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, 2020
(Based on Japanese GAAP)
February 10, 2021
Company name:
Denyo Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6517
President

URL

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

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

Toshiya Tozawa
February 12, 2021

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 nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)(1) Consolidated operating results (cumulative)

Nine months ended December 31, 2020
Nine months ended December 31, 2019

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%
38,988 (15.7)
3,431 (22.9)
3,669 (19.1)
2,496 (19.5)
46,256
15.7
4,449
67.8
4,537
54.1
3,102
59.3
Earnings per share

Diluted earnings per share

Yen
119.74147.98Nine months ended December 31, 2020
Nine months ended December 31, 2019

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

Net assets

Millions of yen
76,87275,626Equity ratio

Millions of yen
59,88158,354

%
75.0
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
22.00

Yen––

Yen
24.00

Yen
46.00

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 changesProfit 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
52,000 (17.3)
4,100 (32.3)
4,400 (29.1)
2,800 (31.2)
134.291

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 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 December 31, 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 December 31, 2020

2,006,868 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)
Nine months ended December 31, 2020

20,849,962 shares Nine months ended December 31, 2019

220,965,423 shares

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

As of December 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

20,054
18,193

21,28915,631

Electronically recorded monetary claims - operating
Securities

2,921
999

3,649
999

Merchandise and finished goods
Work in process

3,920
1,409

4,932
1,473

Raw materials and supplies
Other

5,144
293

4,806
347

Allowance for doubtful accounts
Total current assets

(4)

(5)

52,932

53,124

6,960

7,103

1,883
4,835

1,599
4,824

601
164

1,250
238

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

14,44515,016

Intangible assets
Investments and other assets

Total property, plant and equipment

620

580

Investment securities
Other

7,328
302

7,877
276

Allowance for doubtful accounts

(3)

(3)

Total investments and other assets

7,628

8,150

22,69423,74775,62676,872

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2020

As of December 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

8,888

8,648

Electronically recorded obligations - operating
Short-term borrowings

1,985
210

2,335
1,245

Accrued expenses
Income taxes payable541
1,062

538
230

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

638
81

384
61

Provision for product warranties
Other

103
741

117
1,393

Total current liabilities

14,252

14,956

Non-current liabilities
Long-term borrowings

1,088

–

Lease obligations
Long-term accounts payable - other282
81

265
81

Deferred tax liabilities
Retirement benefit liability

960
433

1,238
417

Other

172

31

3,019

2,034

17,272

16,990Share capital
Capital surplus

1,954
1,779

1,954
1,779

Retained earnings
Treasury shares

51,902(2,365)53,402(2,352)

Total shareholders' equity

53,27154,784

2,575

3,043

248
(32)

(117)
(22)

2,791

2,903

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

2,192

Total net assets

58,35459,88175,62676,872

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, 2019

Nine months ended
December 31, 2020

Net sales
Cost of sales

46,25635,42838,98829,698Gross profit

10,828

9,289

Selling, general and administrative expenses
Operating profit

6,378
4,449

5,858
3,431

36
155
60
–
–
91

33
127
58
37
16
41

343

314

42
17
146
32
17
256

42
18
–
–
15
76

4,537

3,669

0218

040

218

40

40
224
–

Non-operating income
Interest income
Dividend income
Rental income from buildings
Foreign exchange gains
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Share of loss of entities accounted for using equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on sales of investment securities

624Profit before income taxes

Total extraordinary losses

4,692

3,705

Income taxes - current
Income taxes - deferred

1,229
170

972
146

Total income taxes

1,399

1,119

Profit

3,292

2,586

3,102
190

2,496
89(18)(370)
7468(479)
100(0)

Profit attributable toProfit attributable to owners of parent
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

(380)

(1)

Comprehensive income

Total other comprehensive income

2,912

2,585

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

2,775
136

2,608
(23)

5

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

Nine months ended
December 31, 2019

Nine months ended
December 31, 2020

Year-on-year
Change%Generators

37,14331,013(6,129)(16.5)

Welders
Compressors

3,714751

3,216
578

(498)
(172)

(13.4)(22.9)

Others4,6484,179(468)(10.1)

Total

46,25638,988(7,268)(15.7)（2）Sales results by region(Millions of yen)
RegionNine months ended

Nine months ended

December 31, 2019

December 31, 2020

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

26,853
13,90626,1908,381(662)(5,525)(2.5)(39.7)

Asia
Others

4,100
1,396

2,988
1,427

(1,112)31(27.1)
2.2

Total

46,25638,988(7,268)(15.7)

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