Brief Report on the Third Quarter Financial Statements for the Period Ending March, 2015
[Japanese Standard] (Consolidated)
February 5, 2015
Listed Shares Exchanges:
Tokyo Stock Exchange 1st section

Name of listed company: DAI-DAN Co., Ltd.
Code No.: 1980
URL: http://www.daidan.co.jp/

Representative of Company: Shohei KITANO, Representative Director, President and Chief Operating Officer (C.O.O.)
Inquiries to be addressed to: Hirokazu KAWAKUBO, Director, Senior Executive Corporate Officer, Head of General Administration Division
Date scheduled to submit Quarterly report:
February 6, 2015
Date scheduled for dividend payment commencement:
Creating supplements to the financial statement:
None
Holding a briefing sessions on the financial statement:
NoneTel.: (06) 6447 - 8003

(Amounts are indicated with figures less than 1 million yen discarded)
1. Consolidated business results for the third quarter of the period ending March 2015 (From April 1, 2014 to December 31, 2014)(1) Consolidated management performance (Cumulative total)(Percentage indications show increase or decrease from the previous period.)

Net sales

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

Third quarter of the period ending March 2015

85,223

0.3

2,980

36.0

3,249

27.2

1,833

62.5

Third quarter of the period ending March 2014

85,010

1.7

2,191

621.4

2,554

293.1

1,127

―

(Note) Comprehensive income: Third quarter of the period ending March 2015
Third quarter of the period ending March 2014

Net income per share after
making potential shareadjustments

Net income per shareYen

3,126 million yen (-2.3 %)3,198 million yen (377.9 %)

Sen

Yen

Sen

Third quarter of the period ending March 2015

41.10

―

Third quarter of the period ending March 2014

25.28

―

(2) Consolidated financial position
Total assets
Third quarter of the period ending March 2015

Net assets

Net assets per share

Million yen%

104,889

48,40145.9

1,080.56

46,609Period ending March 2014

41.7
46,420 million yen

1,040.67

Period ending March 2014

111,347
Third quarter of the period ending March 2015 48,196 million yen,

(Reference) Equity capital:

Equity capital ratio

Million yen

Yen

Sen

2. Dividend status
Annual Dividends
End of first quarter
Yen

End of second quarter
Sen

Yen

―
―

Period ending March 2014
Period ending March 2015

End of third quarter

Sen

Yen

Period end

Sen

8.00
8.00

Period ending March 2015 (Forecast)Yen

Through year
Sen

Yen

Sen

―

8.00

16.00

―

8.00

16.00

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

3. Estimate of consolidated performance for the period ending March 2015 (From April 1, 2014 to March 31, 2015)(Percentage figures represent increase or decrease from the previous accounting year.)Net sales
Total period

Operating income

Ordinary income

Net income

Net income per share

Million yen%

Million yen%

Million yen%

Million yen%

123,000

- 1.2

4,000

- 4.1

4,000

- 10.5

2,200

31.7

(Note) Presence or absence of revision from dividend forecast published most recently: None
(Reference) Estimated net sales of construction contract orders (Total period) 123,000 million yen

Yen

Sen
49.32

* Annotations(1) Changes in key subsidiaries in the current quarter consolidated cumulative period (changes in specific subsidiaries requiring changes 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, revision redisplay• Changes in accounting policies due to revision of accounting standards etc.: Yes‚ Changes in accounting policies other than •: NoneƒChanges in accounting estimates: None
„Revision redisplay: None
(Note) Refer to (3) Changes in Accounting Policies, Changes in Accounting Estimates, and Revision Redisplay in 2. Items Concerning Summary
Information (Annotation) in attached document on page 3 for detail.
(4) Number of issued shares (common stock)• Number of issued shares at the end of period (including treasury stock)‚ Number of treasury stock at the end of period
ƒ Average numbers of shares in the period (Quarter total)•‚ƒ

Third quarter of period ending
March 2015
Third quarter of period ending
March 2015
Third quarter of period ending
March 2015

45,963,803 shares

Period ending March 2014

45,963,803 shares

1,360,662 shares

Period ending March 2014

1,357,727 shares

44,605,995 shares

Third quarter of period ending
March 2014

44,610,457 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 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 theabove forecasts and forecasts of business results, please refer to information in the section “1. Qualitative Information on Current Quarter BusinessSettlement, (3) Explanation about 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 2015 (From April 1, 2014 to March 31, 2015)(Percentage figures represent increase or decrease from the previous accounting year.)Net sales
Total period

Operating income

Ordinary income

Net income

Net income per share

Million yen%

Million yen%

Million yen%

Million yen%

122,000

- 0.8

4,000

- 1.5

4,000

- 8.2

2,200

37.5

(Note) Presence or absence of revision from dividend forecast published most recently: None
(Reference) Estimated net sales of construction contract orders (Total period) 122,000 Million yen

Yen

Sen
49 .32

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2015

○ Contents of Information
1. Qualitative Information on Current Quarter Business Settlement ................................................... 2(1) Explanation about Operating Results .............................................................................................................. 2(2) Explanation about Financial Positions ............................................................................................................ 2(3) Explanation about Future Estimate Information such as Consolidated Earnings Forecasts ............................ 3

2. Items Concerning Summary Information (Annotation) ................................................................... 3(1) Changes in Major 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, Revision Redisplay ............................. 3

3. Consolidated Financial Statements .................................................................................................. 4(1) Consolidated Balance Sheets .......................................................................................................................... 4(2) Consolidated Income Statements and Consolidated Statements of Comprehensive Income .......................... 6
Consolidated Income Statements
Third Quarter Consolidated Cumulative Period ......................................................................................... 6
Consolidated Statements of Comprehensive Income
Third 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(Material Subsequent Events) .......................................................................................................................... 8

4. Supplementary Information ............................................................................................................. 9
Divisional net sales of construction contract orders received, completed construction contracts, anduncompleted construction contracts (consolidated) ................................................................................................................ 9-1-

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2015

1. Qualitative Information on Current Quarter Business Settlement(1) Explanation about Operating Results
The economy of Japan during the current third quarter consolidated accounting period continued to experiencean unpredictable situation caused by the low price of crude oil, the non-transparency of European economy etc.
though the influence of the increase of consumption tax on the reduction of consumption was mitigated, whereby
the economy did not reach a substantial rebounding.
In the construction industry, while the increase in public investment due to the effect of the moving-up of theimplementation of budget by the government was seen, although a large amount of increase had been expected for
private equipment investment due to the improvement of corporate profits in addition to the necessity of therenewal of existing facilities caused by their obsoleteness, the private equipment investment resulted in the lack ofstrengthening influenced by the shortage of manpower etc.
Under the circumstances, as a result of that we tackled the securing of orders to be received and profit based
upon our mid-term management plan “Dai-Dan to Challenge a New Era,” our achievements during the current
third quarter consolidated accounting period were as follows.
Net sales of construction contract orders received amounted to 117,639 million yen which increased from that of
the same consolidated quarter of the previous year by 21,683 million yen.
Net sales of completed construction contracts slightly increased from that of the same consolidated quarter ofthe previous year to 85,223 million yen.
Though the net sales of completed construction contracts increased only slightly, by the improvement in grossprofit margin of completed construction contracts, the gross profit on completed construction contracts increased
by 896 million yen to 10,417 million yen.
Thanks to the increase of the gross profit on completed construction contracts, the operating income amounted
to 2,980 million yen which increased from that of the same consolidated quarter of the previous year by 789
million yen.
Although the foreign exchange gain amounted to 78 million yen which decreased from that of the same
consolidated quarter of the previous year by 121 million yen, owing to the increase of the operating income, theordinary income amounted to 3,249 million yen which increased from that of the same consolidated quarter of theprevious year by 695 million yen.
In regard to the quarter’s net income, because we were prosecuted by the Tokyo District Public Prosecutor’s
Office on March 4, 2014 on suspicion that we violated the antimonopoly law as to the bidding on the facilities’
construction of Hokuriku Shikansen, we reviewed the amount of loss that might happen after the prosecution andallocated the provision of loss reserve related to the antimonopoly law by 92 million yen, and deducted corporatetax, resident tax, business tax, adjustment amounts of corporate tax etc. and minority interests in income, thereby
the net income amounted to 1,833 million yen which increased from that of the same consolidated quarter of theprevious year by 705 million yen.
(2) Explanation about Financial Positions(Assets)
Current assets at the end of the current third quarter consolidated accounting period decreased by 8,008 million
yen from the end of the previous consolidated accounting year to 77,716 million yen, primarily because decreases
in cash and deposit (1,332 million yen), notes receivable and accounts receivable from completed construction
contracts (8,754 million yen) etc. surpassed the increase of payment of uncompleted construction contracts (1,041
million yen) etc.
Noncurrent assets amounted to 27,173 million yen, increasing from that of the end of the previous consolidated
accounting year by 1,550 million yen, primarily because of the increase of investment securities (1,847 million
yen) etc.
As a result, total assets decreased by 6,457 million yen from the end of the previous consolidated accounting
year to 104,889 million yen.
(Liabilities)
Current liabilities at the end of the current third quarter consolidated accounting period decreased by 8,530
million yen from the end of the previous consolidated accounting year to 50,009 million yen, primarily because of
the decreases of notes payable and accounts payable for completed construction contracts (6,797 million yen) andthe decrease unpaid corporate tax (1,246 million yen).
Fixed liabilities increased by 281 million yen from the end of the previous consolidated accounting year to
6,478 million yen, primarily because the increase in deferred tax liabilities (476 million yen) etc. surpassed thedecrease in long-term loans payable (184 million yen).
As a result, total liabilities decreased by 8,249 million yen from the end of the previous consolidated accounting
year to 56,488 million yen.
-2-

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2015

(Net Assets)
Net assets at the end of the current third quarter consolidated accounting period increased by 1,791 million yen
from the end of the previous consolidated accounting year to 48,401 million yen, primarily because of theincreases in retained earnings (500 million yen), in valuation difference on available-for-sale securities (1,196
million yen) and in the accumulated adjustment amount related to retirement benefits (79 million yen) etc.
As a result equity capital ratio came to 45.9% (41.7% at the end of the previous consolidated accounting year).
(3) Explanation about Future Estimate Information such as Consolidated Earnings Forecasts
Business result forecast to the third quarter consolidated accounting period and full period published on May 8,
2014 remains unchanged.

2. Items Concerning Summary Information (Annotation)(1) Changes in Major Subsidiaries in the Current Quarter Consolidated Cumulative PeriodNone(2) Application of Particular Accounting to the Preparation of Quarter Consolidated Financial Statements
None(3) Changes in Accounting Policies, Changes in Accounting Estimates, Revision Redisplay(Adoption of accounting standard for retirement benefits)
Concomitant with the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26 May 17, 2012,
hereinafter referred to as the “Accounting Standard for Retirement Benefits”) and Guidance on AccountingStandard for Retirement Benefits (ASBJ Guidance No. 25 May 17, 2012, hereinafter referred to as the “Guidanceon Retirement Benefits”), the Company Group has applied the regulations stipulated under Article No. 35 of the
Accounting Standard for Retirement Benefits and Article No. 67 of the Guidance on Retirement Benefits from thecurrent first quarter consolidated accounting period. Under the new standards, the method of calculating
retirement benefit obligations and service cost is revised, with the method of determining the discount rate revised
from the average number of remaining service years of employees to a single weighted average discount rate
reflecting the estimated timing and amount of benefit payment.
In regard to the adoption of the Accounting Standard for Retirement Benefits, the Company Group follows thetransitional measure stipulated under Article No. 37 of the Accounting Standard for Retirement Benefits, and theamount of financial impact arising from the changes in method of calculating retirement benefit obligations andservice cost is recognized as an adjustment to retained earnings at the beginning of the third quarter consolidated
accounting period.
As a result, net defined benefit liability has increased by 88 million yen from the beginning of the current third
quarter consolidated accounting period, and net defined benefit asset, deferred tax liabilities, and retained earnings
have decreased by 878 million yen, 347 million yen, and 618 million yen, respectively.
The effect on the operating income, ordinary income, and net income before taxes for the current third quarter
consolidated accounting period is minimal.

-3-

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2015

3. Consolidated Financial Statements(1) Consolidated Balance Sheets
Previous Consolidated
Accounting Year
(March 31, 2014)
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-4-(in million yen)
Current Third Quarter
Consolidated Accounting Period(December 31, 2014)

24,62657,18923,29348,435

152
0
1,273
2,488
-6
85,724

1,193
0
1,041
3,757
-5
77,716

3,788
260

3,961
173

13,229
1
6,921
2,086
-665

15,077
1
6,442
1,710
-193

21,57423,03925,623

27,173111,347

104,889

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2015

(in million yen)
Current Third Quarter
Consolidated Accounting Period(December 31, 2014)

Previous Consolidated
Accounting Year
(March 31, 2014)
Liabilities
Current liabilities
Notes payable, accounts payable forconstruction 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
Loss reserve related to antimonopoly law
Other40,007

33,209

5,686
1,381
3,124

5,847
135
2,452

－
－
92

1,012
43
90

130
771
7,346

429
703
6,084

58,53950,009

1,903
2,304
1,398
220
18
352
0

1,719
2,781
1,392
220
13
352
0

6,197

6,478

Total liabilities

64,73756,488Net Assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

4,479
4,809
34,597
-666

4,479
4,809
35,098-668

43,221

43,720

3,690

4,886

68
-559

70
-480

3,199

4,476

Minority interests

189

205

Total net assets

46,60948,401

111,347

104,889

Total current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Provision for environment measures
Provision for overseas investment loss
Long-term accounts payable
Other
Total noncurrent liabilities

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Total liabilities and net assets-5-DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2015

(2) Consolidated Income Statements and Consolidated Statements of Comprehensive Income(Consolidated Income Statements)(Third Quarter Consolidated Cumulative Period)

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
Other

Previous Third Quarter
Consolidated Cumulative Period(From April 1, 2013 to
December 31, 2013)
85,01075,489
9,520
7,329
2,191

(in million yen)
Current Third Quarter
Consolidated Cumulative Period(From April 1, 2014 toDecember 31, 2014)
85,22374,806
10,417
7,436
2,980

10
164
91
200
33
500

9
185
102
78
27
403

113
14
9

120
5
9

138

135

2,554

3,249

Extraordinary income
Gain on sales of noncurrent assets－

1

Total extraordinary income

－

1

－
4
0
40
0
－

5
－
24
20
0
92

345

－

Total extraordinary loss

391

144

Income before income taxes

2,162

3,106

Income taxes-current
Income taxes-deferred

582
414

936
331

Total income taxes

996

1,267

1,165

1,838

37

5

1,127

1,833

Total non-operating expenses
Ordinary income

Extraordinary loss
Impairment loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of golf club membership
Provision of loss reserve related to antimonopoly
law
Provision for loss on litigation

Income before minority interests
Minority interests in income
Net income-6-DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2015

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

Income before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
before tax

Previous Third Quarter
Consolidated Cumulative Period(From April 1, 2013 to
December 31, 2013)
1,165(in million yen)
Current Third Quarter
Consolidated Cumulative Period(From April 1, 2014 toDecember 31, 2014)
1,838

1,999

1,196

33
－

12
79

2,032

1,287

3,198

3,126

3,148

3,109

50

16

Total other comprehensive income
Comprehensive income(Particulars)
Comprehensive income attributable to ownersof parent
Comprehensive income attributable to minority
interests-7-

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2015

(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(Material Subsequent Events)
Because we were rendered a definitive judgment by the Tokyo District Court that we violated theantimonopoly law as to the work for machine and facilities for melting snow bases and the work for machineand facilities for vanishing snow bases of Hokuriku Shinkansen that were ordered by independent administrative
corporation Japan Railway Construction, Transport and Technology Agency, on January 14, 2015, our businesslicense was suspended as follows by Kinki Regional Development Bureau of Ministry of Land, Infrastructure,
Transport and Tourism in accordance with Section 28 paragraph 3 of the Construction Industry Act.
Although there is a possibility that such a disposition will exert influence over construction contract orders
received, it is difficult to rationally estimate the influenced amount.
1.

Scope of business for which suspension was ordered.
Out of the operations related to piping work in Japan, those which are related to public works or, if theworks are private ones, those which are granted subsidies etc.

2.

PeriodFor 60 days from January 29, 2015 until March 29, 2015.

-8-

DAI-DAN Co., Ltd. (1980), Brief Report on the Third Quarter Financial Statements for the Period Ending March 2015

4. Supplementary Information
Divisional net sales of construction contract orders received, completed construction contracts, and uncompleted
construction contracts (consolidated)(in million yen)

Net sales of construction contract
orders received

Previous Third Quarter
Consolidated Cumulative
Period(From April 1, 2013 to
December 31, 2013)
Component
Amountratio %
Electrical equipment

Net sales of completed
construction contracts

Previous Consolidated
Accounting Year
(From April 1, 2013 toMarch 31, 2014)
Component
Amountratio %

22,02323.0

26,81722.8

28,80822.6

57,29959.7

64,69955.0

75,27759.1

Plumbing

16,63317.3

26,12222.2

23,307

18.3

Total

95,956100.0

117,639100.0

127,394

100.0(Renovations)

56,58959.0

54,93746.7

71,595

56.2(Overseas operations)

9,915

10.3

8,547

7.3

10,385

8.2

17,84021.0

17,76720.9

26,52821.3

48,24956.8

49,95658.6

71,134

57.2

Plumbing

18,92022.2

17,49920.5

26,783

21.5

Total

85,010100.085,223

100.0

124,445

100.0(Renovations)

41,68349.0

43,96951.6

65,293

52.5(Overseas operations)

3,376

4.0

6,422

7.5

6,237

5.0

15,27316.8

22,421

19.4

13,37016.2

56,82762.7

66,66457.9

51,921

62.7

Plumbing

18,612

20.5

26,04722.7

17,425

21.1

Total

90,713100.0

115,132

100.0

82,716100.0(Renovations)35,26838.9

37,632

32.7

26,664

32.2(Overseas operations)

10,244

11.3

9,977

8.7

7,852

9.5

installations
Air-conditioning
installations

Electrical equipment
installations
Air-conditioning
installations

Electrical equipment
Net sales of uncompleted
construction contracts

Current Third Quarter
Consolidated Cumulative
Period(From April 1, 2014 toDecember 31, 2014)
Component
Amountratio %

installations
Air-conditioning
installations-9-