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

Consolidated Financial Results (Comprehensive) For Third Quarter of FY 2017

(Cumulative Term April 1, 2017 through December 31, 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.

February 6, 2018

Income Statement （vs. Previous Year）

（ Unit: millions of yen） 3Q FY2016 3Q FY2017 Increase/ Decrease [ Key changes of this quarter (April-December) ] Sales and profits decreased for the second consecutive year ◆ Net sales: AmountPercentageAmountPercentage  Consolidated net sales decreased by 6.3% compared with the previous 3Q. Net Sales 128,020 100.0% 119,960 100.0% -8,059  Outside Japan sales ratio was 44.9%. ◆ COGS ratio: Cost of Sales 90,751 70.9% 85,844 71.6% -4,907 Gross proft on installment sales 151 0.1% 39 0.0% Gross profit Selling, general, and administrative expenses 37,420 23,244 29.2% 18.2% 34,155 23,318 28.5% 19.4% -111 -3,264  The COGS ratio went down by 0.7% from the same period of the previous fiscal year due to changes in the composition of sold cranes.  The COGS ratio was 71.6%. ◆ Selling, general and administrative expenses: 74  SGA increased by ¥74 million compared with the previous 3Q. Operating income 14,175 11.1% 10,836 9.0% -3,339 ◆ Profits: Non-operating income and loss 46 0.0% -113 -0.1% -159  Operating income decreased by ¥3.3 billion compared with the previous 3Q. Ordinary income 14,221 11.1% 10,722 8.9% -3,498  Ordinary income decreased by ¥3.4 billion compared with the previous 3Q. Extraordinary income and loss -11 Income before income taxes 14,209 -0.0% 11.1% -1 10,721 -0.0% 8.9% 10 -3,488  Net income attributable to Tadano Ltd. decreased by ¥2.9 billion compared with the previous 3Q. ◆ Factors for change in operating income: Corporate taxes 4,137 Net income attributable to noncontrolling interests Net income attributable to Tadano Ltd. 60 3.2% 0.0% 3,644 27 3.0% 0.0% -492 -33 ⇒ Sales Volume Effect -¥3.8 billion ⇒ Sales Price Effect +¥0.4 billion ⇒ Foreign Exchange Effect +¥0.3 billion 10,012 7.8% 7,049 5.9% -2,962 ⇒ Cost Change Effect ⇒ Other Effects +¥0.5 billion - ¥0.7 billion 1 2

Balance Sheet （vs. End of Previous Fiscal Year）

（ Unit: millions of yen） FY2016 Year-End 3Q FY2017 [Key changes] Increase/ Decrease AmountPercentageAmountPercentage Cash deposit Accounts receivable Inventories 68,745 48,717 54,877 29.9% 21.2% 23.9% 80,573 37,249 62,778 33.8% 15.6% 26.3% 11,828 ◆ Accounts receivable decreased: ¥48.7 billion → ¥37.2 billion ⇒ The receivable turnover period ameliorated. (3Q FY2016: 85.6 days, FY2016: 99.0 days -11,468 →3Q FY2017: 85.4 days) 7,900 Other current assets Total current assets 5,624 177,965 2.4% 77.4% 5,407 186,008 2.3% 78.0% -217 ◆ Inventories increased: ¥54.8 billion → ¥62.7 billion 8,043 Tangible fixed assets Intangible fixed assets Investment and other assets 41,183 1,181 9,469 18.0% 0.5% 4.1% 41,195 1,201 10,019 17.3% 0.5% 4.2% 11 (The ¥62.7 billion includes ¥17.8 billion in TFG.) ⇒ The inventory turnover period deteriorated. 19 (3Q FY2016: 138.1 days, FY2016: 111.5 days 549 →3Q FY2017: 143.9 days) Total fixed assets 51,834 22.6% 52,416 22.0% 581 Total assets 229,799 100.0% 238,424 100.0% 8,624 ◆ Interest-bearing debt decreased: ¥37.2 billion → ¥35.8 billion ⇒ Short-term: increased by ¥4.9 billion Accounts payable 26,080 11.3% 32,984 13.8% 6,903 Long-term: decreased by ¥6.3 billion Interest-bearing debt 37,235 16.3% 35,870 15.1% -1,364 Other liabilities 23,934 10.4% 21,760 9.1% -2,173 Total liabilities 87,250 38.0% 90,616 38.0% 3,366 Total equity 142,549 62.0% 147,808 62.0% 5,258 Total liabilities and equity 229,799 100.0% 238,424 100.0% 8,624 2 3

Net Sales by Product

(Unit: millions of yen)

(Millions of yen)

150,000

Mobile Cranes

Truck Loader Cranes

120,000

90,000

60,000

30,000

0

3Q FY2016		3Q FY2017		Increase / Decrease
Amount	Percentage	Amount	Percentage	Amount	Percentage
Mobile Cranes	78,762	61.5%	65,089	54.4%	-13,672	-17.4%
Truck Loader Cranes	14,056	11.0%	14,446	12.0%	389	2.8%
Aerial Work Platforms	15,309	12.0%	17,219	14.3%	1,909	12.5%
Other	19,891	15.5%	23,205	19.3%	3,313	16.7%
Total	128,020	100%	119,960	100%	-8,059	-6.3%

Breakdown of Mobile Crane sales Inside and Outside Japan

Japan	28,163	23,085	-5,078	-18.0%
Outside Japan	50,599	42,004	-8,594	-17.0%

Exchange Rate (January-September Average Rate)

USD	108.69	111.92
EUR	121.17	124.55

3Q FY2016

3Q FY2017

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

FY2017 Forecast (Net Sales by Product)

(Unit: millions of yen)

Mobile Cranes

Truck Loader Cranes

(Millions of yen)

200,000

Aerial Work Platforms

Other

150,000

100,000

50,000

0

FY2016

FY2017 Forecast

FY2016		FY2017 Forecast		Increase / Decrease
Amount	Percentage	Amount	Percentage	Amount	Percentage
Mobile Cranes	109,627	61.0%	101,200	57.8%	-8,427	-7.7%
Truck Loader Cranes	19,633	10.9%	19,300	11.0%	-333	-1.7%
Aerial Work Platforms	23,202	12.9%	24,100	13.8%	898	3.9%
Other	27,213	15.2%	30,400	17.4%	3,187	11.7%
Total	179,676	100%	175,000	100%	-4,676	-2.6%

◆Breakdown of Mobile Crane sales Inside and Outside Japan

Japan	45,017	39,100	-5,917	-13.1%
Outside Japan	64,609	62,100	-2,509	-3.9%

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

However, the structuture of net sales by product changed according to the latest situation.

FY2017 Forecast (Net Sales by Destination)

(Unit: millions of yen)

(Millions of yen)

Europe

North America

Caribbean, Central and South AmericaAsia

Middle EastOther

80,000

40,000

The graph on the left excludes Japan.

77,406

78,000

0

FY2016		FY2017 Forecast		Increase / Decrease
Amount	Percentage	Amount	Percentage	Amount	Percentage
Europe	20,701	11.5%	16,800	9.6%	-3,901	-18.8%
North America	25,438	14.2%	29,700	17.0%	4,262	16.8%
Caribbean, Central and South America	1,513	0.8%	900	0.5%	-613	-40.5%
Asia	13,694	7.6%	13,600	7.8%	-94	-0.7%
Middle East	10,375	5.8%	9,800	5.6%	-575	-5.5%
Other	5,683	3.2%	7,200	4.1%	1,517	26.7%
Subtotal (total outside Japan sales)	77,406	43.1%	78,000	44.6%	594	0.8%
Japan	102,270	56.9%	97,000	55.4%	-5,270	-5.2%
Total	179,676	100%	175,000	100%	-4,676	-2.6%

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

However, the structure of net sales by destination changed according to the latest situation.

FY2016

FY2017 Forecast

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