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 Three Months Ended June 30, 2022
(Based on Japanese GAAP)
August 4, 2022
Company name:
Denyo Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6517
President

URL

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

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

Makoto Tanabe
August 5, 2022

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

Holding of quarterly financial results meeting:

NoTEL

03-6861-1111(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2022
Three months ended June 30, 2021

Millions of yen12,791
11,973

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
6.8
336 (60.3)
410 (52.2)
260 (55.1)(8.4)
847 (22.7)
857 (29.4)
581 (31.3)

Earnings per share

Diluted earnings per share

Yen
12.59
27.87

Three months ended June 30, 2022
Three months ended June 30, 2021

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2022
As of March 31, 2022

Net assets

Millions of yen80,53080,774

Equity ratio

Millions of yen
64,12863,760%76.6
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

Yen–

Yen
25.00

Yen
47.00

23.00

–

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)
Percentages indicate year-on-year changes
Profit attributable toNet salesOperating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
26,0004.7
1,300 (19.5)
1,500 (11.2)
1,000 (14.8)
48.26
September 30, 2022
Full year
57,500
4.2
3,900
6.7
4,200
4.2
2,800
1.7
135.141

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(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:

NoNo

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 June 30, 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 June 30, 2022

2,137,378 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)
Three months ended June 30, 2022

20,719,612 shares Three months ended June 30, 2021

220,855,713 shares

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

As of June 30, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

22,3584,102

23,6492,873

Electronically recorded monetary claims - operating
Accounts receivable - trade

4,306
11,856

4,770
8,950

Securities
Merchandise and finished goods

999
5,086

999
5,210

Work in process
Raw materials and supplies

1,724
6,049

2,607
7,160

392
(4)

518
(3)

56,872

56,735

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

7,140
2,011

7,225
1,926

Land
Construction in progress

5,066
319

5,074
323

226

228

14,764

14,778694

697

Investments and other assets
Investment securities

8,092

7,941

Deferred tax assets
Other226
127

228
150

Allowance for doubtful accounts

(2)

(2)

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

Other, net
Total property, plant and equipment
Intangible assets

Total investments and other assets
Total non-current assets
Total assets

3

8,443

8,318

23,902

23,79480,77480,530(Millions of yen)
As of March 31, 2022

As of June 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

9,026

8,039

2,554
210

2,583210

Accrued expenses
Income taxes payable

553
404

1,142
202

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

642
66

386
16

Provision for product warranties
Other

98
713

93
969

Electronically recorded obligations - operating
Short-term borrowings

Total current liabilities

14,26913,643

Non-current liabilities
Long-term borrowings

856

956

Lease liabilities
Deferred tax liabilities

283
1,113

295
1,027

Retirement benefit liability
Other458
31446
31Total non-current liabilities

2,744

2,758

17,013

16,401Shareholders' equity
Share capital

1,954

1,954

Capital surplus
Retained earnings

1,788
56,5001,788
56,223

Treasury shares(2,598)(2,596)

Total shareholders' equity

57,64557,370

3,209
591

3,133
1,161

Total liabilities
Net assets

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

(33)

(18)

3,766

4,277

Non-controlling interests

2,348

2,481

Total net assets

63,76064,12880,77480,530

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Three months ended
June 30, 2021

Three months ended
June 30, 2022

Net sales

11,973

12,791

Cost of sales

9,176

10,283Gross profit

2,797

2,508

Selling, general and administrative expenses

1,950

2,171

Operating profit

847

336

Non-operating income
Interest income

1011

Dividend income
Rental income from buildings

59
2082
20

Other

17

5

Total non-operating income

108

120

Interest expenses
Foreign exchange losses

1260

52

Share of loss of entities accounted for using equity method
Other

19428
9

Total non-operating expenses

9746857

410

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

025–
14

Total extraordinary income

26

1435

0

35

0

Profit before income taxes

848

424

Income taxes - current
Income taxes - deferred

307
(41)

236
(61)

Total income taxes

265

174

Profit582

249

Profit attributable to owners of parent
Profit (loss) attributable to non-controlling interests

581
1260
(11)

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

(211)

(75)

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

868
2714
150(0)

660

654

Comprehensive income

1,243

904

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,122

771

120

133

Non-operating expenses

Ordinary profit
Extraordinary income

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

Profit attributable to

Share of other comprehensive income of entities accounted
for using equity methodTotal other comprehensive income

Comprehensive income attributable to non-controlling interests

5Revenue Recongnition[Breakdown of Revenue from Contracts with Customers]（1）Sales results by product(Millions of yen)
ProductThree months ended
June 30, 2021

Year-on-year

Three months ended
June 30, 2022

Change%Generators

9,343

10,232888

9.5

Welders
Compressors

1,170
221

1,158
162

(12)
(58)

(1.0)
(26.6)

Others

1,237

1,237

0

0.0

Revenue from contracts
with customers

11,973

12,791817

6.8

Other revenue
Net sales to external customers----

11,97312,791

817

6.8

（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

Three months ended

Three months ended

June 30, 2021

June 30, 2022

Year-on-year
Change%

7,385
4,588

6,581
6,210

(804)
1,622

(10.9)
35.4

2,798
1,077

4,149
1,539

1,351
462

48.3
42.9

712

521

(190)

(26.8)

11,973

12,791

817

6.8

----

11,973

12,791817

6.8

6