TADANO : Consolidated Financial Results (Comprehensive) For First Quarter of FY 2018

Consolidated Financial Results (Comprehensive) For First Quarter of FY 2018

(April 1, 2018 through June 30, 2018)

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, 2018

Income Statement （vs. Previous Year）

（ Unit: millions of yen） 1Q FY2017 1Q FY2018 Increase/ Decrease [ Key Points for this quarter (April-June) ] Sales and profits decreased for the third consecutive year ◆ Net sales: AmountPercentageAmountPercentage  Consolidated net sales decreased by 1.0% compared with the previous 1Q. Net sales 35,231 100.0% 34,894 100.0% -337  Outside Japan sales ratio was 46.4%. ◆ COGS ratio: Cost of sales 25,055 71.1% 24,736 70.9% -319 Gross profit on installment sales 35 0.1% 77 0.2% Gross profit 10,211 Selling, general, and administrative expenses 7,428 29.0% 21.1% 10,235 7,958 29.3% 22.8% 42 24 529  The COGS ratio improved by 0.2% compared with the previous 1Q.  The COGS ratio was 70.9%. ◆ Selling, general and administrative expenses:  SGA increased by ¥0.5 billion compared with the previous 1Q. ◆ Profits: Operating income 2,783 7.9% 2,277 6.5% -505  Operating income decreased by ¥0.5 billion compared with the previous 1Q. Non-operating income and loss -45 -0.1% -69 -0.2% -24  Ordinary income decreased by ¥0.5 billion compared with the previous 1Q. Ordinary income 2,737 7.8% 2,207 6.3% -529 Extraordinary income and loss -14 Income before income taxes 2,723 -0.1% 7.7% 1 2,208 0.0% 6.3% Corporate taxes 722 Net income attributable to noncontrolling interests Net income attributable to Tadano Ltd. 13 2.1% 0.0% 398 10 1.1% 0.0% 15 -514 -324  Net income attributable to Tadano Ltd. decreased by ¥0.1 billion compared with the previous 1Q. ◆ Factors for change in operating income: ⇒ Sales Volume Effect -¥0.2 billion ⇒ Sales Price Effect +¥0.3 billion -3 ⇒ Foreign Exchange Effect -¥0.2 billion 1,986 5.6% 1,799 5.2% -187 ⇒ Cost Change Effect -¥0.4 billion ⇒ Other Effects -¥0.0 billion 1 3

Balance Sheet （vs. End of Previous Fiscal Year）

（ Unit: millions of yen） [Key changes] FY2017 Year-End 1Q FY2018 Increase/ Decrease AmountPercentageAmountPercentage ◆ Accounts receivable decreased: ¥45.5 billion → ¥35.0 billion Cash deposits 86,854 35.4% 80,619 33.1% -6,234 ⇒ The receivable turnover period ameliorated. Accounts receivable 45,501 18.6% 35,064 14.4% -10,437 (1Q FY2017: 103.0 days, FY2017: 95.6 days Inventories Other current assets 54,552 1,779 22.2% 0.7% 63,387 2,998 26.1% 1.2% 8,835 →1Q FY2018: 91.4 days) 1,218 Total current assets Tangible fixed assets Intangible fixed assets 188,687 41,747 1,187 76.9% 17.0% 0.5% 182,069 42,389 1,511 74.8% 17.4% 0.6% -6,618 ◆ Inventories increased: ¥54.5 billion → ¥63.3 billion 641 (The ¥63.3 billion includes ¥20.8 billion at TFG.) ⇒ The inventory turnover period deteriorated. 324 (1Q FY2017: 157.3 days, FY2017: 114.6 days Investment and other assets Total fixed assets 13,879 56,814 5.6% 23.1% 17,459 61,360 7.2% 25.2% 3,579 →1Q FY2018: 165.3 days) 4,546 Total assets 245,501 100.0% 243,430 100.0% -2,071 Accounts payable Interest-bearing debt 36,727 33,750 15.0% 13.7% 38,798 33,711 15.9% 13.9% 2,071 ◆ Interest-bearing debt remains unchanged: ¥33.7 billion → ¥33.7 billion ⇒ Both short-term and long-term debt remain unchanged. -38 Other liabilities 24,978 10.2% 21,978 9.0% -3,000 Total liabilities Total equity Total liabilities and equity 95,457 150,044 245,501 38.9% 61.1% 100.0% 94,488 148,941 243,430 38.8% 61.2% 100.0% -968 A reclassification has been made for the Balance Sheet, in accordance with Partial Amendments to the Japanese Accounting Standard for Tax Effect Accounting. -1,103 -2,071 2 4

Net Sales by Product

(Millions of yen)

40,000

Mobile Cranes

Truck Loader Cranes

30,000

20,000

10,000

0

1Q FY2017		1Q FY2018		Increase / Decrease
Amount	Percentage	Amount	Percentage	Amount	Percentage
Mobile Cranes	18,996	54.0%	18,924	54.2%	-71	-0.4%
Truck Loader Cranes	4,589	13.0%	4,340	12.4%	-249	-5.4%
Aerial Work Platforms	4,759	13.5%	4,335	12.4%	-423	-8.9%
Other	6,885	19.5%	7,293	21.0%	407	5.9%
Total	35,231	100%	34,894	100%	-337	-1.0%

Breakdown of Mobile Crane Sales Inside and Outside Japan

(Unit: millions of yen)

Japan	5,626	6,296	670	11.9%
Outside Japan	13,369	12,628	-741	-5.5%

Exchange Rate (January-March Average Rate)

USD	113.64	108.30
EUR	121.08	133.22

1Q FY2017

1Q FY2018

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

Net Sales by Destination

(Millions of yen)

20,000

Europe

North AmericaCaribbean, Central and South America

Asia

Middle East

Other

16,767

10,000

1Q FY2017

3,060

6,764

169 2,814

2,738

1,219

0

16,173

1Q FY2018

3,980

5,560

207 3,064

1,559 1,801

1Q FY2017		1Q FY2018		Increase / Decrease
Amount	Percentage	Amount	Percentage	Amount	Percentage
Europe	3,060	8.7%	3,980	11.4%	919	30.1%
North America	6,764	19.2%	5,560	15.9%	-1,204	-17.8%
Caribbean,Central and South America	169	0.5%	207	0.6%	37	22.2%
Asia	2,814	8.0%	3,064	8.8%	250	8.9%
Middle East	2,738	7.8%	1,559	4.5%	-1,179	-43.1%
Other	1,219	3.4%	1,801	5.2%	581	47.7%
Subtotal (total outside Japan sales)	16,767	47.6%	16,173	46.4%	-593	-3.5%
Japan	18,464	52.4%	18,720	53.6%	256	1.4%
Total	35,231	100%	34,894	100%	-337	-1.0%

The graph on the left excludes Japan.

(Unit: millions of yen)

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

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FY2018 Forecast

◆First Half Forecast (Announced on July 31, 2018) (Unit: millions of yen)FY2018 FY2018 FY2017 First Half First Half Forecast First Half Forecast Forecast Change (April 27) (July 31) AmountPercentageAmountPercentageAmountPercentageAmountPercentage Net sales 82,880 100.0% 90,000 100.0% 83,000 100.0% Operating income Ordinary income Net income attributable to Tadano Ltd. 8,548 8,386 5,969 10.3% 10.1% 7.2% 7,000 7,000 4,500 7.8% 7.8% 5.0% 5,500 5,500 4,000 6.6% 6.6% 4.8% -7,000 -1,500 -1,500 -500 -7.8% -21.4% -21.4% -11.1% Reason for forecast revision: Given the performance of our subsidiaries outside of Japan, we have revised our forecast for the first half of FY 2018 (announced on April 27, 2018). ◆Full-Year Forecast (Unchanged) FY2018 FY2017 Forecast (April 27) AmountPercentageAmountPercentage Net sales 173,703 100.0% 192,000 100.0% Operating income Ordinary income 15,511 14,907 Net income attributable to Tadano Ltd. 9,391 8.9% 8.6% 5.4% 17,000 16,500 11,500 8.9% 8.6% 6.0% 5 7

FY2018 First Half Forecast (Net Sales by Product)

(Millions of yen)

100,000

Mobile Cranes

Truck Loader Cranes

Aerial Work Platforms

Other

82,880

80,000

60,000

40,000

20,000

0

FY2017 First Half

83,000

45,679

15,008

10,074

12,117

FY2018 First Half

16,200

8,700 9,300

FY2017 First Half		FY2018 First Half Forecast		Increase / Decrease
Amount	Percentage	Amount	Percentage	Amount	Percentage
Mobile Cranes	45,679	55.2%	48,800	58.8%	3,120	6.8%
Truck Loader Cranes	10,074	12.2%	9,300	11.2%	-774	-7.7%
Aerial Work Platforms	12,117	14.5%	8,700	10.5%	-3,417	-28.2%
Other	15,008	18.1%	16,200	19.5%	1,191	7.9%
Total	82,880	100%	83,000	100%	119	0.1%

Breakdown of Mobile Crane Sales Inside and Outside Japan

(Unit: millions of yen)

48,800

Japan	18,160	17,500	-660	-3.6%
Outside Japan	27,519	31,300	3,780	13.7%

Forecast revised on July 31, 2018.

Forecast

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