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 Year Ended March 31, 2018
(Based on Japanese GAAP)May 10, 2018
Company name:

Denyo Co., Ltd.

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

URL

http://www.denyo.co.jp/President
Senior Executive Officer

Shoichi Shiratori
Toshiya Tozawa

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 28, 2018
June 29, 2018

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

June 7, 2018
Yes

Holding of financial results meeting:

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 year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(1) Consolidated operating results
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%
Year ended March 31, 2018
50,182
2.7
3,902(8.1)
4,187(7.5)
2,762(3.7)
Year ended March 31, 2017
48,851(3.1)
4,247
3.7
4,526
0.7
2,867(8.6)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofsales
assetsparent/equity
Yen%%%
–
5.3
5.9
7.8
–
5.7
6.7
8.7

Diluted earnings pershare

Earnings per share
Yen
130.03134.18Year ended March 31, 2018Year ended March 31, 2017(2) Consolidated financial position

Total assets
As of March 31, 2018
As of March 31, 2017

Net assets

Equity ratio

Millions of yen
72,58868,678Millions of yen
56,13253,145

Cash flows fromoperating activities
Millions of yen
3,315
2,948

Cash flows frominvesting activities
Millions of yen(1,121)(1,253)

Net assets per share%
74.5
74.4

Yen
2,545.17
2,407.30(3) Consolidated cash flows

Year ended March 31, 2018Year ended March 31, 2017

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(738)
13,712(1,080)12,2192. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2017
Year ended March 31, 2018Year ending March 31, 2019
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%

%

––

15.00
15.00

––

15.00
25.00

30.00
40.00

665883

22.4
30.8

1.3
1.6–20.00–20.00

40.00

126.6

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)

Net sales
Millions of yen
Six months ending
September 30, 2018
Full year

Percentages 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

23,700

4.0

1,650

15.1

1,800

17.9

1,150

21.5

54.14

52,700

5.0

4,600

17.9

4,900

17.0

3,200

15.9

150.64

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2018

22,859,660 shares As of March 31, 2017

22,859,660 shares

Number of treasury shares at the end of the period
As of March 31, 2018

1,617,052 shares As of March 31, 2017

1,623,221 shares

21,240,831 shares Year ended March 31, 2017

21,370,441 shares

Average number of shares during the period
Year ended March 31, 20182

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of March 31, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

11,937
19,42013,87021,479Securities
Merchandise and finished goods

999
6,110

999
5,254

Work in process
Raw materials and supplies

1,101
3,493

1,184
3,312

541
217

488
242

Deferred tax assets
Other
Allowance for doubtful accounts

(6)

(6)

43,814

46,825

12,246

12,716

Accumulated depreciation(5,228)(5,595)

Buildings and structures, net

7,018

7,121

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

Machinery, equipment and vehicles

6,700

6,696Accumulated depreciation(4,383)(4,906)

Machinery, equipment and vehicles, net

2,317

1,789

Land

4,848

4,841

Construction in progress
Other

140
1,793

197
1,878

(1,618)(1,681)

174

196

Accumulated depreciation
Other, net

14,49914,147

Intangible assets
Leasehold right

Total property, plant and equipment

358

341

Software
Other

156
32

123
6

Total intangible assets

547

471

Investments and other assets
Investment securities

9,525

10,822Long-term loans receivable
Deferred tax assets

1461

1073

Other
Allowance for doubtful accounts

218(2)243(5)Total investments and other assets

9,817

11,14324,86325,762

68,67872,588

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2017

As of March 31, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade

8,937

9,554

Short-term loans payable
Accrued expenses

210
556

210
595

Income taxes payable
Provision for bonuses

630
632

473
648

Provision for directors' bonuses
Provision for product warranties

70108

74108

Other450

655

11,596

12,319Long-term loans payable
Lease obligations1,122
5

1,062
2

Long-term accounts payable - other
Deferred tax liabilities

91
1,907

81
2,256

418
390

486
247

Total current liabilities
Non-current liabilities

Net defined benefit liability
Other
Total non-current liabilities

3,936

4,136

15,532

16,455

Shareholders' equity
Capital stock

1,954

1,954

Capital surplus
Retained earnings

1,779
44,521

1,779
46,620Total liabilities
Net assets

Treasury shares(1,632)(1,621)

Total shareholders' equity

46,623

48,733

3,735
764

4,617
756

(1)

(40)

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

4,498

5,332

Non-controlling interests

Total accumulated other comprehensive income

2,023

2,066

Total net assets

53,14556,132

68,67872,588

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018

Net sales
Cost of sales

48,85136,87350,182
38,099Gross profit11,977

12,082

Selling, general and administrative expenses

7,730

8,180

Operating profit

4,247

3,902

26
156
87
91
66

39
153
7299
49

428

414

65
34
13919650
637
920
4149

129

4,526

4,187

2–

142

53–
0

733–

Non-operating income
Interest income
Dividend income
House rent income
Share of profit of entities accounted for using equity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Commitment fee
Foreign exchange losses
Cost of lease revenue
Sales discounts
Miscellaneous loss
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 valuation of investment securities
Other

3

41

Profit before income taxes

Total extraordinary losses

4,526

4,150

Income taxes - current
Income taxes - deferred

1,471
(8)

1,237
15

Total income taxes

1,463

1,252

Profit

3,062

2,898

2,867
194

2,762
136

719(421)
(2)

880
(27)
(39)

2

1

297815Comprehensive income

3,359

3,714

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

3,208
150

3,596
117

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
Total other comprehensive income5Consolidated statements of changes in equity
Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

1,954

Retained earnings

1,779

Total shareholders'equityTreasury shares

42,343(1,381)

44,697

Changes of items during period
Dividends of surplus

(689)

(689)

Profit attributable to ownersof parent

2,867

2,867

Purchase of treasury shares

(265)

(265)

Disposal of treasury shares

1414

Net changes of items otherthan shareholders' equity
Total changes of items duringperiod
Balance at end of current
period––

2,177

(251)

1,926

1,954

1,779

44,521(1,632)

46,623

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period3,014

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

1,142

0

Total
accumulated
othercomprehensive
income4,157

Non-controlling
Total net assetsinterests

1,957

50,812

Changes of items during period
Dividends of surplus(689)

Profit attributable to ownersof parent

2,867

Purchase of treasury shares(265)

Disposal of treasury shares

14

Net changes of items otherthan shareholders' equity

721

(377)

(2)

341

65

406

Total changes of items during
period

721

(377)

(2)

341

65

2,333

3,735

764

(1)

4,498

2,023

53,145

Balance at end of current
period6

Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

1,954

Retained earnings

1,779

Total shareholders'equityTreasury shares

44,521(1,632)

46,623

Changes of items during periodDividends of surplus

(662)

(662)

Profit attributable to ownersof parent

2,762

2,762

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

1111

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

–

–

2,099

10

2,109

1,954

1,779

46,620(1,621)

48,733

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period3,735

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefitplans764

(1)

Total
accumulated
othercomprehensive
income4,498

Non-controlling
Total net assetsinterests

2,023

53,145

Changes of items during period
Dividends of surplus(662)

Profit attributable to ownersof parent

2,762

Purchase of treasury shares(0)

Disposal of treasury shares

11

Net changes of items otherthan shareholders' equity

881

(8)

(39)

834

43877

Total changes of items during
period

881

(8)

(39)

834

43

2,987

4,617

756

(40)

5,332

2,066

56,132

Balance at end of current
period7Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on valuation of investment securities

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018
4,526

4,150

1,211

1,198

(91)

(99)

–33

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for product warranties

(26)
(13)

140

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses10(7)154Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

(21)
(183)

1(192)

65(2)500Loss (gain) on disposal of non-current assets
Decrease (increase) in notes and accounts receivable - trade3(197)

6(2,094)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

(518)
(922)

896
617

Interest expenses
Loss (gain) on sales of non-current assets

Other, net

218

(44)

Subtotal

4,050

4,560

Interest and dividend income received

194

202

Interest expenses paidIncome taxes paid

(65)
(1,231)(50)(1,396)

Net cash provided by (used in) operating activities

2,948

3,315

Cash flows from investing activities
Purchase of property, plant and equipment

(537)

(680)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

7(50)

2(16)

Purchase of investment securities
Proceeds from sales of investment securities

(2)
–(2)
29

Payments of loans receivableCollection of loans receivable

(4)
7(1)
5(674)
1(457)(0)

Net cash provided by (used in) investing activities(1,253)(1,121)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

(22)

0

Purchase of treasury shares
Cash dividends paid

(265)
(689)

(0)
(662)

Dividends paid to non-controlling interests
Other, net

(85)
(16)

(74)
–Net cash provided by (used in) financing activities(1,080)(738)

Effect of exchange rate change on cash and cash equivalents

(141)

37

Net decrease (increase) in time deposits
Other, net

Net increase (decrease) in cash and cash equivalents

473

1,493

Cash and cash equivalents at beginning of period

11,745

12,219Cash and cash equivalents at end of period

12,21913,712

8Supplementary information（1）Sales results by product(Millions of yen)
Fiscal year ended
March 31, 2017

Product

Fiscal year ended
March 31, 2018

Generators

36,85738,653Welders
Compressors

4,832
1,440

4,919
1,083

Others

5,720

5,525

Total

48,85150,182（2）Sales results by region(Millions of yen)
Fiscal year ended
March 31, 2017

RegionFiscal year ended
March 31, 2018Japan

29,252

31,211

North/Central America
Asia

10,3106,479

10,382
5,938

Others

2,808

2,648

Total

48,85150,1829