Tadano : Consolidated Financial Results (Quantitative) For Third Quarter of FY 2019

Consolidated Financial Results (Quantitative) For Third Quarter of FY 2019

(April 1, 2019 through December 31, 2019)

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-lookingstatements 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.

January 31, 2020

Tadano Ltd.

• The acquisition of the Demag Mobile Cranes business (Hereafter "Demag") completed on July 31, 2019. In this report, Demag is treated as follows:

• FY2019 3Q Consolidated Financial Statements: B/S as of September 30 and P/L from August to September are included.
• FY2019 Business Performance Forecast: P/L for 5 months from August to December 2019 is included.

Income Statement （vs. Same Period of Previous Year）

• Unit: millions of yen）

	3Q FY2018	3Q FY2019		Increase/
						Decrease
	Amount	Percentage	Amount	Percentage
Net sales	125,276	100.0%	148,877	100.0%	23,600
Cost of sales	91,679	73.2%	109,822	73.8%	18,142
Gross profit on installment	128	0.1%	-27	-0.0%	-155
sales
Gross profit	33,725	26.9%	39,027	26.2%	5,302
Selling, general, and	24,771	19.8%	28,427	19.1%	3,656
administrative expenses
Operating income	8,953	7.1%	10,599	7.1%	1,645
Non-operating income and loss	-224	-0.2%	-651	-0.4%	-426
Ordinary income	8,729	7.0%	9,947	6.7%	1,218
Extraordinary income and loss	-1,906	-1.5%	475	0.3%	2,382
Income before income taxes	6,822	5.4%	10,423	7.0%	3,600
Corporate taxes	1,834	1.5%	3,667	2.5%	1,832
Net income attributable to	21	0.0%	11	0.0%	-9
noncontrolling interests
Net income attributable to	4,966	4.0%	6,744	4.5%	1,777
owners of the parent

1

Balance Sheet （vs. End of Previous Fiscal Year）

(Unit: millions of yen)

	FY 2018 Year-End	3Q FY2019		Increase/
						Decrease
	Amount	Percentage	Amount	Percentage
Cash deposits	65,952	25.8%	98,089	28.5%	32,137
Accounts receivable	50,836	19.9%	45,788	13.3%	-5,048
Inventories	62,757	24.5%	107,287	31.2%	44,530
Other current assets	6,610	2.6%	9,105	2.6%	2,495
Total current assets	186,156	72.8%	260,271	75.6%	74,115
Tangible fixed assets	52,597	20.5%	66,205	19.2%	13,608
Intangible fixed assets	1,703	0.7%	1,811	0.5%	107
Investment and other	15,336	6.0%	16,014	4.7%	678
assets
Total fixed assets	69,637	27.2%	84,032	24.4%	14,394
Total assets	255,793	100.0%	344,303	100.0%	88,509
Accounts payable	41,792	16.3%	48,129	14.0%	6,337
Interest-bearing debt	30,165	11.8%	99,894	29.0%	69,728
Other liabilities	28,810	11.3%	40,661	11.8%	11,851
Total liabilities	100,768	39.4%	188,685	54.8%	87,917
Total equity	155,025	60.6%	155,617	45.2%	592
Total liabilities and	255,793	100.0%	344,303	100.0%	88,509
equity

2

Net Sales by Product

(Millions of yen)

180,000	Mobile Cranes
Truck Loader Cranes
	Aerial Work Platforms
	Other

150,000148,877

	125,276	25,573
120,000	23,323	12,108
		16,549

12,608

90,000

14,911

60,000

94,646

74,433

30,000

0

3Q FY2018

3Q FY2019

(Unit: millions of yen)

	3Q FY2018	3Q FY2019					Increase /
	Tadano	Demag	Decrease
					（ Existing business）
	Amount	Percentage	Amount	Percentage	Amount	Percentage	Amount	Percentage	Amount	Percentage
Mobile	74,433	59.4%	94,646	63.6%	88,829	63.1%	5,817	73.0%	20,212	27.2%
Cranes
Truck
Loader	14,911	11.9%	16,549	11.1%	16,549	11.7%	-	-	1,638	11.0%
Cranes
Aerial Work	12,608	10.1%	12,108	8.1%	12,108	8.6%	-	-	-499	-4.0%
Platforms
Other	23,323	18.6%	25,573	17.2%	23,422	16.6%	2,151	27.0%	2,249	9.6%
Total	125,276	100%	148,877	100%	140,909	100%	7,968	100%	23,600	18.8%
Breakdown of Mobile Crane Sales Inside and Outside Japan
Japan		24,403		30,260		30,260		-	5,856	24.0%
Outside Japan		50,029		64,385		58,568		5,817	14,355	28.7%
Exchange Rate
USD		109.61		109.15
EUR		130.97		122.66

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

3

Net Sales by Destination

(Millions of yen)

Europe

North America

90,000		Caribbean, Central and South America
		Asia
		Middle East	77,831
		Other
			15,890
		61,844
60,000
		15,039
			34,756
		24,773
30,000
			3,137
		802	10,097
		9,588
		4,091	5,327
		7,548	8,620
0
	3Q FY2018	3Q FY2019

(Unit: millions of yen)

	3Q FY2018	3Q FY2019					Increase /
	Tadano
	Demag	Decrease
					(Existing business)
	Amount	Percentage	Amount	Percentage	Amount	Percentage	Amount	Percentage	Amount	Percentage
Europe	15,039	12.0%	15,890	10.7%	12,821	9.1%	3,069	38.5%	850	5.7%
North	24,773	19.8%	34,756	23.3%	33,386	23.7%	1,370	17.3%	9,982	40.3%
America
Caribbean,	802	0.6%	3,137	2.1%	1,671	1.2%	1,466	18.4%	2,335	291.1%
Central and
South America
Asia	9,588	7.7%	10,097	6.8%	9,831	7.0%	266	3.3%	509	5.3%
Middle East	4,091	3.3%	5,327	3.6%	3,585	2.5%	1,742	21.9%	1,235	30.2%
Other	7,548	6.0%	8,620	5.8%	8,586	6.1%	34	0.4%	1,071	14.2%
Subtotal	61,844	49.4%	77,831	52.3%	69,881	49.6%	7,950	99.8%	15,986	25.9%
(total outside
Japan sales)
Japan	63,432	50.6%	71,046	47.7%	71,029	50.4%	17	0.2%	7,613	12.0%
Total	125,276	100%	148,877	100%	140,909	100%	7,968	100%	23,600	18.8%

The graph on the left excludes Japan.

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

4

FY 2019 Business Performance Forecast

FY 2019 Business Performance Forecast released on January 31

(Unit: millions of yen)

	FY 2018	FY 2019							Percent
		Tadano	Demag
	Forecast as of Jan 31
				(Existing business)		change
	Amount	Percentage	Amount	Percentage		Amount	Percentage	Amount	Percentage
Net sales	188,451	100%	228,000	100%	203,300	100%	24,700	100%	21.0%
Operating income	15,835	8.4%	11,600	5.1%	15,300	7.5%	-3,700	-15.0%	-26.7%
Ordinary income	15,604	8.3%	11,600	5.1%						-25.7%
Net income attributable to	11,462	6.1%	7,000	3.1%						-38.9%
owners of the parent

*As a result of the review of FY2019 business performance forecast in consideration of cumulative 3Q business performance, operating income, ordinary income, and net income attributable to owners of the parent are expected to exceed the previous forecast.

The forecast above doesn't take into account the effects of purchase price adjustment, etc. after the closing of Demag acquisition.

(Reference) FY 2019 Business Performance Forecast released on October 30

(Unit: millions of yen)

	FY 2018	FY 2019							Percent
		Tadano	Demag
	Forecast as of Oct 30
				(Existing business)		change
	Amount	Percentage	Amount	Percentage		Amount	Percentage	Amount	Percentage
Net sales	188,451	100%	228,000	100%	200,700	100%	27,300	100%	21.0%
Operating income	15,835	8.4%	10,000	4.4%	14,500	7.2%	-4,500	-16.5%	-36.8%
Ordinary income	15,604	8.3%	10,000	4.4%						-35.9%
Net income attributable to	11,462	6.1%	5,000	2.2%						-56.4%
owners of the parent

5

FY 2019 Forecast (Net Sales by Product)

(Millions of yen)	Mobile Cranes
250,000	Truck Loader Cranes
Aerial Work Platforms

(Unit: millions of yen)

200,000

Other

188,451

31,907

228,000

37,400

17,450

22,400

	FY 2018	FY 2019	Tadano			Increase /
	Forecast	Demag	Decrease
			（ Existing business）
	Amount	Percentage	Amount	Percentage	Amount	Percentage	Amount	Percentage	Amount	Percentage
Mobile	117,556	62.4%	150,750	66.1%	131,400	64.6%	19,350	78.3%	33,194	28.2%
Cranes
Truck	20,667	11.0%	22,400	9.8%	22,400	11.0%	-	-	1,733	8.4%
Loader

150,000 18,320

20,667

100,000

150,750

117,556

50,000

0

FY 2018	FY 2019
	Forecast

Cranes
Aerial Work	18,320	9.7%	17,450	7.7%	17,450	8.6%	-	-	-870	-4.7%
Platforms
Other	31,907	16.9%	37,400	16.4%	32,050	15.8%	5,350	21.7%	5,493	17.2%
Total	188,451	100%	228,000	100%	203,300	100%	24,700	100%	39,549	21.0%

Breakdown of Mobile Crane Sales Inside and Outside Japan

Japan	42,250	47,900	47,750	150	5,650	13.4%
Outside Japan	75,306	102,850	83,650	19,200	27,544	36.6%

FY 2019 business performance forecast was revised on January 31.

6

FY 2019 Forecast (Net Sales by Destination)

(Millions of yen)

	Europe
150,000	North America

Caribbean, Central and South America

Asia
Middle East
Other	124,050

		24,450
100,000	91,381
	19,122
		54,250
50,000	40,412
		6,250
	1,445	13,950
	13,775	10,950
	6,156
	10,469	14,400
0
FY 2018	FY 2019
		Forecast

(Unit: millions of yen)

	FY 2018	FY 2019						Increase /
	Tadano
	Forecast	Demag		Decrease
			(Existing business)
	Amount	Percentage	Amount	Percentage	Amount	Percentage	Amount	Percentage		Amount	Percentage
Europe	19,122	10.1%	24,250	10.6%	16,400	8.1%	7,850	31.8%	5,128	26.8%
North	40,412	21.4%	54,250	23.9%	49,600	24.4%	4,650	18.9%	13,838	34.2%
America
Caribbean,	1,445	0.8%	6,250	2.7%	1,600	0.8%	4,650	18.8%	4,805	332.5%
Central and
South America
Asia	13,775	7.3%	13,950	6.1%	13,200	6.5%	750	3.0%	175	1.3%
Middle East	6,156	3.3%	10,950	4.8%	6,600	3.2%	4,350	17.6%	4,794	77.9%
Other	10,469	5.6%	14,400	6.3%	12,150	6.0%	2,250	9.1%	3,931	37.5%
Subtotal	91,381	48.5%	124,050	54.4%	99,550	49.0%	24,500	99.2%	32,669	35.8%
(total outside
Japan sales)
Japan	97,069	51.5%	103,950	45.6%	103,750	51.0%	200	0.8%	6,881	7.1%
Total	188,451	100%	228,000	100%	203,300	100%	24,700	100%	39,549	21.0%

FY 2019 business performance forecast was revised on January 31.

The graph on the left excludes Japan.

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

7