Brief Report on the Second Quarter Financial Statements for the Period Ending March 2019
[Japanese Standard] (Consolidated)
November 8, 2018

Name of listed company: DAI-DAN Co., Ltd.
Stock Exchange Listing:Code No.: 1980 URL: http://www.daidan.co.jp/
Tokyo Stock Exchange 1st section
Representative of Company: Ichiro Fujisawa, Representative Director, President
Inquiries to be addressed to: Yasuo Kamei, Director, Executive Corporate Officer,
Head of General Administration
Tel. (06) 6447 - 8003
Date scheduled to submit Quarterly report:
November 9, 2018
Date scheduled for dividend payment commencement:
December 3, 2018
Creating supplements to the financial statement:
Yes
Holding a briefing session on the financial statement:
Yes (for instituted investors and analysts)(Amounts are indicated with figures less than 1 million yen discarded)

1. Consolidated business results for the second quarter of the period ending March 2019 (From April 1, 2018 to September 30, 2018)(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 the69,677
2.3
3,649
14.0
3,939
13.5
period ending March 2019
Second quarter of the68,141
16.1
3,201
3.8
3,469
19.1
period ending March 2018
(Note)
Comprehensive income Second quarter of the period ending March 2019 2,967 Million yen 3.1%
Second quarter of the period ending March 2018 2,879 Million yen 173.6%

Profit per share

Million yen

%

2,645

15.1

2,297

25.3

Diluted Profit per share

Yen SenYen Sen
Second quarter of the118.67―
period ending March 2019
Second quarter of the103.05―
period ending March 2018
(Note)
Because we had the share consolidation of two common shares to one common share as of October 1, 2017, “Profit per share” iscalculated assuming that the share consolidation 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

Second quarter of the130,299
66,648
period ending March 2019
Period ending March 2018
130,006
64,417(Reference) Equity capital
Second quarter of the period ending March 2019 66,494 Million yen
Period ending March 2018 64,245 Million yen

Net assets per share%

Yen Sen

51.0

2,982.96

49.4

2,882.07

2. Dividends
End of first quarter
Yen Sen――Annual dividends per share
End of second quarter End of third quarter
Yen Sen
11.50
28.00

Yen Sen―

Period end
Yen Sen
33.00

Through year

Yen Sen
Period ending March 2018―
Period ending March 2019
Period ending March 2019
―
28.00
56.00
(Forecast)(Note 1)
Presence of revision from dividend forecast published most recently: None
(Note 2)
Breakdown of dividend at the end of the period ending March 2018: ordinary dividend 23.00 yen and special dividend 10.00 yen(Note 3)We had the share consolidation of two common shares to one common share as of October 1, 2017. The dividends for the second quarterof the period ending March 2018 and earlier periods indicate the actual dividend amount before the share consolidation.

3. Estimate of consolidated performance for the period ending March 2019 (From April 1, 2018 to March 31, 2019)(Percentage indications show increase or decrease from the previous period.)

Net sales
Mil. yen%

Operating profit

Ordinary profit

Mil. yenMil. yen%

Profit attributable toowners of parent%

Mil. yen%

151,000
5.3
7,500
1.5
7,500
(2.3)
Total period(Reference)
Estimated net sales of construction contract orders (Total period) 148,000 Million yen(Note)
Presence of revision from estimate of performance published most recently: None

5,000

(2.1)

Profit per share
Yen

Sen
224.29* 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)
 Number of treasury shares at the end of
period Average number of shares in the period(quarter total)

Second quarter of
Period ending
period ending
22,981,901 shares
March 2018
March 2019
Second quarter of
Period ending
period ending
690,516 shares
March 2018
March 2019
Second quarter ofSecond quarter
period ending
22,291,510 shares of period ending
March 2019
March 2018

22,981,901 shares
690,284 shares
22,294,169 shares(Note) Because we had the share consolidation of two common shares to one common share as of October 1, 2017, "Average numbers ofshares in the period" is calculated assuming that the share consolidation was executed at the beginning of the previous consolidated
accounting year.

* Brief report on quarterly financial statements is beyond the object of audit by CPA or an audit corporation.
* Explanation about adequate use of achievement forecasts and other noteworthy matters

The above forecasts are based on the information available at the time of preparation of this document and the assumption
considered as reasonable.
Consequently, actual results differ materially from forecasts above due to changes in business results. For precautions for use of
the assumptions for the above forecasts and forecasts of business results, please refer to 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 2019 (From April 1, 2018 to March 31, 2019)(Percentage indications show increase or decrease from the previous period.)

Net sales
Mil. yen

Ordinary profit

Mil. yenMil. Yen%

ProfitProfit per share%

Mil. yen%

Yen Sen150,000
5.4
7,500
1.3
7,500
(2.4)
Estimated net sales of construction contract orders (Total period) 147,000 Million yen
Presence of revision from estimate of performance published most recently: None

5,000

(2.3)

224.29Total period(Reference)(Note)%

Operating profit

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2019

 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) Situations of Cash Flows....................................................................................................................................3(4) 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 Statements 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, anduncompleted construction contracts (consolidated) ..............................................................................................10

1

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2019

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 accounting
period increased by 6,223 million yen or 8.5% from the same quarter consolidated cumulative period of theprevious year, resulting in 79,650 million yen.
Net sales of completed construction contracts increased by 1,535 million yen or 2.3% from the same quarter
consolidated cumulative period of the previous year, resulting in 69,677 million yen.
Gross profit on completed construction contracts increased by 490 million yen or 5.7% from the samequarter consolidated cumulative period of the previous year, resulting in 9,140 million yen.
Operating profit increased by 447 million yen or 14.0% from the same quarter consolidated cumulative
period of the previous year, resulting in 3,649 million yen, due to the increase in the gross profit oncompleted construction contracts.
Ordinary profit increased by 470 million yen or 13.5% from the same quarter consolidated cumulative
period of the previous year, resulting in 3,939 million yen, due to the increases in the operating profit, etc.
Profit attributable to owners of parent increased by 347 million yen or 15.1% from the same quarter
consolidated cumulative period of the previous year, resulting in 2,645 million yen, after deducting theincome taxes - current, 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 decreased by 226
million yen or 0.2% from the end of the previous consolidated accounting year, resulting in 95,533 million
yen. The main factors for this are the decrease of 1,791 million yen or 15.8% in electronically recordedmonetary claims - operating and the decrease of 668 million yen or 19.5% in other current assets. Noncurrent assets increased by 519 million yen or 1.5% from the end of the previous consolidated accounting
year, resulting in 34,766 million yen. The main factors for this are the increase of 431 million yen or 2.3% ininvestment securities and the increase of 312 million yen or 3.5% in net defined benefit asset.
As a result, total assets increased by 293 million yen or 0.2% from the end of the previous consolidated
accounting year, resulting in 130,299 million yen.
(Liabilities)
Current liabilities at the end of the current second quarter consolidated accounting period decreased by 2,577
million yen or 4.3% from the end of the previous consolidated accounting year, resulting in 57,311 million
yen. The main factors for this are the decrease of 1,270 million yen or 6.4% in electronically recorded
obligations - operating and the decrease of 2,431 million yen or 24.4% in other current liabilities. Noncurrent liabilities increased by 639 million yen or 11.2% from the end of the previous consolidated
accounting year, resulting in 6,339 million yen. The main factor for this is the increase of 600 million yen or
21.6% in deferred tax liabilities.
As a result, total liabilities decreased by 1,938 million yen or 3.0% from the end of the previous consolidated
accounting year, resulting in 63,651 million yen.
(Net Assets)
Total net assets at the end of the current second quarter consolidated accounting period increased by 2,231
million yen or 3.5% from the end of the previous consolidated accounting year, resulting in 66,648 million
yen. The main factor for this is the increase of 1,909 million yen or 4.0% in retained earnings.
As a result, the equity capital ratio resulted in 51.0% (49.4% 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 2019(3) Situations of Cash Flows
Cash and cash equivalents (hereinafter referred to as "fund") in the current second quarter consolidated
accounting period increased by 1,866 million yen from the end of the previous consolidated accounting year,
resulting in 29,724 million yen. The situations of each cash flows and their factors in the current second
quarter consolidated accounting period are as follows.
(Cash flows from operating activities)
As a result of the operating activities, the increased fund resulted in 2,569 million yen (increase by 2,114
million yen of the fund in the same quarter consolidated cumulative period of the previous year). The main
factor for this is that the increase factors of the fund such as the posting of profit before income taxes and thedecrease in notes and accounts receivable – trade surpassed the decrease factors of the fund such as thedecrease in notes and accounts payable – trade.
(Cash flows from investing activities)
As a result of the investing activities, the decreased fund resulted in 38 million yen (decrease by 128 million
yen of the fund in the same quarter consolidated cumulative period of the previous year). The main factor forthis is that the purchase of property, plant and equipment and the other payments.
(Cash flows from financing activities)
As a result of the financing activities, the decreased fund resulted in 660 million yen (decrease by 582
million yen of the fund in the same quarter consolidated cumulative period of the previous year). The main
factor for this is that the cash dividends paid.
(4) Explanation on Future Estimate Information such as Estimate of Consolidated Performance
There is no change in the estimate of performance for a full accounting year published on May 10, 2018.

3

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2019

2. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Millions of yen)Previous Consolidated
Accounting Year(As of March 31, 2018)
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
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

Current Second Quarter
Consolidated Accounting
Period(As of September 30, 2018)27,88529,752

52,63852,245

11,319
500
0
3,422
(7)
95,759

9,527
1,261
―
2,754
ሺ7)
95,533

4,704
557

4,660
512

18,602
8,944
1,629
(191)
28,98534,247130,006

19,034
9,257
1,491
ሺ190)
29,592
34,766130,299

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2019

(Millions of yen)Previous Consolidated
Accounting Year(As of March 31, 2018)
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, 2018)

21,996

21,846

19,862
4,026
1,880

18,591
4,068
965

1,733

1,811

―
―
69
358
9,961
59,889

2,268
58
79
90
7,530
57,311

1,299
2,774
1,323
6
296
0
5,700
65,589

1,333
3,375
1,328
6
296
0
6,339
63,651

4,479
4,809
47,307(688)
55,9084,479
4,809
49,217
ሺ689)
57,817

7,798
24
514
8,337
171
64,417130,006

8,098
18
559
8,677
154
66,648130,299

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2019(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Second 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
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
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

6

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

Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2018
to September 30, 2018)
69,67760,536
9,140
5,491
3,649

3
160
93
80
18
356

5
195
107
31
27
367

77
4
7
89
3,469

61
3
11
77
3,939

1
8
10

―
―
―

0
3
4
3,474
1,011
175
1,186
2,288
ሺ8)
2,297

―
―
―
3,939
856
448
1,305
2,634
ሺ11)
2,645

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2019

(Consolidated Statements of Comprehensive Income)(Second 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

7

Previous Second Quarter
Consolidated Cumulative
Period(From April 1, 2017
to September 30, 2017)
2,288

Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2018
to September 30, 2018)
2,634

383
5
201
590
2,879

299
ሺ11)
45
333
2,967

2,885

2,984

(5)

(16)

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2019(3) Consolidated Statements of Cash Flows(Millions of yen)Previous Second Quarter
Current Second Quarter
Consolidated Cumulative Period Consolidated Cumulative Period(From April 1, 2017
(From April 1, 2018
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 allowance 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
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities

8

to September 30, 2018)

3,474
231
1
8
(163)
77

3,939
223
(1)
16
(200)
61

(1)

(0)

(8)
(1)
0
3

―
―
―
―

19

2,184

(545)

(760)

(1,605)
(1)
(23)

707
1
(259)

3,453

(1,420)(1,513)

78

(373)
3,033
163
(76)
(1,005)
2,114

(406)
4,164
200
(62)
(1,732)2,569

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2019

(Millions of yen)Previous Second Quarter
Current Second Quarter
Consolidated Cumulative Period Consolidated Cumulative Period(From April 1, 2017
(From April 1, 2018
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
Other payments
Other proceeds
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

to September 30, 2018)

(123)
1
(2)

(97)
0
(2)

30

2

(0)
0
(60)
24
(128)

(1)
0
(42)
102
(38)

19,080(18,980)
1,000(1,094)
(8)
(579)
(582)

18,280(18,280)
1,100(1,023)
(0)
(735)
(660)

14

(3)

1,417
26,54927,967

1,866
27,85829,724

DAI-DAN Co., Ltd. (1980), Brief Report on the Second Quarter Financial Statements for the Period Ending March 2019(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 Second Quarter
Consolidated Cumulative
Period(From April 1, 2017
to September 30, 2017)
Component
Amountratio %

Current Second Quarter
Consolidated Cumulative
Period(From April 1, 2018
to September 30, 2018)
Component
Amountratio %

Increase(decrease)

AmountRatio %

Electrical installations

12,763

17.4

10,20012.8(2,563)(20.1)

Air conditioning
installations

46,641

63.5

49,307

61.9

2,665

5.7

Plumbing installations

14,022

19.1

20,143

25.3

6,120

43.6

Total

73,427100.0

79,650

100.0

6,223

8.5

(Renovations)

40,862

55.7

40,828

51.3

(34)

(0.1)

(Overseas operations)

2,550

3.5

4,890

6.1

2,339

91.7

Electrical installations

12,27218.0

11,275

16.2

(997)

(8.1)

Air conditioning
installations

40,85060.041,139

59.0

288

0.7

Plumbing installations

15,01822.0

17,262

24.8

2,244

14.9

Total

68,141

100.0

69,677

100.0

1,535

2.3

(Renovations)

34,90851.2

31,28744.9(3,621)(10.4)(Overseas operations)

2,489

3.7

2,861

4.1

372

15.0

Electrical installations

17,923

14.7

13,096

10.0(4,826)(26.9)

Air conditioning
installations

76,77563.1

85,319

65.5

8,544

11.1

Plumbing installations

27,06722.2

31,925

24.5

4,857

17.9

Total

121,767

100.0

130,341

100.0

8,574

7.0

(Renovations)

34,572

28.4

32,83325.2(1,738)(5.0)(Overseas operations)

2,689

2.2

4,118

3.2

1,428

53.1

10