Daiken Medical : (Delayed)Summary of Non-Consolidated Financial Results for the Three Months Ended June 30, 2020

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Non-Consolidated Financial Results

for the Three Months Ended June 30, 2020

(Based on Japanese GAAP)

				July 31, 2020
Company name:	DAIKEN MEDICAL CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	7775	URL http://www.daiken-iki.co.jp
Representative:	President		Keiichi Yamada
Inquiries:	General Manager, Business Control Division	Kenji Tamamaki	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 3, 2020
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Non-consolidated financial results for the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)

(1) Non-consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%
Three months ended June 30, 2020	1,790	(13.0)		191	(38.4)		191		(41.2)		136		(41.4)
Three months ended June 30, 2019	2,057		(1.6)		310	(11.4)		325		(7.2)		232		(8.9)
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended June 30, 2020			4.75					-
Three months ended June 30, 2019			8.11					-
(2) Non-consolidated financial position
	Total assets				Net assets		Equity ratio
	Millions of yen			Millions of yen				%
As of June 30, 2020		10,890					5,902				54.2
As of March 31, 2020		10,997					6,081				55.3
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen			Yen			Yen
Year ended March 31, 2020		-			9.00			-			11.00			20.00
Year ending March 31, 2021		-
Year ending March 31, 2021 (Forecast)					9.00			-			11.00			20.00

3. Forecast of non-consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit		Earnings per share
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
3,970	(6.6)	520	(8.0)	560		(3.4)	400	(3.4)	13.92
September 30, 2020
Full year	8,400	(1.4)	1,160	(2.9)	1,200		(0.8)	860	0.1	29.94

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4. Notes

1. Application of special accounting methods for preparing quarterly non-consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2020	31,840,000	shares	As of March 31, 2020	31,840,000	shares
Number of treasury shares at the end of the period
	As of June 30, 2020	3,111,559	shares	As of March 31, 2020	3,111,559	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2020	28,728,441	shares	Three months ended June 30, 2019	28,728,441	shares

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Quarterly non-consolidated financial statements

Non-consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2020	As of June 30, 2020
Assets
Current assets
Cash and deposits	2,365,400	2,318,167
Notes and accounts receivable - trade	1,904,574	1,571,149
Electronically recorded monetary claims - operating	821,808	818,660
Finished goods	770,451	1,011,402
Work in process	67,009	61,340
Raw materials	335,991	371,874
Other	139,276	136,610
Allowance for doubtful accounts	(92)	(92)
Total current assets	6,404,420	6,289,111
Non-current assets
Property, plant and equipment
Buildings, net	2,104,782	2,082,189
Land	1,703,670	1,703,670
Other, net	492,475	523,102
Total property, plant and equipment	4,300,929	4,308,963
Intangible assets	29,313	29,372
Investments and other assets
Deferred tax assets	194,818	194,818
Other	92,916	92,423
Allowance for doubtful accounts	(24,650)	(24,650)
Total investments and other assets	263,083	262,590
Total non-current assets	4,593,325	4,600,926
Total assets		10,997,746	10,890,037

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			(Thousands of yen)
		As of March 31, 2020	As of June 30, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade	1,061,873	1,107,145
Short-term borrowings	800,000	1,200,000
Current portion of long-term borrowings	898,032	877,796
Income taxes payable	180,854	66,160
Accrued expenses	445,687	486,994
Other	396,226	278,893
Total current liabilities	3,782,673	4,016,990
Non-current liabilities
Long-term borrowings	1,091,892	922,443
Other	41,568	48,443
Total non-current liabilities	1,133,460	970,886
Total liabilities	4,916,133	4,987,877
Net assets
Shareholders' equity
Share capital	495,875	495,875
Capital surplus	400,875	400,875
Retained earnings	7,011,444	6,831,992
Treasury shares	(1,826,582)	(1,826,582)
Total shareholders' equity	6,081,612	5,902,160
Total net assets	6,081,612	5,902,160
Total liabilities and net assets		10,997,746	10,890,037

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Non-consolidated statements of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		June 30, 2019	June 30, 2020
Net sales	2,057,730	1,790,803
Cost of sales	1,090,920	981,733
Gross profit	966,809	809,070
Selling, general and administrative expenses	656,748	617,979
Operating profit	310,061	191,090
Non-operating income
Gain on forfeiture of unclaimed dividends	435	814
Compensation income	568	-
Subsidy income	15,581	-
Other	372	532
Total non-operating income	16,957	1,347
Non-operating expenses
Interest expenses	1,210	955
Other	171	106
Total non-operating expenses	1,381	1,061
Ordinary profit	325,637	191,376
Extraordinary losses
Loss on retirement of non-current assets	0	145
Total extraordinary losses	0	145
Profit before income taxes	325,637	191,230
Income taxes	92,644	54,670
Profit		232,993	136,560

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