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, 2019
(Based on Japanese GAAP)
February 13, 2020
Company name:
Denyo Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6517
President

URL

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

Inquiries:
Director & Managing Executive Officer
Scheduled date to file Quarterly Securities Report:

Toshiya Tozawa
February 14, 2020

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

Holding of quarterly financial results meeting:

No

TEL

03-6861-1111(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2019 (from April 1, 2019 to December 31, 2019)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended December 31, 2019
Nine months ended December 31, 2018

Millions of yen
46,25639,982

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
15.7
4,449
67.8
4,537
54.1
3,102
59.3
10.5
2,651
(1.0)
2,945
3.3
1,947
7.2

Earnings per share

Diluted earnings per shareYen
147.9891.88

Nine months ended December 31, 2019
Nine months ended December 31, 2018

Yen––(2) Consolidated financial position
Total assets
As of December 31, 2019
As of March 31, 2019

Net assets

Millions of yen
76,83774,085Equity ratio

Millions of yen
58,19956,290

%
72.9
73.1

2. Cash dividends
Annual dividends per share

Year ended March 31, 2019Year ending March 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
20.00
22.00

Yen––

Yen
22.00

Yen
42.00

22.00

44.00

Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
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
59,500
7.1
5,200
23.8
5,400
17.6
3,600
13.7
171.701

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2019(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:

Yes
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 December 31, 201922,859,660 shares As of March 31, 201922,859,660 shares

Number of treasury shares at the end of the period
As of December 31, 2019

1,884,630 shares As of March 31, 2019

1,901,761 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2019

20,965,423 shares Nine months ended December 31, 20182

21,195,433 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of December 31, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

15,18919,25017,52918,223

Electronically recorded monetary claims - operating
Securities

3,503
999

4,324999

Merchandise and finished goods
Work in process

4,258
1,236

4,055
1,436

Raw materials and supplies
Other

5,152
263

5,942
296

Allowance for doubtful accounts
Total current assets

(5)

(4)

49,84952,804

7,303

6,971

1,989
4,834

1,841
4,832

101
184

602
161

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

14,414

14,410Intangible assets
Investments and other assets

Total property, plant and equipment

364

612

Investment securities
Other9,104
358

8,714
301

Allowance for doubtful accounts

(5)

(5)

Total investments and other assets

9,457

9,010

24,23624,03374,08576,837

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2019

As of December 31, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade

9,296

10,161

2,146
431

2,429
210

Accrued expenses
Income taxes payable

670
538

679
553

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

636
75366
55

Provision for product warranties
Other99728

75
608

Electronically recorded obligations - operating
Short-term borrowings

Total current liabilities

14,624

15,141

Non-current liabilities
Long-term borrowings

1,110

1,095

Lease obligations
Deferred tax liabilities

0
1,323

282
1,450

432
304

400
267

Retirement benefit liability
Other
Total non-current liabilities

3,170

3,496

17,794

18,638

Shareholders' equity
Share capital

1,954

1,954

Capital surplus
Retained earnings

1,779
48,793

1,779
50,933

Total liabilities
Net assets

Treasury shares(2,107)(2,089)Total shareholders' equity

50,42052,578

3,464
301

3,446
(14)

(32)

(25)

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

3,732

3,406

Non-controlling interests

Total accumulated other comprehensive income

2,137

2,214

Total net assets

56,29058,19974,08576,837

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)
Nine months ended
December 31, 2018

Nine months ended
December 31, 2019

Net sales

39,982

46,256

Cost of sales

30,84235,428Gross profit

9,140

10,828Selling, general and administrative expenses

6,488

6,378

Operating profit

2,651

4,449

30

36

Dividend income
Rental income from buildings

15062

15560

Share of profit of entities accounted for using equity method
Foreign exchange gains

47
16––

Other

47

91

Total non-operating income

354

343

Interest expenses
Sales discounts

321642
17

Share of loss of entities accounted for using equity method
Foreign exchange losses

––146
32

Other

1217

Non-operating income
Interest income

Non-operating expenses

Total non-operating expenses

61

256

2,945

4,53700

Gain on sales of investment securities

3218

Total extraordinary income

4218

3107

40–

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

Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on sales of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current

12211262

2,836

4,6926921,229

Income taxes - deferred

50

170

Total income taxes

743

1,399

Profit

2,093

3,292

Profit attributable toProfit attributable to owners of parent

1,947

3,102145

190

Profit attributable to non-controlling interests

5

(Millions of yen)
Nine months ended

Nine months ended

December 31, 2018

December 31, 2019

Other comprehensive incomeValuation difference on available-for-sale securities(1,097)(18)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(228)
10(370)7(0)0(1,317)

(380)

776

2,912

674101

2,775
136

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

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

Nine months ended
December 31, 2018

Nine months ended
December 31, 2019Year-on-year
Change%Generators

31,22337,143

5,919

19.0

Welders
Compressors

3,746
862

3,714
751

(31)
(111)

(0.9)
(12.9)

Others

4,150

4,648

497

12.0

Total

39,982

46,256

6,274

15.7

（2）Sales results by region(Millions of yen)
RegionNine months ended

Nine months ended

December 31, 2018

December 31, 2019Year-on-year
Change%Japan
North/Central America

24,322
10,163

26,853
13,906

2,530
3,742

10.4
36.8

Asia
Others

3,883
1,612

4,100
1,396

216
(215)

5.6
(13.4)

Total

39,982

46,256

6,274

15.7

7