TADANO : Consolidated Financial Results (Comprehensive) For First Quarter of FY 2017

Consolidated Financial Results (Comprehensive)

For First Quarter of FY 2017

(April 1, 2017 through June 30, 2017)

Notes:

1. Tadano Ltd. provides this comprehensive financial results report in order to supplement the previously released quantitative report with qualitative information concerning business results for the period under review. Unless otherwise stated, no amendments have been made to the quantitative information herein.

2. Forward-looking statements 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.

August 2, 2017

1

Tadano Ltd.

Income Statement (vs. Previous Year)

1Q FY2016		1Q FY2017		Increase/ Decrease
Amount	Percentage	Amount	Percentage
Net sales	41,987	100.0%	35,231	100.0%	-6,755
Cost of sales	28,786	68.6%	25,055	71.1%	-3,731
Gross profit on installment sales	35	0.1%	35	0.1%	-0
Gross profit	13,236	31.5%	10,211	29.0%	-3,024
Selling, general, and administrative expenses	7,448	17.7%	7,428	21.1%	-19
Operating income	5,788	13.8%	2,783	7.9%	-3,005
Non-operating income and loss	-117	-0.3%	-45	-0.1%	72
Ordinary income	5,670	13.5%	2,737	7.8%	-2,933
Extraordinary income and loss	-55	-0.1%	-14	-0.1%	41
Income before income taxes	5,615	13.4%	2,723	7.7%	-2,891
Corporate taxes	1,594	3.8%	722	2.1%	-871
Net income attributable to noncontrolling interests	19	0.0%	13	0.0%	-5
Net income attributable to Tadano Ltd.	4,001	9.5%	1,986	5.6%	-2,014

(Unit: millions of yen)

[ Key changes of this quarter (April-June) ] Sales and profits decreased for the second consecutive year

• Net sales:

  • Consolidated net sales decreased by 16.1% compared with the previous 1Q.

  • Outside Japan sales ratio was 47.6%.

• COGS ratio:

  • Decreased sales and foreign exchange effects drove up the COGS ratio to 71.1%, by 2.5% points from the previous 1Q.

• Selling, general and administrative expenses:

  • SGA decreased by ¥19 million compared with the previous 1Q.

• Profits:

  • Operating income decreased by ¥3 billion compared with the previous 1Q.

  • Ordinary income decreased by ¥2.9 billion compared with the previous 1Q.

  • Net income attributable to Tadano Ltd. decreased by ¥2 billion compared with the previous 1Q.

• Factors for change in operating income:

  ⇒ Sales Volume Effect - ¥2.5 billion

  ⇒ Sales Price Effect +¥0.1 billion

  ⇒ Foreign Exchange Effect - ¥0.1 billion

  ⇒ Cost Change Effect +¥0.1 billion

  ⇒ Other Effects - ¥0.6 billion

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  1

  Balance Sheet (vs. End of Previous Fiscal Year)

  （ Unit：millions of yen）

  FY2016 Year-End		1Q FY2017		Increase/ Decrease
  Amount	Percentage	Amount	Percentage
  Cash deposit	68,745	29.9%	72,133	31.3%	3,388
  Accounts receivable	48,717	21.2%	39,894	17.3%	-8,822
  Inventories	54,877	23.9%	60,903	26.5%	6,026
  Other current assets	5,624	2.4%	5,169	2.2%	-454
  Total current assets	177,965	77.4%	178,101	77.3%	136
  Tangible fixed assets	41,183	18.0%	41,152	17.9%	-31
  Intangible fixed assets	1,181	0.5%	1,142	0.5%	-39
  Investment and other assets	9,469	4.1%	9,866	4.3%	396
  Total fixed assets	51,834	22.6%	52,160	22.7%	325
  Total assets	229,799	100.0%	230,262	100.0%	462

  [Key changes]
  • Accounts receivable decreased: ¥ 48.7billion  ¥ 39.8 billion

     The receivable turnover period increased

    (1Q FY2016: 98.6 days, FY2016: 99.0 days

     1Q FY2017: 103.0 days)

  • Inventories increased: ¥ 54.8 billion  ¥ 60.9 billion (The ¥60.9 billion includes ¥17.5 billion in TADANO FAUN GmbH)

     The inventory turnover period increased. (1Q FY2016: 134.7 days, FY2016: 111.5 days

    Accounts payable	26,080	11.3%	31,692	13.8%	5,611
    Interest-bearing debt	37,235	16.3%	36,368	15.8%	-867
    Other liabilities	23,934	10.4%	19,845	8.6%	-4,089
    Total liabilities	87,250	38.0%	87,905	38.2%	654
    Total equity	142,549	62.0%	142,357	61.8%	-192
    Total liabilities and equity	229,799	100.0%	230,262	100.0%	462

     1Q FY2017: 157.3 days)

  • Interest-bearing debt decreased:

¥ 37.2 billion  ¥ 36.3 billion

 Short-term: decreased by ¥0.9 billion; Long-term: increased by ¥0.0 billion

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2

Net Sales by PPrroodduucctt

(Millions of yen)

50,000

Mobile Cranes

Truck Loader Cranes Aerial Work Platforms

1Q FY2016 1Q FY2017

(Unit: millions of yen) Increase / Decrease

Other Amount Percentage Amount Percentage Amount Percentage

41,987	Mobile Cranes 27,014	64.4%	18,996	54.0%	-8,018	-29.7%
6,289 3	Truck Loader 4,259 Cranes 5,231	10.1%	4,589	13.0%	330	7.8%
4,423	Aerial Work 4,423 6,885 Platforms	10.5%	4,759	13.5%	336	7.6%
4,259	Other 6,289	15.0%	6,885	19.5%	595	9.5%
4,759 Total 41,987	100%	35,231	100%	-6,755	-16.1%
4,589 Breakdown of Mobile Crane Sales Inside and Outside Japan
Japan	7,622	5,626	-1,996	-26.2%
27,014	Outside Japan	19,392	13,369	-6,022	-31.1%
18,996 Exchange Rate (January-March Average Rate)

40,000

30,000

20,000

10,000

USD EUR

115.48 113.64 127.23 121.08

0

1Q FY2016 1Q FY2017

Since the fiscal year for subsidiaries outside Japan ends in December, the rates given here are January-March average.

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Net Sales by Destination

(Millions of yen)

30,000

Europe

North America

Caribbean, Central and South America Asia

1Q FY2016 1Q FY2017

(Unit: millions of yen) Increase / Decrease

20,000

Middle East

Other

22,184

Amount Percentage Amount Percentage Amount Percentage

Europe 5,614 13.4% 3,060 8.7% -2,554 -45.5%

North America 7,756 18.5% 6,764 19.2% -991 -12.8%

5,614

16,767

Caribbean, Central

and South America

544 1.3% 169 0.5% -375 -68.9%

Asia	4,330	10.3%	2,814	8.0%	-1,515	-35.0%
Middle East	2,711	6.4%	2,738	7.8%	26	1.0%
Other	1,227	2.9%	1,219	3.4%	-7	-0.6%

3,060

7,756

10,000

544

2,814
2,711	2,738
1,227 1Q FY2016	1,219 1Q FY2017

4,330

6,764

169

Japan	19,802	47.2%	18,464	52.4%	-1,338	-6.8%
Total	41,987	100%	35,231	100%	-6,756	-16.1%

Subtotal (total outside Japan sales)

22,184 52.8% 16,767 47.6% -5,417 -24.4%

The graph on the left excludes Japan.

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

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FY2017 First Half Forecast (Net Sales by Product)

(Millions of yen)

100,000

90,914

Mobile Cranes

Truck Loader Cranes Aerial Work Platforms Other

FY2016

First Half

FY2017

First Half Forecast

(Unit: millions of yen) Increase / Decrease

80,000

60,000

13,178

10,831

9,534

83,200

14,100

11,600

9,900

Mobile Cranes

Truck Loader Cranes

Aerial Work Platforms

Other

Amount Percentage Amount Percentage Amount Percentage

40,000

57,369	63.1%	47,600	57.2%	-9,769	-17.0%
9,534	10.5%	9,900	11.9%	365	3.8%
10,831	11.9%	11,600	13.9%	768	7.1%
13,178	14.5%	14,100	17.0%	921	7.0%
90,914	100%	83,200	100%	-7,714	-8.5%

Total

57,369

Breakdown of Mobile Crane Sales Inside and Outside Japan

20,000

47,600

Japan

Outside Japan

22,429 19,500 34,939 28,100 -2,929 -13.1% -6,839 -19.6%

No changes from the forecast released on April 28, 2017.

0

FY2016

First Half

FY2017

First Half Forecast

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FY2017 First Half FFoorreeccaasstt (Net Sales by DDeessttiinnaattiioonn))

(Millions of yen)

50,000

Europe

North America

Caribbean, Central and South America Asia

Middle East

FY2016

First Half

FY2017

First Half Forecast

(Unit: millions of yen) Increase / Decrease

40,000

Other Amount Percentage Amount Percentage Amount Percentage

Europe	12,141	13.3%	7,600	9.1%	-4,541	-37.4%
North America	12,788	14.1%	12,500	15.0%	-288	-2.3%

41,158

30,000

12,141

35,400

7,600

Caribbean, Central 878 1.0% 600 0.7% -278 -31.7%

and South America

20,000

Asia	7,811	8.6%	5,800	7.0%	-2,011	-25.8%
Middle East	4,900	5.4%	6,100	7.3%	1,199	24.5%
Other	2,636	2.9%	2,800	3.4%	163	6.2%

12,788 12,500

10,000

878 600

7,8115,800

Subtotal (total outside Japan sales)

41,158 45.3% 35,400 42.5% -5,758 -14.0%

4,9006,100

2,636 2,800

0

Japan 49,755 54.7 47,800 57.5 -1,955 -3.9%

Total 90,914 100% 83,200 100% -7,714 -8.5%

No changes from the forecast released on April 28, 2017.

FY2016

First Half

FY2017

First Half Forecast

The graph on the left excludes Japan.

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

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