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, 2023
(Based on Japanese GAAP)
November 9, 2023
Company name:

Denyo Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
6517
Representative:
Inquiries:

URL

https://www.denyo.co.jp/President
Director & Managing Executive Officer

Takanori Yoshinaga
Makoto TanabeScheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 10, 2023
December 7, 2023

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
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, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
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%
Six months ended September 30, 2023
34,20121.0
2,167 100.0
2,305
99.3
1,598
99.6
Six months ended September 30, 2022
28,27113.8
1,083 (32.9)
1,157 (31.5)
800 (31.8)
Earnings per share

Diluted earnings per share

Yen
77.46
38.64

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
94,91689,744As of September 30, 2023
As of March 31, 2023

Equity ratio

Millions of yen
72,176
68,658

%
72.9
73.4

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
23.00
24.00

Yen–

Yen
27.00

Yen
50.00

–

29.00

53.00

Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Net sales

Full year

Millions of yen
69,500Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
8.1
5,300
8.7
5,600
8.1
3,800
4.6
184.101

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

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

No
No

Restatement of prior period financial statements:

No(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, 2023

22,859,660 shares As of March 31, 2023

22,859,660 shares

Number of treasury shares at the end of the period
As of September 30, 2023

2,214,254 shares As of March 31, 2023

2,226,890 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

20,637,580 shares Six months ended September 30, 2022

220,723,049 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits

21,331

23,041

Notes receivable - trade
Electronically recorded monetary claims - operating

3,021
4,864

3,216
6,317

Accounts receivable - trade
Securities

14,172
999

13,503999

Merchandise and finished goods
Work in process

5,243
2,103

5,715
2,418

Raw materials and supplies
Other

9,066
719

9,016
468

Allowance for doubtful accounts
Total current assets

(4)

(4)

61,51764,692

Non-current assets
Property, plant and equipment
Buildings and structures, net

8,211

8,268

Machinery, equipment and vehicles, net
Land

1,716
6,494

1,552
6,510

Construction in progress
Other, net

1,643
211

2,004
204

Total property, plant and equipment

18,27818,541Intangible assets
Investments and other assets

831

906

Investment securities
Deferred tax assets

8,669
286

10,282
336

163
(2)

161
(2)

Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

9,118

10,77728,22730,22489,744

94,916

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

10,0472,690

10,0493,550

Short-term borrowings
Accrued expenses

1,882
577

1,882
640

Income taxes payable
Provision for bonuses

671
666

678
772

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

6399

38
113

Other

1,001

1,046

Total current liabilities

17,70018,772Long-term borrowings
Lease liabilities

1,365
328

1,446
350

Deferred tax liabilities
Retirement benefit liability

1,167
513

1,661
498

1010

Non-current liabilities

Other
Total non-current liabilities

3,385

3,96821,085

22,740Share capital
Capital surplus

1,954
1,788

1,954
1,788

Retained earnings
Treasury shares

59,100(2,720)60,120(2,705)

Total shareholders' equity

60,12361,158

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

3,500

4,650

Foreign currency translation adjustment
Remeasurements of defined benefit plans

2,322
(51)

3,472
(43)

Total accumulated other comprehensive income

5,770

8,078

Non-controlling interests

2,764

2,938

Total net assets

68,65872,17689,744

94,916

Total liabilities and net assets

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

Six months ended

September 30, 2022

September 30, 2023

Net sales
Cost of sales

28,271
22,851

34,201
27,554Gross profit

5,419

6,646

Selling, general and administrative expenses

4,336

4,479

Operating profit

1,083

2,167

Interest income
Dividend income

22111

56
122

Rental income from buildings
Share of profit of entities accounted for using equity method

42104212

Other

15

27

Total non-operating income

202261

17974868

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other

146

Total non-operating expenses

129123

1,157

2,305

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

03

Gain on sale of investment securities

390

Total extraordinary income

394

Loss on disposal of non-current assets

08

Total extraordinary losses

08

1,195

2,301

480

785

Extraordinary losses

Profit before income taxes
Income taxes - current
Income taxes - deferred(65)(49)

Total income taxes

414

735

Profit781

1,565

Profit attributable toProfit attributable to owners of parent

800

1,598(19)

(33)

137
2,296

1,146
1,395

237(0)

42,457

2,553

3,238

4,118

2,857
381

3,906
212

Loss 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
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
September 30, 2022

Six months ended
September 30, 2023

Cash flows from operating activities
Profit before income taxes
Depreciation

1,195
606

2,301
613

Interest and dividend income
Interest expenses(134)
17(179)48

Share of loss (profit) of entities accounted for using equity
method(10)(12)

Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables

(39)
3,505

(0)
(430)

Decrease (increase) in inventories
Increase (decrease) in trade payables(2,926)
178

(38)
416

Other, net

578

823

Subtotal

2,972

3,541

Interest and dividends received

146

187

Interest paid
Income taxes paid

(17)
(564)

(47)
(787)

Net cash provided by (used in) operating activities

2,536

2,894

Cash flows from investing activities
Purchase of property, plant and equipment(1,036)(610)

Purchase of intangible assets
Purchase of investment securities

(61)
(1)

(117)
(1)

Proceeds from sale of investment securities
Net decrease (increase) in time deposits

69–

51
(11)

Other, net

(0)

(2)

(1,030)(692)

Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings

149
––
(30)

Purchase of treasury shares
Dividends paid

–
(538)

(0)
(578)

(1)
(9)

(37)
(11)

Net cash provided by (used in) financing activities

(399)

(658)

Effect of exchange rate change on cash and cash equivalents

83

155

Net increase (decrease) in cash and cash equivalents

1,1901,698

Cash and cash equivalents at beginning of period

23,35822,331

Cash and cash equivalents at end of period

24,54824,029Net cash provided by (used in) investing activities
Cash flows from financing activities

Dividends paid to non-controlling interests
Other, net

6Revenue Recongnition[Breakdown of Revenue from Contracts with Customers]（1）Sales results by product(Millions of yen)
Product
Generators
Welders
Compressors
Others
Revenue from contracts
with customers
Other revenue
Net sales to external customers

Six months ended

Six months ended

September 30, 2022

September 30, 2023

Year-on-year
Change%23,2842,138

29,201
2,122

5,917
(15)

25.4
(0.7)

385
2,461

364
2,512(21)50(5.5)
2.1

28,271

34,201

5,930

21.0

－－－－

28,271

34,201

5,930

21.0

（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

Six months ended
September 30, 2022

Year-on-year

Six months ended
September 30, 2023

Change%14,164

15,589

1,424

10.1

14,106
9,551

18,612
13,714

4,506
4,163

31.9
43.6

3,258
1,296

3,281
1,616

23
319

0.7
24.6

28,271

34,201

5,930

21.0

－

－－－

28,271

34,2015,930

21.0

7