Briefing on Results for the Third quarter of theFiscal Year ending March 31, 2018

1Highlights of Results for the Third quarter of FY2018/3(Consolidated)(million yen）

Third quarter ofFY2017/3

Third quarter ofFY2018/3

Net Sales

35,224100％

36,198

100％

974

2.8％

Operating income

2,653

7.5％

2,678

7.4％

250.9％

Ordinary income

2,890

8.2％

2,852

7.9％

△38 △1.3％

Profit attributableto owners of parent

1,817

5.2％

1,816

5.0％

△1 △0.0％

Capital investment

372－585－213

Depreciation

896－

892－

△4 △0.4％84.99yen－

85.51yen－

Net income per share

ROE(%)

4.9 Annualized

4.7 Annualized

Change(YoY)

0.52yen－Rate of change(YoY)

57.3％
0.6％
－2

Sales Trends by Product (Consolidated)(million yen）

By productNet sales

Third quarter of
FY2017/3

Third quarter of
FY2018/3

35,22436,198100％

Change(YoY)

Rate ofChange(YoY)

100％

974

2.8％

Generators

26,163 74.3％

27,577 76.2％

1,414

5.4％

Welders

3,765 10.7％

3,775 10.4％

100.3％

Compressors

Others

1,052

3.0％

4,242 12.0％

737

2.0％

4,108 11.3％△315 △29.9％
△134

△3.2％
3

Engine Generators (Consolidated)(million yen）

Third quarter ofFY2017/3

Generators

26,163

Third quarter ofFY2018/3

Rate of change(YoY)

5.4％

27,577• In Japan, shipment to the major rental industry mainly increased.
• Overseas, shipment to Asia decreased.
Manufacturing engine-driven generators with capacity from 1kVA to 1100kVA
Mobile-type generators
Power source on a construction site and for civil engineering work and 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, power light, etc.

65%
Domestic market share ofengine generators (mobile-type)

Silent generator “Mālie”

Stand-by generating sets

*According to a Company survey

4Engine Welders (Consolidated)(million yen）

Third quarter of
FY2017/3

Welders

3,765

Third quarter of
FY2018/3

3,775

Rate of change(YoY)

0.3％• Shipment to the domestic market decreased slightly while shipment toEurope increased.
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 and pipelines

55%

Engine welder

Battery welder

Domestic market share ofengine welders*According to a Company survey

5Engine Compressors (Consolidated)(million yen）

Third quarter of
FY2017/3

Compressors

1,052

Third quarter of
FY2018/3

Rate of change(YoY)△29.9％

737• Shipment to the domestic market is unchanged from the previous year,
shipment to America decreased.
Manufacturing compressors
with air discharge amounts from 1.6㎥/min to 42.4㎥/min.
 Breaking-up of roads and ground improvement work of roads
 Mortar spraying work for preventing landslides of mountain roads
 For artificial snow machines on ski slopes, etc.

20%

Engine compressor

Motor compressor

Domestic market share ofengine compressors*According to a Company survey

6Others (Consolidated)(million yen）

Third quarter of
FY2017/3

Others4,242

Third quarter ofFY2018/3

Rate of change(YoY)

△3.2％

4,108

• Sales of self-propelled lifters and Repair sales, etc. decreased.

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

Self-propelled lifter

Load testing equipment

7

Sales Trend by Region (Consolidated)(million yen）

Third quarter ofFY2017/3

Third quarter ofFY2018/3

Change(YoY)

Rate of change(YoY)

35,224100%

36,198

100%

974

2.8%

Domestic sales

20,95859.5%

22,593

62.4%

1,635

7.8%

Overseas sales

14,266

40.5%13,605

37.6% △661

△4.6%

North/Central
America

7,408

21.0%

7,351

20.3%

△57

△0.8%

Asia

4,973

14.1%

4,331

12.0% △642

△12.9%

Others

1,884

5.3%

1,922

5.3%

By region

Net sales

North/Central
AmericaJapan

Third quarter of FY2017/3

0

5,000

10,000

Asia

North/Central
AmericaJapan

Third quarter of FY2018/3

15,00020,00025,00038

30,000

2.0%

OthersAsia Others

35,00040,0008Factor Analysis of Changes in Operating Income（Consolidated）
Increase in Operatingincome• The operating income margin is slightly worsened, but theoperating income increased by the increase of net sales.
(million yen）

Third quarter ofFY2017/3

Third quarter ofFY2018/3

Operating income

2,653

2,678

Operating income margin

7.5%

7.4%

Third quarter ofFY2017/3

Third quarter ofFY2018/3

Change(YoY)

25
△0.1

percentage point

Rate of change(YoY)

Gross profit margin

24.1%

24.3%

0.2percentage point

Ratio of SG&A to sales

16.6%

16.9%

0.3percentage point

Ratio of operating income tosales

7.5%

7.4% △0.1percentage point••

Gross profit margin is improved by an increase in the sales of the engine generators with relatively highprofitability.
Ratio of SG&A to sales increased due to an increase of the office expense, etc.
910Outlook for FY2018/3 : Consolidated Income and LossKeypoints• Net sales are expected to be 50.5 billion yen.
• Assumed exchange rate is 105 yen/dollar.
(million yen）

FY2017/3

FY2018/3(forecast)

Change(YoY)

Rate ofChange(YoY)

Net sales

48,851 100% 50,500

100%

1,649

3.4%

Operating income

4,247 8.7%

4,000

7.9%

△247

△5.8%

Ordinary income

4,526 9.3%

4,2008.3%

△326

△7.2%

Profit attributable toowners of parent
Capital investment

2,867 5.9%

2,600

5.1%

△267

△9.3%

511－

1,000－

489

95.7%

Depreciation

1,211－

1,200－△11△0.9%

134.2yen－

122.4yen－△11.8yen

5.7%－

30.0yen－

Net income per share
ROE
Cash dividends pershare－is calculated by using the amount of money at
5.1% *Equity
the end of FY2017/3.

30.0yen－－－11

Changes in the Amount of Capital Investment (Consolidated)(million yen）

End of March2015

End of March2016

End of March2017

End of March2018 (plan)

2,531

1,125

511

1,000

Cost ofequipment••

Main uses•••

Machinery of Fukui
plant, etc. 440
Nishinihon Generator
Mfg. 160
U.S. Plant 50
Vietnam Plant 1,630
Singapore 180

•
•
•
•

Machinery of Fukui
plant, etc. 430
Nishinihon Generator
Mfg. 80
Vietnam Plant 100
Singapore 280••••

Machinery of Fukui
plant, etc. 100
Nishinihon Generator
Mfg. 50
U.S. Plant 250
Vietnam Plant 20••••

Machinery of Fukui
plant, etc. 350
Nishinihon Generator
Mfg. 70
U.S. Plant 450
Vietnam Plant 20

Amount of capital investment

million

3,000
2,500
2,000
1,500
1,0005000
End ofMarch2015

End ofMarch2016

End ofMarch2017

End ofMarch2018(plan)

Denyo Vietnam the 2nd factory12Outlook for Sales by Product (Consolidated)

Overview• Sales of generators are expected to increase by 1,943 million yen (5.3 %).
• Sales of welders are anticipated to increase by 418 million yen (8.7%).
• Sales of compressors are forecasted to be down by 290 million yen (20.1%).
(million yen）

FY2017/3

Consolidatedsales

By products

Generators

FY2018/3 (forecast)

1,649

3.4%

36,857 75.4%

38,800 76.8%

1,943

5.3%

418

8.7%

50,500Welders

4,832

9.9%

5,250 10.4%

Compressors

1,440

2.9%

1,150

OthersRate of change
(YoY)

100%

48,851

100%

Change(YoY)

5,720 11.7%

2.3%

5,300 10.5%△290 △20.1%
△420

△7.3%
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Outlook for Sales by Region (Consolidated)(million yen）

FY2017/3

Change (YoY)

Rate of change
(YoY)

100%

1,649

3.4%

FY2018/3 (forecast)

48,851

Domestic sales

29,252 59.9%

31,050 61.5%

1,798

6.1%

Overseas sales

19,599 40.1%

19,450 38.5%

△149

△0.8%

North/Central
America

10,310 21.1%

10,550 20.9%

2402.3%

Asia

6,479 13.3%

5,950 11.8%

△529

△8.2%

Others

2,808

5.8%

1425.1%

By region

Consolidated
sales

FY2017/3

100%

5.7%

2,950
North/Central
AmericaJapan

FY2018/3(forecast)

50,500

North/Central
AmericaJapan010,000

Asia

20,00030,00040,000

OthersAsia Others
50,00060,00014Details of the Operating Income Forecast (Consolidated)
Decrease inoperating income• The operating income is expected to decrease by 247 million yen.
(million yen）

FY2017/3

FY2018/3(forecast)

Change (YoY)

Operating income

4,247

4,000△247

Operating income margin

8.7%

7.9% △0.8

FY2017/3

FY2018/3(forecast)

Change (YoY)

Gross profit margin

24.5%

24.1% △0.4

Ratio of SG&A to sales

15.8%

16.2%

Ratio of operating income to sales

8.7%

7.9% △0.8••

percentage point

0.4

percentage point

percentage point

percentage point

The gross profit margin is expected to be worsen due to the shipment of large-sized machine to overseas
market decreased.
The ratio of SG&A to sales is expected to rise due to an increase of the personnel expenses, etc.
15Notes on Our Outlook

This material contains assumptions and outlooks for the future andforecasts based on plans as of February 8, 2018.
Actual results may differ materially from projected values due to future
economic changes and competition.
This material is prepared for the purpose of providing information andis not meant to solicit investment in securities issued by the Company.
Investors are responsible for making their own final investment decision.

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