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 Nine Months Ended December 31, 2022
(Based on Japanese GAAP)
February 9, 2023
Company name:

Denyo Co., Ltd.

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

URL

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

Shoichi Shiratori
Makoto TanabeTEL

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

February 10, 2023–

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

03-6861-1111(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31, 2022
46,183
17.1
2,751
12.0
2,818
3.9
1,994
5.0
Nine months ended December 31, 2021
39,4491.2
2,456 (28.4)
2,711 (26.1)
1,900 (23.9)
Earnings per share

Diluted earnings per share

Yen
96.34
91.10

Nine months ended December 31, 2022
Nine months ended December 31, 2021

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
89,10280,774As of December 31, 2022
As of March 31, 2022

Equity ratio

Millions of yen
68,12063,760

%
73.2
76.0

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
22.00
23.00

Yen––

Yen
25.00

Yen
47.00

25.00

48.00

Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Net sales

Full yearMillions of yen
60,000Percentages 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
8.8
3,400(6.9)
3,500 (13.1)
2,400 (12.8)
115.801

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2022
(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 December 31, 2022

22,859,660 shares As of March 31, 2022

22,859,660 shares

Number of treasury shares at the end of the period
As of December 31, 2022

2,232,933 shares As of March 31, 2022

2,140,078 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2022

20,707,208 shares Nine months ended December 31, 2021

220,862,583 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of December 31, 2022

AssetsCurrent assets
Cash and deposits

22,35821,692

Notes receivable - tradeElectronically recorded monetary claims - operating

4,102
4,306

3,667
4,368

Accounts receivable - trade
Securities

11,856
999

13,930999

Merchandise and finished goods
Work in process

5,086
1,724

4,731
2,680

Raw materials and supplies
Other

6,049
392

9,734
724

Allowance for doubtful accounts
Total current assets

(4)

(4)

56,87262,526

7,140

7,509

2,011
5,066

1,807
6,310

319
226

1,228
205

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progressOther, net

14,764

17,061Intangible assets
Investments and other assets

Total property, plant and equipment

694

796

Investment securities
Deferred tax assets

8,092
226

8,355
207

127(2)

157
(2)

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

3

8,443

8,717

23,902

26,57580,774

89,102

(Millions of yen)
As of March 31, 2022

As of December 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

9,026
2,554

11,725
3,408

Short-term borrowings
Accrued expenses

210
553

210
718

Income taxes payable
Provision for bonuses

404
642

84
393

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

66
98

46
102

Other

713

1,329

14,26918,018

856
283

928
327

1,113
458

1,188
508

31

10

Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities

2,744

2,963

17,013

20,982

Share capital
Capital surplus

1,954
1,788

1,954
1,788

Retained earnings
Treasury shares

56,500(2,598)57,462(2,724)

Total shareholders' equity

57,64558,481

3,209

3,312

591
(33)

3,460
(26)

3,766

6,746

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

2,348

2,892

Total net assets

63,76068,12080,774

89,102

Total liabilities and net assets

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

Nine months ended

December 31, 2021

December 31, 2022

Net sales
Cost of sales

39,44930,91546,18336,883Gross profit

8,534

9,300

Selling, general and administrative expenses

6,078

6,549

Operating profit

2,456

2,751

Interest income
Dividend income

30139

37185

Rental income from buildings
Foreign exchange gains

61
1161
–

Share of profit of entities accounted for using equity method
Other1543152
30

Total non-operating income

302

467

3133–15347
19

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

47400

2,711

2,818

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

028

039

Total extraordinary income

2939

38

1

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets

38

1

Profit before income taxes

Total extraordinary losses

2,702

2,856

Income taxes - current
Income taxes - deferred

683
11279657

Total income taxes

795

853

1,906

2,002

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

1,900
5

1,994
7

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

(231)

101

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

940
8

3,407
7

Share of other comprehensive income of entities accounted
for using equity method(0)1

Total other comprehensive income

716

3,518

Comprehensive income

2,623

5,520

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,473

4,974

149

545

ProfitProfit attributable toComprehensive income attributable to non-controlling interests

5Revenue Recongnition[Breakdown of Revenue from Contracts with Customers]（1）Sales results by product(Millions of yen)
Product
Generators

Nine months ended

Nine months ended

December 31, 2021

December 31, 2022

Year-on-year
Change%31,085
3,619

38,289
3,325

7,204
(293)

23.2
(8.1)

Others

588
4,157

573
3,995

(15)
(161)

(2.6)
(3.9)

Revenue from contracts

39,44946,183

6,733

17.1Welders
Compressors

with customers
Other revenue
Net sales to external customers－－－－

39,44946,183

6,733

17.1

（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

Nine months ended
December 31, 2021

Year-on-year

Nine months ended
December 31, 2022

Change%24,624

23,665

(959)

(3.9)

14,825
9,248

22,51815,694

7,692
6,445

51.9
69.7

3,287
2,289

4,909
1,914

1,622(375)49.4(16.4)

39,44946,183

6,733

17.1

－－－－

39,44946,183

6,733

17.1

6