(1) Consolidated management performance (Cumulative total)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Million yen%
Million yen%
Million yen
First quarter of the period
28,304
-1.6
1,366
43.2
1,295
ending March 2017
First quarter of the period
28,754
13.8
954
272.8
1,150
ending March 2016
(Note) Comprehensive income First quarter of the period ending March 2017 165 Million yen (-86.0%)
2016 1,175 Million yen (103.7 %)Net income per share

Net income per shareafter making potential
share adjustments

Yen

Yen

First quarter of the period
ending March 2017
First quarter of the period
ending March 2016

Sen

First quarter of the period
ending March 2017
Period ending March 2016
(Reference) Equity capitalMillion yen

%

784

9.0

185.4

719

217.2

First quarter of the period ending March

Sen

17.60

―

16.14

―

(2) Consolidated financial position
Total assets%
12.6

Net assets

Equity capital ratio

Million yen

Million yen%

Net assets per share
Yen Sen111,065

54,25748.7

1,212.44

122,31254,583First quarter of the period ending March 2017 54,068 Million yen

44.5
Period ending March 2016

1,219.41
54,379 Million yen

2. Dividends
End of first quarter

Annual dividends per share
End of second quarter End of third quarter

Yen Sen――

Period ending March 2016
Period ending March 2017
Period ending March 2017
(Forecast)

Period end

Through year

Yen Sen
9.00

Yen Sen―Yen Sen
11.00

Yen Sen
20.00

10.00

―

10.00

20.00

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

3. Estimate of consolidated performance for the period ending March 2017 (From April 1, 2016 to March 31, 2017)(Percentage indications show increase or decrease from the previous period for total period andfrom the same quarter of the previous year for the 2nd quarter consolidated cumulative period.)

Net sales
2nd quarter consolidated
cumulative period

Operating income

Ordinary income

Profit attributableto owners of parent Net income per share

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

60,500

-1.2

2,300

-3.5

2,300

-9.3

1,400

-10.9

138,000
-0.3
6,500
-0.6
6,500
-4.0
4,000
-5.9
Total period(Note) Presence of revision from dividend forecast published most recently: None
(Reference) 1. Estimated net sales of construction contract orders (the 2nd quarter consolidated cumulative period) 71,500 Million yen
2. Estimated net sales of construction contract orders (Total period)
143,000 Million yen

Yen

Sen
31.39
89.69

* Annotations(1) Changes in key subsidiaries in the current quarter consolidated cumulative period (changes in specific subsidiaries requiringchanges of consolidation scope): None
(2) Application of particular accounting to the preparation of quarter consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, restatement
 Changes in accounting policies due to revision of accounting standards etc.: Yes
 Changes in accounting policies other than : None
 Changes in accounting estimates: None Restatement: None
(Note) For details, please refer to Attached Data p.3 “2. Items Concerning Summary Information (Annotation).”(4) Number of issued shares (common stock) Number of issued shares at the end of period (including treasury stock)
First quarter of period ending March 2017 45,963,803 shares Number of treasury stock at the end of period
First quarter of period ending March 2017
1,369,274 shares Average numbers of shares in the period (Quarter total)
First quarter of period ending March 2017 44,595,067 shares

Period ending March 2016

45,963,803 shares

Period ending March 2016

1,368,636 sharesFirst quarter of period ending March 2016
44,600,498 shares* Display Concerning State of Quarter Review Procedure Implementation

Quarter report review under the Financial Instruments and Exchange Act is implemented at the time of disclosure of this quarter
settlement brief statement.

* Explanation on adequate use of achievement forecasts and other noteworthy matters

The above forecasts are based on the information available at the time of preparation of this document and the assumption
considered as reasonable.
Consequently, actual results differ materially from forecasts above due to changes in business results. For precautions for use of
the assumptions for the above forecasts and forecasts of business results, please refer to information in the section “1.
Qualitative Information on Current Quarter Business Settlement, (3) Explanation on Future Estimate Information such as
Consolidated Earnings Forecasts” on page 3.

(Reference) Estimate of individual performance
Estimate of individual performance for the period ending March 2017 (From April 1, 2016 to March 31, 2017)(Percentage indications show increase or decrease from the previous period for total period
and from the same quarter of the previous year for the 2nd quarter cumulative period.)
Net income per
Operating income Ordinary income
Net income
share

Net sales
2nd quarter consolidated
cumulative period

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

60,000

-1.0

2,300

-2.3

2,300

-8.2

1,400

-10.5

Yen

Sen
31.39

Total period
137,000
-0.1
6,500
0.2
6,500
-3.3
4,000
-5.1
89.69
(Note) Presence of revision from dividend forecast published most recently: None
(Reference) (1) Estimated net sales of construction contract orders (the 2nd quarter consolidated cumulative period) 71,000 Million yen(2) Estimated net sales of construction contract orders (Total period) 142,000 Million yen

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

 Contents of Information
1. Qualitative Information on Current Quarter Business Settlement ................................................................... 2(1) Explanation on Operating Results ......................................................................................................... 2(2) Explanation on Financial Conditions ..................................................................................................... 2(3) Explanation on Future Estimate Information such as Consolidated Earnings Forecasts ............................... 3
2. Items Concerning Summary Information (Annotations) ................................................................................ 3(1) Changes in Significant Subsidiaries in the Current Quarter Consolidated Cumulative Period ....................... 3(2) Application of Particular Accounting to the Preparation of Quarter Consolidated Financial Statements ........ 3(3) Changes in Accounting Policies, Changes in Accounting Estimates, Restatement ...................................... 3
3. Consolidated Financial Statements ............................................................................................................. 4(1) Consolidated Balance Sheets ................................................................................................................ 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income...................... 6(Consolidated Statements of Income) ...................................................................................................... 6(First Quarter Consolidated Cumulative Period) ........................................................................ 6(Consolidated Statements of Comprehensive Income)............................................................................... 7(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
4. Supplementary Information ....................................................................................................................... 8
Divisional net sales of construction contract orders received, completed construction contracts, anduncompleted construction contracts (consolidated)....................................................................................... 8

1

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

1. Qualitative Information on Current Quarter Business Settlement(1) Explanation on Operating Results
The economy in Japan during the current 1st quarter consolidated accumulative period fell in
non-transparent situation for the future, such as the solid corporate income was affected by the U.K.’s
leaving from European Union that happened in the end of June and by the sluggishness which arose in the
movement of the improvement of operating results of companies due to stronger yen that advanced rapidly.
In the construction industry, private equipment investment was expected to increase though public
investment would slowly decrease, but by the influence of non-transparency for the future due to stronger
yen, though the investment solidly transitioned but could not reach a significant increase, thereby, it
continued to stay in marking time.
Under the circumstances, based on our mid-term management plan “Dai-Dan to Create and Supply
Environments Necessary for Customers-Always with You,” we tackled the securing of orders and incomes
and as a result, our operating results in the current 1st quarter consolidated accumulative period became asfollows.
Net sales of construction contract orders received increased by 8,382 million yen from the same quarter
consolidated accumulative period of the previous year, resulting in 38,087 million yen.
Net sales of completed construction contracts decreased by 449 million yen from the same quarter
consolidated accumulative period of the previous year, resulting in 28,304 million yen.
Gross profit on completed construction contracts increased by 617 million yen from the same quarter
consolidated accumulative period of the previous year, resulting in 4,068 million yen thanks to theimprovement of the income rate of gross profit on completed construction contracts.
Influenced by the increase of the gross profit on completed construction contracts, operating income
increased by 412 million yen from the same quarter consolidated accumulative period of the previous year,
resulting in 1,366 million yen.
Although the operating income increased, foreign exchange gains of 23 million yen that arose in the samequarter consolidated accumulative period of the previous year turned to foreign exchange losses of 246
million yen in the current 1st quarter consolidated accumulative period, thereby, ordinary income increasedby 145 million yen from the same quarter consolidated accumulative period of the previous year, resulting in
1,295 million yen.
Profit attributable to owners of parent posted a loss of 73 million yen due to loss on disaster as an
extraordinary losses (loss related to the 2016 Kumamoto Earthquake), and as a result of deduction of income
taxes-current, income taxes-deferred and loss attributable to non-controlling interests, it increased by 64
million yen from the same quarter consolidated accumulative period of the previous year, resulting in 784
million yen.
(2) Explanation on Financial Conditions(Assets)
Current assets in the end of the current 1st quarter consolidated accounting year resulted in 80,695 million
yen decreasing by 11,008 million yen from the end of the previous consolidated accounting year. The main
factor for this is that the decrease of notes receivable and accounts receivable from completed construction
contracts (15,896 million yen) surpassed the increase of cash and deposits (4,263 million yen). Non-current
assets resulted in 30,370 million yen decreasing by 238 million yen from the end of the previous
consolidated accounting year. The main factor for this is the decrease of investment securities (984 millionyen). As a result, total assets resulted in 111,065 million yen decreasing by 11,247 million yen from the endof the previous accounting year.
(Liabilities)
Current liabilities in the end of the current 1st quarter consolidated accounting period resulted in 50,791
million yen, decreasing by 10,642 million yen from the end of the previous accounting year. The main
factors for this are the decrease of notes payable and accounts payable for construction contracts (7,394
million yen) and the decrease of income taxes payable (1,589 million yen). Non-current liabilities resulted in
6,016 million yen decreasing by 279 million yen from the end of the previous consolidated accounting year.
The main factor for this is the decrease of deferred tax liabilities (202 million yen).
As a result, total liabilities resulted in 56,808 million yen, decreasing by 10,921 million yen from the end of
the previous consolidated accounting year.
(Net Assets)
Total net assets as of the end of the current 1st quarter consolidated accounting period resulted in 54,257
million yen, decreasing by 325 million yen from the end of the previous consolidated accounting year. The
main factor for this is that the decrease of valuation difference on available-for-sale securities (683 million
2

DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2017yen) surpassed the increase of retained earnings (294 million yen).
As a result, capital adequacy ratio became 48.7% (44.5% for the end of the previous consolidated accounting
year).
(3) Explanation on Future Estimate Information such as Consolidated Earnings Forecasts
Business result forecast for the second quarter consolidated cumulative accounting period and total period
published on May 11, 2016 remains unchanged.

2. Items Concerning Summary Information (Annotations)(1) Changes in Significant Subsidiaries in the Current Quarter Consolidated Cumulative Period
Not applicable(2) Application of Particular Accounting to the Preparation of Quarter Consolidated Financial Statements
Not applicable(3) Changes in Accounting Policies, Changes in Accounting Estimates, Restatement(Application of the handling in administrative work related to the change of the depreciation method
related to the tax reform in 2016)
Accompanying the revision of the Corporation Tax Act, the Company applied “the Handling in
Administrative Work Related to the Change of Depreciation Method Related to the Revision of the
Corporation Tax Act” (Report for Business No.32 issued on June 17, 2016) to the current 1st quarter
consolidated accounting period, and changed the depreciation method related to buildings andaccompanying facilities and structures from declining-balance method to straight-line method. The
influence by this change is minute.

3

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

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

Current First Quarter
Consolidated Accounting
Period(As of June 30, 2016)

AssetsCurrent assets
Cash and deposits

23,56327,827

Notes receivable, accounts receivable from56,15740,260

8,095

9,240

385

814

0

0

Deferred tax assets

1,392

1,019

Other

2,117

1,538

‐7

-6

91,70480,695

4,178

4,757

594

613

16,543

15,5591

1

Net defined benefit asset

7,866

8,014

Other

1,612

1,612

Allowance for doubtful accounts

‐188

-189

Total investments and other assets

25,83624,99830,60830,370122,312

111,065

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

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

Total non-current assets
Total assets

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

(in million yen)Previous Consolidated
Accounting Year(As of March 31, 2016)
Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts
Short-term loans payable
Income taxes payable
Advances received on uncompleted construction
contracts
Provision for bonuses
Provision for directors' bonuses
Provision for warranties for completed construction
Provision for loss on construction contracts
Provision for environmental measures
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Provision for foreign investment loss
Long-term accounts payable - other
Other
Total non-current liabilities
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 First Quarter
Consolidated Accounting
Period(As of June 30, 2016)

42,067

34,673

4,519
1,622
2,794

4,240
32
3,295

－
－
81
628
2
9,717
61,434

977
17
89
538
2
6,925
50,791

1,401
3,208
1,376
5
303
0
6,295
67,729

1,346
3,005
1,356
8
298
0
6,016
56,8084,479
4,809
39,588-674
48,2034,479
4,809
39,882-675
48,496

6,326
20
-169
6,176
203
54,583
122,312

5,642
11
-82
5,571
189
54,257
111,065DAI-DAN Co., Ltd. (1980), Brief Report on the First Quarter Financial Statements for the Period Ending March 2017(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, 2015
to June 30, 2015)
28,75425,303
3,450
2,496
954

(in million yen)
Current First Quarter
Consolidated Cumulative
Period(From April 1, 2016
to June 30, 2016)
28,304
24,236
4,068
2,701
1,366

1
119
86
23
8

1
130
89
－
8

240

229

35
0
－
7

33
3
246
17

44

300

1,150

1,295

1
47

0
－

49

0

1
2
－

－
－
73

Total extraordinary losses

3

73

Profit before income taxes

1,195

1,222

Income taxes-current
Income taxes-deferred

9
461

10
433

Total income taxes

470

443

Profit

724

779

4

-5

719

784

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 income
Non-operating income
Interest income
Dividends 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 income
Extraordinary income
Gain on sales of non-current assets
Profit reversed from the allowance for the loss relating
to the antimonopoly law
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Loss on valuation of golf club membership
Loss on disaster

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

6

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

(Consolidated Statements of Comprehensive Income)(First Quarter Consolidated Cumulative Period)
Previous First Quarter
Consolidated Cumulative
Period(From April 1, 2015
to June 30, 2015)724(in million yen)
Current First Quarter
Consolidated Cumulative
Period(From April 1, 2016
to June 30, 2016)
779

478

-683

3

-17

Remeasurements of defined benefit plans, before tax

-30

87

Total other comprehensive income

450

-614

Comprehensive income

1,175

165

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

1,168

179

6

-14

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

7

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

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

Net sales of uncompleted
construction contracts

Net sales of completed
construction contracts

Net sales of construction contract
orders received

AmountComponent
ratio %

AmountPrevious Consolidated
Accounting Year
(From April 1, 2015 toComponent
ratio %March 31, 2016)
Component
Amountratio %

Electrical equipment
installations

6,187

20.8

6,076

16.0

27,70019.3

Air-conditioning
installations

17,042

57.4

24,98965.6

83,88058.5

Plumbing

6,475

21.8

7,021

18.4

31,922

22.2

Total

29,704100.0

38,087100.0

143,503

100.0(Renovations)

17,85160.1

16,31742.8

75,814

52.8(Overseas operations)

1,173

4.0

2,048

5.4

4,260

3.0

Electrical equipment
installations

6,558

22.8

6,160

21.8

30,80522.3

Air-conditioning
installations

15,91755.4

15,961

56.4

77,298

55.9

Plumbing

6,278

21.8

6,182

21.8

30,242

21.8

Total

28,754100.0

28,304100.0

138,346

100.0(Renovations)

14,81551.5

16,76859.2

77,42156.0(Overseas operations)

3,075

10.7

963

3.4

9,381

6.8

Electrical equipment
installations

17,15818.3

14,341

13.4

14,42514.8

Air-conditioning
installations

53,92357.7

68,407

63.6

59,37960.8

Plumbing

22,43824.0

24,761

23.0

23,921

24.4

Total

93,520100.0

107,510100.0

97,727100.0(Renovations)

30,30532.4

25,21023.5

25,661

26.3(Overseas operations)

6,161

6.6

4,026

3.8

2,942

3.0

8