Briefing on Results for the First quarter of theFiscal Year ending March 31, 2021

Ⅰ．Overview of Results for
the First quarter of FY2021/3
Ⅱ．Outlook for FY2021/3

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2

Key points• Net sales decreased, but profit increased because of a decrease in SG&A expenses and other factors.
• The impact of the spread of infection from COVID-19 was limited in Japan. Overseas, the impact ofresults for the first quarter of FY 2021/3 was small because overseas subsidiaries close theiraccounts at the end of March for the first quarter. The consolidated results for the second quarter will
be affected by the spread of COVID-19 infection.

(million yen）

Rate ofchange(YoY)

First quarter of
FY2020/3

First quarter of
FY2021/3

Change(YoY)

13,552

100％

13,070100％△ 482 △ 3.6％

Operating income

799

5.9％

1,095

8.4％

296

36.9％

Ordinary income

740

5.5％

1,216

9.3％

476

64.3％

Profit attributableto owners of parent

417

3.1％

846

6.5％

429 102.9％

Capital investment

637－

408－

△ 229 △35.9％

Depreciation

290－266－△ 24 △ 8.3％

19.91 yen－

40.60 yen－

Net sales

Net income per share

20.69 yen103.9％
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(million yen)First quarter of
FY2020/3

First quarter of
FY2021/3

Change(YoY)

Rate ofchange(YoY)

13,552

100％

13,070

100％

△ 482

△ 3.6％

Generators

10,52077.6％

10,365

79.3％

△ 155

△ 1.5％

Welders

1,216

9.0％

1,178

9.0％

△ 37

△ 3.1％

Compressors

263

1.9％

266

2.0％

20.8％

Others

1,551

11.4％

1,259

9.6％

By productNet sales△ 291 △ 18.8％
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(million yen)First quarter of
FY2020/3

Generators

10,520First quarter of
FY2021/3

Rate of change(YoY)

10,365• In Japan, shipment to the rental company
decreased, but the shipment of the emergency
generators remain robust.
• Overseas, shipment to America settled down.

△ 1.5％

65%

Domestic market share of*According to aengine generators (mobile-type) Company survey

Manufacturing engine-driven generators with capacityfrom 1kVA to 1100kVA

Silent generator“Mālie”

Vertical type minimum spaceStand-by generating sets

Mobile-type generators
Power source on a construction site and for civil engineering workand disaster recovery/restoration, etc.
Stand-by generating sets (stationary type)Back-up power source such as disaster prevention equipment
and offices, etc.
Power-supply vehicles, etc.
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(million yen)First quarter of
FY2020/3

Welders

1,216

First quarter of
FY2021/3

Rate of change(YoY)

1,178• Shipment of the specialized welding machines
increased but shipment of the small-typemachines decreased.

△ 3.1％

55%

Domestic market share ofengine welders

CO2 welder*According to aCompany survey

The Company developed the first engine-driven welder for outdoor
work in Japan.
Ranging from 135A for welding light-gauge steel to a 500A engine-driven
welder for heavy-gauge steel, a TIG welder and a CO2 welder, etc.
Welding of steel construction for buildings, condominiums and bridges.
Welding of important structures such as petroleum storage tanks andpipelines.
6

(million yen)First quarter of
FY2020/3

First quarter of
FY2021/3

263

Compressors• Shipment to Japan and overseas were
unchanged from the previous year.

Rate of change
(YoY)

0.8％

266

20%

Domestic market share ofengine compressors*According to aCompany survey

Manufacturing compressors with air discharge
amounts from 1.7㎥/min to 45.3㎥/min.
 Breaking-up of roads and ground improvement
work of roads
 Mortar spraying work for preventing landslides ofmountain roads.
 For artificial snow machines on ski slopes, etc.
Engine compressor

Motor compressor

7

(million yen)First quarter of
FY2020/3

Others

1,551

First quarter of
FY2021/3

1,259

Rate of change(YoY)△ 18.8％• Shipment of the self-propelled lifers and the purchased merchandises,
etc. decreased.

Sales of other products
Self-propelled lifters
Load testing equipmentParts
Secondhand equipment and purchased
merchandiseRepair sales, etc.
Self-propelled lifter

Load testing
equipment8(million yen)First quarter of
FY2020/3

First quarter of
FY2021/3

Change(YoY)

Rate of change(YoY)

13,552

100%

13,070

100%

△ 482

△ 3.6%

Domestic sales

7,267

53.6%

7,204

55.1%

△ 63

△ 0.9%

Overseas sales

6,285

46.4%

5,866

44.9%

△ 419

△ 6.7%

North/Central
America

4,584

33.8%

4,081

31.2%

△ 502

△ 11.0%

Asia

1,292

9.5%

1,250

9.6%

△ 41

△ 3.2%

Others4083.0%

533

4.1%

124

30.6%

By region

Net salesFirst quarter of FY2020/3

Japan

First quarter of FY2021/3

Japan

0

2,000

4,000

North/Central
America
North/Central
America

6,000

8,000

10,000Asia Others

AsiaOthers

12,00014,000 (million yen)9

Increase in
Operating income• The operating income increased because of adecrease in SG&A expenses.
(million yen)First quarter ofFY2020/3

First quarter ofFY2021/3

Operating income

799

1,095

296

Operating income margin

5.9%

8.4%

2.5percentage pointFirst quarter ofFY2020/3

First quarter ofFY2021/3

Gross profit margin

22.1%

22.4%

0.3percentage point

Ratio of SG&A to sales

16.2%

14.0%

△2.2percentage point

Ratio of operating income to sales

5.9%

8.4%

2.5percentage point••

Change(YoY)

Rate of change(YoY)

Gross profit margin increased by an increase in the sales ratio of the product with relatively high profitability.
Ratio of SG&A to sales is improved by a decrease of expenses.

1011Key points• The impact of the spread of infection from COVID-19 was not included in that forecast, depending on thesituation, it may affect the forecast of business results.
• Currently, all of the Denyo group’s domestic and overseas sales offices and production facilities areoperating as usual.
• Assumed exchange rate is 105 yen/dollar.

FY2020/3(million yen)

FY2021/3 (forecast)

Change (YoY)

Rate ofchange(YoY)△ 7.8%Net sales

62,887100%

58,000100%△ 4,887

Operating income

6,057

9.6%

4,900

8.4%

△ 1,157 △ 19.1%

Ordinary income
Profit attributable toowners of parent
Capital investment

6,202

9.9%

5,200

9.0%

△ 1,002 △ 16.2%

4,071

6.5%

3,5006.0%△ 571 △ 14.0%

1,201

2,000799

66.5%

Depreciation

1,162

1,25088

7.6%

Net income pershare

194.3yen

167.9yen△ 26.4yen

7.4%

*6.2%

46.0yen46.0yenROE
Cash dividends pershare* Equity is calculated by using the amount of money at the end of FY2020/3.

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Overview•The net sales are expected to be worsen because of reactionary fall insales of Engine Generators for the American market which the sales
greatly increased in a prior period and decrease of sales of Engine
Generators for construction sites in Japan.
(million yen)

FY2020/3

FY2021/3 (forecast)

Change (YoY)

Rate of change(YoY)

62,887100%

58,000100% △4,887 △ 7.8%

Generators

50,43680.2%

45,80079.0% △4,636 △ 9.2%

Welders

5,072

8.1%

5,200

9.0%

128

2.5%

Compressors

1,012

1.6%

1,100

1.9%

888.7%

Others

6,365

10.1%

5,900

10.2%

△ 465

△ 7.3%

By products

Consolidatedsales

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(million yen)

FY2020/3

FY2021/3 (forecast)

Change (YoY)

Rate ofchange(YoY)

62,887100%

58,000100%△ 4,887△ 7.8%

Domestic sales37,043

58.9%

35,60061.4%△ 1,443△ 3.9%

Overseas sales

25,84441.1%

22,40038.6%△ 3,444 △ 13.3%

North/Central
America

18,43029.3%

14,90025.7%△ 3,530 △ 19.2%

Asia

5,197

8.3%

5,200

9.0%

30.1%

Others

2,216

3.5%

2,300

4.0%

843.8%

By region

Consolidated
sales

FY2020/3Japan

FY2021/3(forecast)

Japan
0

5,000

10,00015,00020,000

North/Central
America
North/Central
America
25,00030,00035,00040,00045,000Asia Others

Asia Others
50,00055,00060,00065,000 (million yen)

14Decrease in operatingincome• With the decrease of the net sales, operating income
is expected to decrease by 1,157 million yen.
(million yen)

FY2020/3

FY2021/3(forecast)

Change (YoY)△ 1,157

Operating income

6,057

4,900

Operating income margin

9.6%

8.4% △ 1.2percentage point

FY2020/3

FY2021/3(forecast)

Change (YoY)

Gross profit margin

23.2%

23.1% △ 0.1percentage point

Ratio of SG&A to sales

13.6%

14.7%

Ratio of operating income to sales

9.6%

8.4% △ 1.2percentage point

1.1percentage point

・The gross profit margin is expected to be slightly decreased by the demand for the relatively profitableproducts are expected to be remain robust, although the net sales decrease.
・The ratio of SG&A to sales are expected to be worsen by an increase of the rate of fixed cost which is caused byan decrease of the net sales.
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(million yen)

End of March2018

End of March2019

End of March
2020

End of March
2021 (plan)

Cost ofequipment

870

1,499

1,201

2,000

Main uses

・Machinery of Fukui plant,etc.
310
・Nishihatsu
50
・U.S. Plant
450
・Vietnam Plant
20
・Others40・Machinery of Fukui plant,
etc.
730
・Nishihatsu
50
・U.S. Plant
670
・Others
40

・Machinery of Fukui plant,
etc.
810
・Nishihatsu
20・U.S. Plant
290
・Vietnam Plant
10・Others
70・Machinery of Fukui plant,
etc.
1,600
・Nishihatsu
50
・U.S. Plant
150
・Vietnam Plant
80
・Others120

Production Sites:

Amount of capital investment
million yen

2,500
2,000
1,500

・Fukui Plant
・Shiga Sub-Plant
・Nishihatsu

1,000・America Plant

・Vietnam Plant
500

・Indonesia Plant
0
End ofMarch2018

End ofMarch2019

End ofMarch
2020

End ofMarch2021(plan)

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This material contains assumptions and outlooks for the future andforecasts based on plans as of August 6, 2020.
Actual results may differ materially from projected values due tofuture economic changes and competition.
This material is prepared for the purpose of providing informationand is not meant to solicit investment in securities issued by theCompany.
Investors are responsible for making their own final investment
decision.

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