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 Year Ended March 31, 2021
(Based on Japanese GAAP)May 13, 2021
Company name:

Denyo Co., Ltd.

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

URL

https://www.denyo.co.jp/President
Senior Executive Officer

Shoichi Shiratori
Makoto Tanabe

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 29, 2021
June 29, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 8, 2021
Yes

Holding of financial results meeting:

Yes

TEL

03-6861-1111(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating results
Percentages indicate year-on-year changesProfit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2021
55,006(12.5)
5,332 (12.0)
5,645(9.0)
3,860
(5.2)
Year ended March 31, 2020
62,887
13.2
6,057
44.2
6,202
35.1
4,071
28.6
Profit attributable toOrdinary profit/total Operating profit/net
owners ofsales
assetsparent/equity
Yen%%%
–
6.7
7.3
9.7–
7.4
8.3
9.6

Diluted earnings pershare

Earnings per share
Yen
185.13
194.32Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
79,05775,626

Millions of yen
61,56458,354

Cash flows fromoperating activities
Millions of yen
4,941
7,272

Cash flows frominvesting activities
Millions of yen(1,748)(874)

Net assets per share%
75.1
74.1

Yen
2,846.49
2,689.54(3) Consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,086)
22,913(1,528)21,054

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

22.00
22.00

––

24.00
25.00

46.00
47.00

999
1,018

23.725.4

1.7
1.7–

22.00

–

25.00

47.00

129.7

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Net sales
Millions of yen
Six months ending
September 30, 2021
Full year

Percentages 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

26,0002.6

2,000(0.7)

2,200

1.5

1,500

4.0

71.92

56,0001.8

4,700(11.9)

5,000(11.4)

3,300(14.5)

158.23

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

22,859,660 shares As of March 31, 2020

22,859,660 shares

Number of treasury shares at the end of the period
As of March 31, 2021

2,003,959 shares As of March 31, 2020

2,014,745 shares

20,850,660 shares Year ended March 31, 2020

20,952,519 shares

Average number of shares during the period
Year ended March 31, 20212

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

20,054
18,193

21,913
17,436

Electronically recorded monetary claims - operating
Securities

2,921
999

3,426
999

Merchandise and finished goods
Work in process

3,920
1,409

4,636
1,566

Raw materials and supplies
Other

5,144
293

4,073
396

Allowance for doubtful accounts

(4)

(4)

52,93254,443

13,04013,533

Accumulated depreciation(6,080)(6,387)

Buildings and structures, net

6,960

7,145

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

Machinery, equipment and vehicles

7,428

8,388

Accumulated depreciation(5,545)(5,862)

Machinery, equipment and vehicles, net

1,883

2,526

Land

4,835

5,047

Construction in progress
Other

601
2,018

20
2,001

(1,854)(1,776)164

225

14,445

14,964

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Right-of-use assets

565

519

Software
Other

45
947
16

Total intangible assets

620

583

Investments and other assets
Investment securities

7,328

8,750

Long-term loans receivable
Deferred tax assets

6171

3187

OtherAllowance for doubtful accounts

124(3)

125(2)

Total investments and other assets

7,628

9,065

22,694

24,61375,626

79,057

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

8,888

8,773

Electronically recorded obligations - operating
Short-term borrowings

1,985
210

1,991
1,317

Accrued expenses
Income taxes payable

541
1,062

514
978

Provision for bonusesProvision for bonuses for directors (and other officers)

638
81

637
83

Provision for product warranties
Other103
741

126
1,010

Total current liabilities

14,252

15,434Non-current liabilities
Long-term borrowings

1,088

–

Lease obligations
Long-term accounts payable - other

282
81

267
–

Deferred tax liabilities
Retirement benefit liability

960
433

1,358
401

Other172

31

3,019

2,058

17,272

17,493

Share capital
Capital surplus

1,954
1,779

1,954
1,779

Retained earnings
Treasury shares

51,902(2,365)54,766(2,350)Total shareholders' equity

53,27156,149

2,575

3,643

248
(32)

(417)
(10)

2,791

3,215

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests

2,290

2,198

Total net assets

58,35461,56475,626

79,057

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

Net sales
Cost of sales

62,88748,28855,006
41,683Gross profit

14,59813,323

Selling, general and administrative expenses

8,540

7,990

Operating profit

6,057

5,332

Interest income
Dividend income

50
197

42169

Rental income from buildings
Foreign exchange gains

80
–

77
15

Share of profit of entities accounted for using equity method
Miscellaneous income–
109

4564

Total non-operating income

438

415

5655

Commitment fees
Foreign exchange losses

3155

6–Rental costs
Sales discounts

924926

Share of loss of entities accounted for using equity method
Miscellaneous losses

107
6–
4

Total non-operating expenses

293

102

6,202

5,645

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

0218

040

Total extraordinary income

218

4040

722180––Non-operating income

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Loss on sale of investment securities
Loss on valuation of investment securities243

7

Profit before income taxes

Total extraordinary losses

6,177

5,678

Income taxes - current
Income taxes - deferred

1,895
(1)

1,735
(14)

Total income taxes

1,893

1,721

Profit4,284

3,956

4,071
213

3,860
96

Profit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests

5

(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

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

(884)

1,063

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

(53)
(0)

(780)
22

Share of other comprehensive income of entities accounted
for using equity method(4)

4(942)

310

3,342

4,266

3,130
212

4,284
(17)

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus1,954

Retained earnings

1,779

48,793Cumulative effects ofchanges in accounting
policies

Total shareholders'equityTreasury shares(2,107)50,420(2)

Restated balance

1,954

1,779

(2)

48,790(2,107)50,417

Changes during period
Dividends of surplus

(959)

(959)

Profit attributable to ownersof parent

4,071

4,071

Purchase of treasury shares

(276)

(276)

Disposal of treasury shares

1818

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

3,112

(258)

2,854

1,954

1,779

51,902(2,365)53,271

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

3,464

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

301

(32)

Total
accumulated Non-controlling
Total net assetsinterests
othercomprehensive
income
3,732

2,137

Cumulative effects ofchanges in accounting
policies
Restated balance

56,290
(2)

3,464

301

(32)

3,732

2,137

56,288Changes during period
Dividends of surplus(959)

Profit attributable to ownersof parent

4,071

Purchase of treasury shares(276)

Disposal of treasury shares

18

Net changes in items otherthan shareholders' equity

(888)

(52)

(0)

(941)

153

(788)

Total changes during period

(888)

(52)

(0)

(941)

153

2,065

Balance at end of period

2,575

248

(32)

2,791

2,290

58,354

7

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

1,954

Retained earnings

1,779

51,902

Cumulative effects ofchanges in accounting
policies

Total shareholders'equity

Treasury shares(2,365)53,271–

Restated balance

1,954

1,779

–

51,902(2,365)53,271

Changes during period
Dividends of surplus

(996)

(996)

Profit attributable to ownersof parent

3,860

3,860

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

15

15

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

2,863

14

2,877

1,954

1,779

54,766(2,350)56,149

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

2,575

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans248(32)Totalaccumulated Non-controlling
Total net assetsinterests
othercomprehensive
income
2,791

2,290

Cumulative effects ofchanges in accounting
policies
Restated balance

58,354–

2,575

248(32)

2,791

2,290

58,354

Changes during period
Dividends of surplus(996)

Profit attributable to ownersof parent

3,860

Purchase of treasury shares(0)

Disposal of treasury shares

15

Net changes in items otherthan shareholders' equity

1,068(665)22424(92)332

Total changes during period

1,068(665)22424(92)3,210Balance at end of period

3,643(417)

(10)

3,215

2,198

61,5648

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
6,177

5,678

1,161
180

1,166
–

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for product warranties

(1)
3723

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and2(1)

62(3)

0

Interest and dividend income
Interest expenses(248)
56(212)
55

Share of loss (profit) of entities accounted for using equity
method107(45)

Loss (gain) on sale of investment securities
Loss (gain) on sale of non-current assets

(195)
1(40)
(0)

Loss (gain) on disposal of non-current assets
Decrease (increase) in trade receivables

39
1,607

763

Decrease (increase) in inventories
Increase (decrease) in trade payables

137(545)(32)
24

Other, net

(32)

(121)

Subtotal8,455

6,575261

225

Interest paid
Income taxes paid

(56)
(1,386)(55)(1,804)

Net cash provided by (used in) operating activities

7,272

4,941

Depreciation
Loss (gain) on valuation of investment securities

other officers)
Increase (decrease) in allowance for doubtful accounts

Interest and dividends received

Cash flows from investing activities
Purchase of property, plant and equipment(1,250)(1,844)Purchase of intangible assets
Purchase of investment securities

(18)
(2)

(39)
(2)

Proceeds from sale of investment securities
Loan advances

390
(1)

134
(0)

Proceeds from collection of loans receivable
Net decrease (increase) in time deposits

518

3–

Other, net

(15)

0

Net cash provided by (used in) investing activities(874)(1,748)Net increase (decrease) in short-term borrowings
Purchase of treasury shares

(218)
(276)

0(0)

Dividends paid
Dividends paid to non-controlling interests

(959)
(58)

(996)
(74)

Other, net

(15)

(14)

Net cash provided by (used in) financing activities(1,528)(1,086)

Effect of exchange rate change on cash and cash equivalents

13(246)

Net increase (decrease) in cash and cash equivalents

4,883

1,859

Cash and cash equivalents at beginning of period

16,17021,054

Cash and cash equivalents at end of period

21,05422,913

Cash flows from financing activities

9Supplementary information（1）Sales results by product(Millions of yen)
Product

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Year-on-year
Change%Generators

50,43644,020(6,416)(12.7)

Welders
Compressors

5,072
1,012

4,386
755(686)(257)(13.5)(25.4)

Others

6,365

5,845

(520)(8.2)

Total

62,88755,006(7,880)(12.5)（2）Sales results by region(Millions of yen)
RegionFiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

Year-on-year
Change%Japan
North/Central America

37,043
18,43037,737
10,897694(7,532)

1.9(40.9)

Asia
Others

5,197
2,216

3,948
2,423

(1,249)207(24.0)
9.4

Total

62,88755,006(7,880)(12.5)

10