Tadano : Consolidated Financial Results (Quantitative) For Second Quarter of FY 2019

Consolidated Financial Results (Quantitative) For Second Quarter of FY 2019

(April 1, 2019 through September 30, 2019)

In August 2019, Tadano Ltd. celebrated the 100th anniversary of its founding.

Notes:

1. For the purpose of timely English-language financial information disclosure, Tadano Ltd. provides quantitative financial results reports in concurrence with the disclosure of its original Japanese-language financial results. Detailed qualitative information will be disclosed at a later date in a comprehensive financial results report.
2. Forward-lookingstatements contained in this report are based on information available as of the date this report was prepared. A variety of factors may cause actual results to differ from projections.

October 30, 2019

Tadano Ltd.

◇The acquisition of the Demag Mobile Cranes business (Hereafter "Demag") completed on July 31, 2019. In this report, Demag is treated as follows.

・FY2019 Interim Consolidated Financial Statements: B/S of Demag is included.

・FY2019 Business Performance Forecast: P/L of Demag for 5 months from August to December 2019 is included.

・Trends in Global Demand for Mobile Cranes: Crawler Cranes are excluded.

・Market share: Demag products are excluded.

				（Unit: millions of yen）
	FY 2018	FY 2019	Increase/
	First Half	First Half
	Decrease
	Amount	Percentage	Amount	Percentage
Net Sales	82,272	100.0%	100,304	100.0%	18,031
Cost of Sales	60,382	73.4%	74,195	74.0%	13,813
Gross proft on installment sales	121	0.1%	-56	-0.1%	-178
Gross profit	22,011	26.8%	26,051	26.0%	4,039
Selling, general, and	16,267	19.8%	18,478	18.4%	2,210
administrative expenses
Operating income	5,743	7.0%	7,573	7.6%	1,829
Non-operating income and loss	-70	-0.1%	-310	-0.3%	-240
Ordinary income	5,673	6.9%	7,262	7.2%	1,589
Extraordinary income and loss	-3	-0.0%	476	0.5%	479
Income before income taxes	5,669	6.9%	7,739	7.7%	2,069
Corporate taxes	1,569	1.9%	2,684	2.7%	1,115
Net income attributable to	19	0.0%	-9	0.0%	-29
noncontrolling interests
Net income attribute to	4,081	5.0%	5,064	5.0%	982
owners of parent

Balance Sheet （vs. End of Previous Fiscal Year）

(Unit: millions of yen)

	FY 2018 Year-End	FY 2019 First Half		Increase/	Demag
						(Included in
						Decrease
	Amount	Percentage	Amount	Percentage		the total)
Cash deposits	65,952	25.8%	77,441	24.4%	11,489	2,496
Accounts receivable	50,836	19.9%	52,187	16.4%	1,350	6,578
Inventories	62,757	24.5%	96,486	30.4%	33,729	27,938
Other current assets	6,610	2.6%	6,994	2.2%	384	1,444
Total current assets	186,156	72.8%	233,109	73.4%	46,953	38,458
Tangible fixed assets	52,597	20.5%	65,967	20.8%	13,370	4,461
Intangible fixed assets	1,703	0.7%	1,854	0.6%	150	198
Investment and other	15,336	6.0%	16,602	5.2%	1,265	-16,287
assets
Total fixed assets	69,637	27.2%	84,424	26.6%	14,787	-11,627
Total assets	255,793	100.0%	317,534	100.0%	61,740	26,830
Accounts payable	41,792	16.3%	44,652	14.0%	2,860	6,210
Interest-bearing debt	30,165	11.8%	69,124	21.8%	38,958	1,321
Other liabilities	28,810	11.3%	46,622	14.7%	17,811	18,767
Total liabilities	100,768	39.4%	160,399	50.5%	59,630	26,299
Total equity	155,025	60.6%	157,135	49.5%	2,109	531
Total liabilities and	255,793	100.0%	317,534	100.0%	61,740	26,830
equity

2

Net Sales by Product

	Mobile Cranes			(Unit: millions of yen)
	FY 2018	FY 2019	Increase /
(Millions of yen)	Truck Loader Cranes
	Aerial Work Platforms	First Half	First Half	Decrease

120,000		Other
			Amount	Percentage	Amount	Percentage	Amount	Percentage
		100,304		Mobile Cranes	48,515	59.0%	64,199	64.0%	15,683	32.3%
		15,332		Truck Loader	9,605	11.7%	11,265	11.2%	1,659	17.3%
			Cranes
		82,272
80,000		9,507		Aerial Work	9,208	11.2%	9,507	9.5%	299	3.3%
		14,943		Platforms
		11,265
				14,943	18.1%	15,332	15.3%	388	2.6%
		9,208		Other
		9,605
			Total	82,272	100%	100,304	100%	18,031	21.9%
40,000
	64,199		♦Outside Japan sales	46.0%	→	46.0%
		48,515
				Breakdown of Mobile Crane Sales Inside and Outside Japan
0				Japan		17,915		24,984	7,069	39.5%
		FY 2018 First Half FY 2019 First Half		Outside Japan		30,600		39,214	8,614	28.2%

3

Sales Trends by Market Outside Japan

（Millions of yen）							Sales grew 21.9% compared to the same quarter of the previous fiscal year.
	120,000								Sales grew 40.5% in North America, 8.8% in Asia and 19.9% in Middle East,
									but fell 9.5% in Europe compared to the same quarter of the previous fiscal year.
	100,000
	80,000
			The GR-1600XL, one of the
	60,000		world's largest-capacity Rough
			Terrain Cranes
	40,000
	20,000
	0
																					FY 18	FY 19
		FY 00	FY 01	FY 02	FY 03	FY 04	FY 05	FY 06	FY 07	FY 08	FY 09	FY 10	FY 11	FY 12	FY 13	FY 14	FY 15	FY 16	FY 17	FY 18	First	First
																						Half	Half
Europe		11,435	9,754	10,893	11,978	12,000	16,292	19,170	25,566	29,630	19,196	12,739	11,643	12,510	16,844	20,211	22,844	20,701	16,849	19,122	9,528	8,627
North America	2,671	2,739	2,755	3,402	4,547	9,798	12,324	18,342	20,145	15,301	6,616	13,938	20,406	27,782	36,836	39,127	25,438	29,428	40,412	14,973	21,043
Caribbean, Central and	948	586	287	457	866	1,721	2,420	2,542	2,722	887	1,691	3,012	2,201	2,449	3,475	826	1,513	1,014	1,445	582	1,317
South America
Asia		4,225	4,368	5,362	5,185	4,888	4,749	7,861	12,069	10,954	9,680	6,603	9,190	10,982	16,923	16,383	17,083	13,694	12,089	13,775	6,183	6,729
Middle East		2,142	3,098	3,602	5,663	7,347	8,507	11,708	13,878	15,836	5,948	6,686	7,432	10,090	18,167	17,052	17,680	10,375	9,699	6,156	2,556	3,064
Other		956	1,524	2,066	3,696	4,634	5,790	7,409	9,158	10,063	5,177	3,939	7,654	9,970	13,320	9,576	6,881	5,683	7,069	10,469	4,041	5,377
Total		22,379	22,072	24,968	30,384	34,285	46,859	60,894	81,557	89,354	56,191	38,277	52,872	66,160	95,487	103,535	104,444	77,406	76,152	91,381	37,864	46,159
Outside Japan Sales Ratio	23.8%	25.0% 30.1% 31.4% 33.7% 38.8%	42.1%	46.8%	54.9%	53.9%	42.6%	46.3%	49.1%	52.5%	50.7%	49.9%	43.1%	43.8%	48.5%	46.0%	46.0%
Exchange rate (USD)	107.83	121.54	125.35	115.99	108.24	110.21	116.38	117.84	103.46	93.57	87.81	79.84	79.82	97.65	105.85	121.05	108.84	112.19	110.43	108.68	110.05
Exchange rate (EUR)	99.63	108.8	118.41	131.03	134.47	136.92	146.14	161.24	152.44	130.2	116.39	111.12	102.63	129.68	140.42	134.31	120.33	126.67	130.42	131.64	124.32
Notes	• Other markets comprise Oceania, Africa, and the CIS.

• The exchange rates indicated above are average rates over each period. (Since the fiscal year of subsidiaries outside Japan ends in December, full-year rates are averages for January-December; interim rates are averages for January-June.)
• Euro figures for FY 2001 and earlier have been converted from Deutsche Mark.

4

								(Unit: millions of yen)
	FY 2018	FY 2019
	forecast	Tadano	Demag	Percent
			(Existing business)	change
	Amount	Percentage	Amount	Percentage	Amount	Percentage	Amount	Percentage
Net sales	188,451	100.0%	228,000	100.0%	200,700	100.0%	27,300	100.0%	21.0%
Operating income	15,835	8.4%	10,000	4.4%	14,500	7.2%	-4,500	-16.5%	-36.8%
Ordinary income	15,604	8.3%	10,000	4.4%					-35.9%
Net income attributable	11,462	6.1%	5,000	2.2%					-56.4%
to owners of the parent

FY 2019 business performance forecast was revised on October 30.

	Mid-year	¥13.00	Mid-year	¥14.00	[ FY2019 Management Policy ]
Dividends per share	Year-end	¥13.00	Year-end	¥14.00	(i)	Pursue the Tadano Group's Core Values
	Full-year	¥26.00	Full-year	¥28.00		(Safety, Quality, Efficiency)
	(ii)	Engage in last-year activities of the Mid-Term
Mid-year and year-end dividends for FY19 include ¥1 memorial dividend.	Management Plan (17-19)
Capital investment	¥14,458 million	¥11,500 million	(iii)	Focus on the Tadano Red Arrow, and engaging
						in Tadano Yellow Arrow activities
Depreciation	¥2,984 million	¥3,800 million
(iv)	Prepare for and respond to Tadano Blue Arrow
Exchange rate (USD)		¥110.43	¥108.00(2nd Half)
		changes and escalating competition
Exchange rate (EUR)		¥130.42	¥120.00(2nd Half)	◆ FY 2019 proportion of sales
Figures for capital investment include leased assets.
The interim exchange rate of EUR was revised on October 30.		outside Japan: 55.5%

FY 2019 Forecast (Net Sales by Product)

							(Unit: millions of yen)
(Millions of yen)	Mobile Cranes			FY 2019			Increase /
Truck Loader Cranes		FY 2018	Tadano
250,000	Aerial Work Platforms		Forecast	Demag	Decrease
		（ Existing business）
Other
	228,000		Amount Percentage	Amount Percentage Amount Percentage	Amount Percentage	Amount Percentage

		37,000		Mobile	117,556	62.4%	153,100	67.1%		131,150	65.3%	21,950	80.4%	35,544	30.2%
200,000			Cranes
188,451
16,900	Truck Loader	20,667	11.0%	21,000	9.2%		21,000	10.5%	0	-	333	1.6%
	31,907		Cranes
	21,000
	Aerial Work	18,320	9.7%	16,900	7.4%		16,900	8.4%	0	-	-1,420	-7.8%
150,000	18,320			Platforms
	20,667			Other	31,907	16.9%	37,000	16.2%		31,650	15.8%	5,350	19.6%	5,093	16.0%
100,000				Total	188,451	100%	228,000	100%		200,700	100%	27,300	100%	39,549	21.0%
		153,100	◆Outside Japan sales ratio :	48.5% → 55.5%
50,000	117,556		Breakdown of Mobile Crane Sales Inside and Outside Japan
				Japan		42,250		48,400			48,300		100	6,150	14.6%
0			Outside Japan		75,306	104,700			82,850		21,850	29,394	39.0%
FY 2018	FY 2019	FY 2019 business performance forecast was revised on October 30.

Forecast

6

(Millions of yen)

150,000	Europe
North America
	Caribbean, Central and South America
	Asia	126,500
	Middle East
	Other
		27,800
100,000	91,381
	19,122
		57,200
50,000	40,412
		1,700
	1,445	13,700
	13,775	12,400
	6,156
	13,700
0	10,469
FY 2018	FY 2019
		Forecast

(Unit: millions of yen)

	FY 2018	FY 2019						Increase /
	Tadano
	Forecast	Demag		Decrease
			(Existing business)
	Amount	Percentage	Amount	Percentage	Amount	Percentage	Amount	Percentage		Amount	Percentage
Europe	19,122	10.1%	27,800	12.2%	19,400	9.7%	8,400	30.8%	8,678	45.4%
North	40,412	21.4%	57,200	25.2%	46,600	23.2%	10,600	38.9%	16,788	41.5%
America
Caribbean,	1,445	0.8%	1,700	0.7%	1,600	0.8%	100	0.4%	255	17.6%
Central and
South America
Asia	13,775	7.3%	13,700	6.0%	12,500	6.2%	1,200	4.4%	-75	-0.5%
Middle East	6,156	3.3%	12,400	5.4%	6,600	3.3%	5,800	21.2%	6,244	101.4%
Other	10,469	5.6%	13,700	6.0%	12,650	6.3%	1,050	3.8%	3,231	30.9%
Subtotal	91,381	48.5%	126,500	55.5%	99,350	49.5%	27,150	99.5%	35,119	38.4%
(total outside
Japan sales)
Japan	97,069	51.5%	101,500	44.5%	101,350	50.5%	150	0.5%	4,431	4.6%
Total	188,451	100%	228,000	100%	200,700	100%	27,300	100%	39,549	21.0%

FY 2019 business performance forecast was revised on October 30. The graph on the left excludes Japan.

"Other" is comprised of Oceania, Africa and the CIS.