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, 2020
(Based on Japanese GAAP)
August 6, 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
August 7, 2020

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, 2020 (from April 1, 2020 to June 30, 2020)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2020Three months ended June 30, 2019

Millions of yen13,070
13,552

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(3.6)
1,095
36.9
1,216
64.3
846 102.9
14.4
799
33.6
740
5.9
417
(9.1)

Earnings per share

Diluted earnings per share

Yen
40.60
19.91

Three months ended June 30, 2020Three months ended June 30, 2019

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2020
As of March 31, 2020

Net assets

Millions of yen
74,58575,626Equity ratio

Millions of yen
58,62458,354%75.7
74.1

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
22.00

Yen–

Yen
24.00

Yen
46.00

22.00

–

24.00

46.00

Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profitEarnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Six months ending
26,000 (13.8)
1,700 (35.8)
1,900 (28.2)
1,300 (28.9)
62.37
September 30, 2020
Full year
58,000(7.8)
4,900 (19.1)
5,200 (16.2)
3,500 (14.0)
167.91

1

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2020(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 June 30, 2020

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 June 30, 2020

2,013,245 shares As of March 31, 2020

2,014,745 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2020

20,844,931 shares Three months ended June 30, 2019

220,957,919 shares

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

As of June 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

20,054
18,19319,062
16,249

Electronically recorded monetary claims - operating
Securities

2,921
999

2,931
999

Merchandise and finished goods
Work in process

3,920
1,409

4,863
1,530

Raw materials and supplies
Other

5,144
293

5,530
360

Allowance for doubtful accounts
Total current assets

(4)

(3)

52,932

51,523

6,960

6,771

1,883
4,835

1,763
4,824

601
164

960
158

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

14,445

14,479Intangible assets
Investments and other assets

Total property, plant and equipment

620

597

Investment securities
Other

7,328
302

7,707
280

Allowance for doubtful accounts

(3)

(3)

Total investments and other assets

7,628

7,984

22,69423,06175,626

74,585

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2020

As of June 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

8,888

8,180

Electronically recorded obligations - operating
Short-term borrowings

1,985
210

1,872
1,287

Accrued expenses
Income taxes payable

541
1,062

1,075
266

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

638
81

374
21

Provision for product warranties
Other

103
741

110
973

Total current liabilities

14,252

14,161

Non-current liabilities
Long-term borrowings

1,088

–

Lease obligations
Long-term accounts payable - other

282
81

263
81

Deferred tax liabilities
Retirement benefit liability

960
433

1,013
408

Other

172

31

3,019

1,798

17,272

15,960Share capital
Capital surplus

1,954
1,779

1,954
1,779

Retained earnings
Treasury shares

51,902(2,365)52,229(2,364)

Total shareholders' equity

53,27153,599

2,575

2,883

248
(32)

(16)
(29)

2,791

2,838

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

2,187

Total net assets

58,354

58,62475,626

74,585

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, 2019

Three months ended
June 30, 2020

Net sales

13,552

13,070

Cost of sales

10,562

10,147Gross profit

2,990

2,922

Selling, general and administrative expenses

2,190

1,827

Operating profit

799

1,095

Non-operating income
Interest income

1013

Dividend income
Rental income from buildings

83
1961
19

Foreign exchange gains
Other–
7765
5

Total non-operating income

191

165

1214Sales discounts
Foreign exchange losses

5346–

Share of loss of entities accounted for using equity method
Other194420
4

Total non-operating expenses

251

45740

1,216

Gain on sales of non-current assets

0–

Total extraordinary income

0–20

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets

20

Profit before income taxes

Total extraordinary losses

738

1,216

Income taxes - current

333

315

Income taxes - deferred

(61)

(13)

Total income taxes

271301

Profit466

914

Profit attributable toProfit attributable to owners of parent

417

846

4968(74)169

308(379)

23(0)

(0)

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

96(67)

563

846

489
73

893
(46)

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

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

Fiscal year ended
June 30, 2019

Fiscal year ended
June 30, 2020

Year-on-year
Change%Generators

10,52010,365

(155)

(1.5)

Welders
Compressors

1,216
263

1,178
266(37)2(3.1)
0.8

Others

1,551

1,259(291)(18.8)

Total

13,552

13,070

(482)

(3.6)

（2）Sales results by region(Millions of yen)
RegionFiscal year ended

Fiscal year ended

June 30, 2019

June 30, 2020

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

7,267
4,584

7,204
4,081(63)
(502)

(0.9)
(11.0)

Asia
Others

1,292
408

1,250
533(41)
124

(3.2)
30.6

Total

13,552

13,070(482)(3.6)

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