TADANO : Consolidated Financial Results (Quantitative) For Second Quarter of FY 2018

Consolidated Financial Results (Quantitative) For Second Quarter of FY 2018

(April 1, 2018 through September 30, 2018)

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-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.

October 30, 2018

（ Unit: millions of yen）

FY 2017 First Half		FY 2018 First Half		Increase/ Decrease
Am ount	Pe r ce ntage	Am ount	Pe r ce ntage
Net sales	82,880	100.0%	82,272	100.0%	-607
Cost of sales	59,120	71.3%	60,382	73.4%	1,261
Gross profit on installment sales	27	0.0%	121	0.1%	93
Gross profit	23,786	28.7%	22,011	26.8%	-1,775
Selling, general, and administrative expenses	15,238	18.4%	16,267	19.8%	1,029
Operating income	8,548	10.3%	5,743	7.0%	-2,804
Non-operating income and loss	-161	-0.2%	-70	-0.1%	91
Ordinary income	8,386	10.1%	5,673	6.9%	-2,713
Extraordinary income and loss	4	0.0%	-3	-0.0%	-8
Income before income taxes	8,391	10.1%	5,669	6.9%	-2,721
Corporate taxes	2,400	2.9%	1,569	1.9%	-831
Net income attributable to noncontrolling interests	21	0.0%	19	0.0%	-1
Net income attributable to owners of the parent	5,969	7.2%	4,081	5.0%	-1,888

（ Unit: millions of yen）

FY 2017 Year-End		FY 2018 First Half		Increase/ Decrease
Am ount	Pe r ce ntage	Am ount	Pe r ce ntage
Cash deposits	86,854	35.4%	78,680	31.5%	-8,173
Accounts receivable	45,501	18.6%	39,215	15.7%	-6,286
Inventories	54,552	22.2%	62,480	25.0%	7,928
Other current assets	1,779	0.7%	3,700	1.5%	1,920
Total current assets	188,687	76.9%	184,076	73.7%	-4,611
Tangible fixed assets	41,747	17.0%	46,499	18.6%	4,752
Intangible fixed assets	1,187	0.5%	1,499	0.6%	312
Investment and other assets	13,879	5.6%	17,698	7.1%	3,819
Total fixed assets	56,814	23.1%	65,697	26.3%	8,883
Total assets	245,501	100.0%	249,774	100.0%	4,272

Accounts payable	36,727	15.0%	38,663	15.5%	1,936
Interest-bearing debt	33,750	13.7%	35,842	14.4%	2,091
Other liabilities	24,978	10.2%	24,289	9.7%	-689
Total liabilities	95,457	38.9%	98,795	39.6%	3,337
Total equity	150,044	61.1%	150,979	60.4%	934
Total liabilities and e quity	245,501	100.0%	249,774	100.0%	4,272

Net Sales by Product

Mobile Cranes

Truck Loader Cranes

Aerial Work Platforms

(Millions of yen)

Other

100,000

82,880

82,272

80,000 15,008 12,117 10,074

60,000

14,943 9,208 9,605

40,000

◆Outside Japan sales ratio

42.2% → 46.0%

20,000

45,679

48,515

Breakdown of Mobile Crane sales Inside and Outside Japan

0

FY 2017 First Half FY 2018 First Half

4

FY 2017 First Half		FY 2018 First Half		Increase / Decrease
Am ount	Percentage	Am ount	Percentage	Am ount	Percentage
Mobile Cranes	45,679	55.2%	48,515	59.0%	2,836	6.2%
Truck Loader Cranes	10,074	12.2%	9,605	11.7%	-469	-4.7%
Aerial Work Platforms	12,117	14.5%	9,208	11.2%	-2,909	-24.0%
Other	15,008	18.1%	14,943	18.1%	-65	-0.4%
Total	82,880	100%	82,272	100%	-607	-0.7%

Japan	18,160	17,915	-244	-1.3%
Outside Japan	27,519	30,600	3,080	11.2%

(Millions of yen)

120,000

Sales grew 8.2% compared to the same quarter of the previous fiscal year. Sales grew 23.8% in Europe, 20.7% in North America and 8.6% in Asia, but fell 58.1% in Middle East.

100,000

80,000

60,000

40,000

20,000

0

Europe

North America

Caribbean, Central and

South AmericaAsia

Middle East

Other

Total

Outside Japan Sales Ratio Exchange rate (USD) Exchange rate (EUR)

11,435 2,671 948 4,225 2,142 956 22,379 23.8%

9,754 2,739 586 4,368 3,098 1,524 22,072 25.0%

10,893 2,755 287 5,362 3,602 2,066 24,968 30.1%

11,978 3,402 457 5,185 5,663 3,696 30,384 31.4%

12,000 4,547 866 4,888 7,347 4,634 34,285 33.7%

16,292 9,798 1,721 4,749 8,507 5,790 46,859 38.8%

19,170 12,324 2,420 7,861 11,708 7,409 60,894 42.1%

25,566 18,342 2,542 12,069 13,878 9,158 81,557 46.8%

29,630 20,145 2,722 10,954 15,836 10,063 89,354 54.9%

19,196 15,301 887 9,680 5,948 5,177 56,191 53.9%

12,739 6,616 1,691 6,603 6,686 3,939 38,277 42.6%

107.83 121.54 125.35 115.99 108.24 110.21 116.38 117.84 103.46 93.57

9,528 14,973 582 6,183 2,556 4,041 37,864 46.0% 87.81 79.84 79.82 97.65 105.85 121.05 108.84 112.19 112.37 108.68

11,643 13,938 3,012 9,190 7,432 7,654 52,872 46.3%

12,510 20,406 2,201 10,982 10,090 9,970 66,160 49.1%

16,844 27,782 2,449 16,923 18,167 13,320 95,487 52.5%

20,211 36,836 3,475 16,383 17,052 9,576

22,844 39,127 826 17,083 17,680 6,881

20,701 25,438 1,513 13,694 10,375 5,683

16,849 29,428 1,014 12,089 9,699 7,069

7,694 12,404 445 5,694 6,095 2,650

103,535104,444

77,406

76,152

34,984

50.7%

49.9%

43.1%

43.8%

42.2%

99.63 108.8 118.41 131.03 134.47 136.92 146.14 161.24 152.44

130.2 116.39 111.12 102.63 129.68 140.42 134.31 120.33 126.67 121.64 131.64

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 management policies ]

• (i) Pursue the Tadano Group's Core Values (Safety, Quality, Efficiency)

• (ii) Engage in second-year activities of the Mid-Term Management Plan (17-19)

• (iii) Focus on the Tadano Red Arrow, and engaging in Tadano Yellow Arrow activities

(iv)Prepare for and respond to Tadano Blue Arrow changes and escalating competition

[ Nine Strategies of the Mid-Term

Management Plan (17- 19) ]

FY 2018 business performance forecast was revised on October 30.

• (i) Improve Market Position

• (ii) Enhance Product Competitiveness

• (iii) Pursue Global & Flexible MONOZUKURI

• (iv) Provide Outstanding Quality & Service

  No chages from the forecast released on April 27.

• (v) Improve Product Life-Cycle Value

• (vi) Develop Solution Business

• (vii) Raise Level of Profitability and Asset Efficiency

(viii)Establish Growth Structure

(ix) Strengthen the Tadano Group & Global

Figures for capital investment include leased assets.

Management Structure

The interim exchange rates were revised on October 30.

◆ FY 2018 proportion of sales outside Japan: 49.6%

FY 2017		FY 2018 forecast		Percent change
Am ount	Pe r ce ntage	Am ount	Pe r ce ntage
Net sales	173,703	100.0%	185,000	100.0%	6.5%
Operating income	15,511	8.9%	15,800	8.5%	1.9%
Ordinary income	14,907	8.6%	15,500	8.4%	4.0%
Net income attributable to owners of the parent	9,391	5.4%	10,500	5.7%	11.8%

Dividends per share	Mid-year ¥13.00 Year-end ¥13.00	Mid-year ¥13.00 Year-end ¥13.00
	Full-year ¥26.00	Full-year ¥26.00

Capital investment	¥2,838 million	¥17,500 million
Depreciation	¥2,864 million	¥3,000 million
Exchange rate (USD)	¥112.19	¥110.00(2nd Half)
Exchange rate (EUR)	¥126.67	¥128.00(2nd Half)

FY 2018 Forecast (Net Sales by Destination)

(Millions of yen)

80,000

Europe

40,000

0

FY 2017		FY 2018 Forecast		Increase / Decrease
Amount	Percentage	Amount	Percentage	Amount	Percentage
Europe	16,849	9.7%	20,000	10.8%	3,151	18.7%
North America	29,428	16.9%	38,300	20.7%	8,872	30.1%
Caribbean,Central and South America	1,014	0.6%	1,700	0.9%	686	67.7%
Asia	12,089	7.0%	13,300	7.2%	1,211	10.0%
Middle East	9,699	5.6%	7,200	3.9%	-2,499	-25.8%
Other	7,069	4.1%	11,200	6.1%	4,131	58.4%
Subtotal (total outside Japan sales)	76,152	43.8%	91,700	49.6%	15,548	20.4%
Japan	97,551	56.2%	93,300	50.4%	-4,251	-4.4%
Total	173,703	100%	185,000	100%	11,297	6.5%

FY 2018 business performance forecast was revised on October 30.

The graph on the left excludes Japan.

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