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 Six Months Ended September 30, 2017
(Based on Japanese GAAP)
November 9, 2017
Company name:
Denyo Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6517
President

URL

http://www.denyo.co.jp/
Shoichi Shiratori

Inquiries:
Senior Executive Officer
Scheduled date to file Quarterly Securities Report:

Toshiya Tozawa
November 10, 2017

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

December 7, 2017
Yes

Holding of quarterly 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 six months ended September 30, 2017 (from April 1, 2017 to September 30, 2017)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2017
Six months ended September 30, 2016

Millions of yen
22,78322,894

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(0.5)
1,432 (14.1)
1,526 (14.4)
946 (14.2)(2.8)
1,667(4.4)
1,784(5.9)
1,103 (22.0)

Earnings per share

Diluted earnings per share

Yen
44.56
51.61

Six months ended September 30, 2017
Six months ended September 30, 2016

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2017
As of March 31, 2017

Net assets

Millions of yen
69,74968,678Equity ratio

Millions of yen
54,33053,145%75.1
74.4

2. Cash dividends
Annual dividends per share

Year ended March 31, 2017
Year ending March 31, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
15.00
15.00

Yen–

Yen
15.00

Yen
30.00

–

15.00

30.00

Year ending March 31, 2018 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
50,5003.4
4,000(5.8)
4,200(7.2)
2,600(9.3)
122.41

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2017

22,859,660 shares As of March 31, 201722,859,660 shares

Number of treasury shares at the end of the period
As of September 30, 2017

1,616,843 shares As of March 31, 2017

1,623,221 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 201721,238,931 shares Six months ended September 30, 2016

2

21,377,223 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of September 30, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

11,937
19,42014,621
16,956

Securities
Merchandise and finished goods

999
6,110

999
5,930

Work in process
Raw materials and supplies

1,101
3,493

1,247
3,440

758
(6)

691
(4)

43,81443,883

Buildings and structures, net
Machinery, equipment and vehicles, net

7,018
2,317

6,991
1,990

Land
Construction in progress

4,848
140

4,842
67

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets
Investments and other assetsInvestment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

174

219

14,49914,111

547

495

9,525

10,986

294
(2)

277
(5)

9,817

11,25924,86325,866

68,67869,749(Millions of yen)
As of March 31, 2017

As of September 30, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade

8,937

8,913

Short-term loans payable
Accrued expenses

210
556

210
486

Income taxes payable
Provision for bonuses

630
632

273
692

Provision for directors' bonuses
Provision for product warranties

70108

3084

Other

450

368

11,596

11,058Long-term loans payable
Deferred tax liabilities

1,122
1,907

1,127
2,361

Net defined benefit liability
Other

418
487

406
466

Total non-current liabilities

3,936

4,361

15,532

15,419

Shareholders' equity
Capital stock

1,954

1,954

Capital surplus
Retained earnings

1,779
44,521

1,779
45,136

Treasury shares(1,632)(1,621)

Total shareholders' equity

46,62347,249

3,735
764

4,760
354

(1)

(2)

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

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

4,498

5,112

Non-controlling interests

Total accumulated other comprehensive income

2,023

1,967

Total net assets

53,14554,33068,67869,749Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Six months ended
September 30, 2016

Six months ended
September 30, 2017

Net sales

22,89422,783

Cost of sales

17,266

17,326Gross profit

5,628

5,457

Selling, general and administrative expenses

3,961

4,024

Operating profit

1,667

1,432

Non-operating income
Interest income

1114

Dividend income
House rent income

80
4477
32

Share of profit of entities accounted for using equity method
Other

30
38

26
18

Total non-operating income

206

169

37

26

Sales discounts
Foreign exchange losses

832

1029

Other

119

Non-operating expenses
Interest expenses

Total non-operating expenses

8975

1,784

1,526–0

Gain on sales of investment securities–

1Total extraordinary income–

200

Ordinary profit
Extraordinary income
Gain on sales of non-current assets

Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses

00

1,784

1,528

Income taxes - current

577

463

Income taxes - deferred(11)39Profit before income taxes

Total income taxes

565

503

Profit

1,218

1,025

Profit attributable toProfit attributable to owners of parent

1,103946115

79(19)(1,525)

1,022(470)

(0)

(0)

02

Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income(1,544)553(326)

1,579(205)
(120)

1,560
18

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

5Consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2016

September 30, 2017

Cash flows from operating activities
Profit before income taxes

1,784

1,528

Depreciation
Interest and dividend income

605(92)588(92)

Interest expenses
Share of (profit) loss of entities accounted for using equity

3726(30)

(26)

–(1)

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories

2,126(349)

2,358
(45)

Increase (decrease) in notes and accounts payable - trade
Other, net(1,888)(5)50(92)

Subtotal

2,1864,294

104(37)104(26)

methodLoss (gain) on sales of investment securities

Interest and dividend income received
Interest expenses paid
Income taxes paid

(542)

(823)

Net cash provided by (used in) operating activities

1,711

3,548

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(247)
0(354)
0

Purchase of intangible assets
Purchase of investment securities

(24)
(1)

(10)
(1)

Proceeds from sales of investment securities
Payments into time deposits–(279)

26(1,235)

Proceeds from withdrawal of time deposits
Other, net–
1691
1

Net cash provided by (used in) investing activities

(550)

(882)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

00

Purchase of treasury shares
Cash dividends paid

(0)
(355)

(0)
(331)

Dividends paid to non-controlling interests
Other, net

(85)
(16)

(74)
–

Net cash provided by (used in) financing activities

(458)

(406)

Effect of exchange rate change on cash and cash equivalents

(425)

(92)

Cash flows from investing activities

Net increase (decrease) in cash and cash equivalents

276

2,167

Cash and cash equivalents at beginning of period

11,745

12,219Cash and cash equivalents at end of period

12,022

14,387

6Supplementary information（1）Sales results by product(Millions of yen)Six months ended
September 30, 2016

Product

Six months ended
September 30, 2017

Generators

17,073

17,505

Welders
Compressors

2,275
607

2,365
483

Others

2,938

2,429

Total

22,89422,783（2）Sales results by region(Millions of yen)Six months ended
September 30, 2016

RegionSix months ended
September 30, 2017

Japan12,994

13,337

North/Central America
Asia

4,984
3,598

4,936
3,164

Others

1,316

1,345

Total

22,89422,7837