Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2023
(Based on Japanese GAAP)
August 9, 2023
Company name:

Denyo Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
6517
Representative:
Inquiries:

URL

https://www.denyo.co.jp/President
Director & Managing Executive Officer

Takanori Yoshinaga
Makoto Tanabe

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

August 10, 2023–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

YesNo

TEL

03-6861-1111(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profitowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended June 30, 2023
16,83631.6
996 196.0
1,177 186.9
806 208.9
Three months ended June 30, 2022
12,7916.8
336 (60.3)
410 (52.2)
260 (55.1)
Earnings per share

Diluted earnings per share

Yen
39.07
12.59

Three months ended June 30, 2023
Three months ended June 30, 2022

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
90,97689,744As of June 30, 2023
As of March 31, 2023

Equity ratio

Millions of yen
69,49868,658

%
73.3
73.4

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
23.00

Yen–

Yen
27.00

Yen
50.00

24.00

–

27.00

51.00

Year ended March 31, 2023
Year ending March 31, 2024
Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Net sales
Millions of yen
Six months ending
September 30, 2023
Full yearPercentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

30,000

6.1

1,600

47.6

1,750

51.2

1,200

49.9

58.16

65,000

1.1

5,000

2.6

5,350

3.3

3,700

1.8

179.331

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023

22,859,660 shares As of March 31, 2023

22,859,660 shares

Number of treasury shares at the end of the period
As of June 30, 2023

2,220,571 shares As of March 31, 2023

2,226,890 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2023

20,632,797 shares Three months ended June 30, 2022

220,719,612 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of June 30, 2023

AssetsCurrent assets
Cash and deposits

21,331

22,894Notes receivable - trade
Electronically recorded monetary claims - operating

3,021
4,864

3,171
5,790

Accounts receivable - trade
Securities

14,172
999

12,060999

Merchandise and finished goods
Work in process

5,243
2,103

4,946
2,642

Raw materials and supplies
Other

9,066
719

9,162
393

Allowance for doubtful accounts
Total current assets

(4)

(4)

61,51762,055

Non-current assets
Property, plant and equipment
Buildings and structures, net

8,211

8,136

Machinery, equipment and vehicles, net
Land

1,716
6,494

1,599
6,497

Construction in progressOther, net

1,643
211

1,740
204

Total property, plant and equipment

18,27818,178Intangible assets
Investments and other assets

831

861

Investment securities
Deferred tax assets

8,669
286

9,449
274

163
(2)

161
(2)

Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

9,118

9,881

28,22728,92189,744

90,976

(Millions of yen)
As of March 31, 2023

As of June 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating10,047
2,690

9,882
2,787

Short-term borrowings
Accrued expenses

1,882
577

1,882
1,311

Income taxes payable
Provision for bonuses

671
666

492
410

Provision for bonuses for directors (and other officers)
Provision for product warranties

63
99

19
105

Other

1,001

1,004

Total current liabilities

17,70017,895Long-term borrowings
Lease liabilities

1,365
328

1,426
327

Deferred tax liabilities
Retirement benefit liability

1,167
513

1,310
506

1010

Non-current liabilities

Other
Total non-current liabilities

3,385

3,582

21,085

21,478

Share capital
Capital surplus

1,954
1,788

1,954
1,788

Retained earnings
Treasury shares

59,100(2,720)59,327(2,717)

Total shareholders' equity

60,12360,353

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

3,500

4,090

Foreign currency translation adjustment
Remeasurements of defined benefit plans

2,322
(51)

2,278
(47)

Total accumulated other comprehensive income

5,770

6,321

Non-controlling interests

2,764

2,823

Total net assets

68,65869,498

89,744

90,976

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Three months ended

Three months ended

June 30, 2022

June 30, 2023

Net sales
Cost of sales

12,791
10,283

16,836
13,489Gross profit

2,508

3,347

Selling, general and administrative expenses

2,171

2,350

336

996

Interest income
Dividend income

1182

26
93

Rental income from buildings
Foreign exchange gains

20–2056

Other518120

215

Interest expenses
Foreign exchange losses

5222–

Share of loss of entities accounted for using equity method
Other28984

Operating profit
Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses

4634410

1,177

Gain on sale of non-current assets
Gain on sale of investment securities–1420

Total extraordinary income

14300Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets

00Profit before income taxes

Total extraordinary losses

424

1,180

Income taxes - current
Income taxes - deferred

236
(61)

440
(102)

Total income taxes

174

337

Profit249

842

Profit attributable to owners of parent
Profit (loss) attributable to non-controlling interests

260(11)

806
36

Other comprehensive income
Valuation difference on available-for-sale securities

(75)

587

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

714
15(21)
3

Share of other comprehensive income of entities accounted
for using equity method(0)2

Total other comprehensive income

654

572

Comprehensive income

904

1,415

Comprehensive income attributable toComprehensive income attributable to owners of parent

771

1,356

Comprehensive income attributable to non-controlling interests

13359

Profit attributable to5

Revenue Recongnition[Breakdown of Revenue from Contracts with Customers]（1）Sales results by product(Millions of yen)
Product
Generators
Welders
Compressors
Others
Revenue from contracts
with customers
Other revenue
Net sales to external customers

Three months ended

Three months ended

June 30, 2022

June 30, 2023

Year-on-year
Change%10,232
1,158

14,396
991

4,164
(167)

40.7
(14.4)

162
1,237

192
1,256

29
18

18.3
1.512,791

16,836

4,045

31.6

－

－－－

12,791

16,836

4,045

31.6

（2）Sales results by region(Millions of yen)
RegionJapan
Overseas
North/Central America
Asia
Others
Revenue from contracts
with customers
Other revenue
Net sales to external customers

Three months ended
June 30, 2022

Year-on-year

Three months ended
June 30, 2023

Change%

6,581

7,243

662

10.1

6,210
4,149

9,593
7,118

3,383
2,968

54.5
71.5

1,539
521

1,549
925

10
403

0.7
77.4

12,791

16,836

4,045

31.6

－－－－

12,791

16,836

4,045

31.6

6