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, 2020
(Based on Japanese GAAP)
November 12, 2020
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
November 13, 2020

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

December 9, 2020
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 six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)(1) Consolidated operating results (cumulative)

Six months ended September 30, 2020
Six months ended September 30, 2019Percentages 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%
25,346 (16.0)
2,014 (24.0)
2,167 (18.1)
1,442 (21.1)
30,176
19.5
2,649
84.6
2,646
59.6
1,828
65.1
Earnings per share

Diluted earnings per share

Yen
69.17
87.22

Six months ended September 30, 2020
Six months ended September 30, 2019

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

Millions of yen
74,74775,626Equity ratio

Millions of yen
59,32358,354

%
76.4
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 changes
Profit 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 six months ended September 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 September 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 September 30, 2020

2,006,544 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)
Six months ended September 30, 2020

20,848,623 shares Six months ended September 30, 2019

220,961,513 shares

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

As of September 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

20,054
18,193

20,272
15,260Electronically recorded monetary claims - operating
Securities

2,921
999

2,855
999

Merchandise and finished goods
Work in process

3,920
1,409

5,302
1,324

Raw materials and supplies
Other

5,144
293

5,058
285

Allowance for doubtful accounts
Total current assets

(4)

(5)

52,932

51,354

6,960

6,708

1,883
4,835

1,663
4,831

601
164

1,260
249

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

14,445

14,714

Intangible assetsInvestments and other assets

Total property, plant and equipment

620

588

Investment securities
Other

7,328
302

7,770
323

Allowance for doubtful accounts

(3)

(3)

Total investments and other assets

7,628

8,090

22,694

23,39275,62674,747

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

8,888

7,880

Electronically recorded obligations - operating
Short-term borrowings

1,985
210

1,892
1,268

Accrued expenses
Income taxes payable

541
1,062

443
596

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

638
81

717
42

Provision for product warranties
Other

103
741

112
592

Total current liabilities

14,252

13,546

Non-current liabilities
Long-term borrowings

1,088

–

Lease obligations
Long-term accounts payable - other

282
81

265
81

Deferred tax liabilities
Retirement benefit liability

960
433

1,084
414

Other

172

31

3,019

1,877

17,272

15,423

Share capital
Capital surplus

1,954
1,779

1,954
1,779

Retained earnings
Treasury shares

51,902(2,365)52,824(2,352)

Total shareholders' equity

53,271

54,207

2,575

2,914

248
(32)

12(26)

2,791

2,900

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

2,215

Total net assets

58,35459,32375,62674,747

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Six months ended
September 30, 2019

Six months ended
September 30, 2020

Net sales
Cost of sales

30,17623,18825,346
19,529Gross profit

6,987

5,817

Selling, general and administrative expenses

4,338

3,802

Operating profit

2,649

2,014

Non-operating income
Interest income
Dividend income
Rental income from buildings
Foreign exchange gains
Other23104
41–812483
38
38
28

Total non-operating income

251

213

29
11167
33
1329
118–
11

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
Total extraordinary losses

254

60

2,646

2,167

0218

––218–

19220–

41

0Profit before income taxes

2,822

2,166

Income taxes - current
Income taxes - deferred

878
11658(3)Total income taxes

889

654

1,933

1,512

1,828
105

1,442
70(317)(288)
4339(307)
6(1)

(0)

(602)

38

Comprehensive income

1,330

1,550

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

1,269
60

1,551
(0)

ProfitProfit 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 income

5Consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2019

September 30, 2020

Cash flows from operating activities
Profit before income taxes

2,822

2,166

Depreciation
Interest and dividend income578(127)

527
(107)

29

29

Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sales of investment securities

1678(195)–

Decrease (increase) in trade receivables
Decrease (increase) in inventories

1,394
40

2,897
(1,306)

Increase (decrease) in trade payables
Other, net

(175)
(92)

(1,020)(211)

Subtotal

4,441

2,982

140
(29)

121
(29)

Income taxes paid

(710)

(1,113)

Net cash provided by (used in) operating activities

3,842

1,961

Purchase of property, plant and equipment
Purchase of intangible assets

(787)
(8)

(987)
(16)

Purchase of investment securities
Proceeds from sales of investment securities(1)
390

(1)
–

Interest and dividends received
Interest paid

Cash flows from investing activities

Other, net

(39)

1

Net cash provided by (used in) investing activities(446)(1,003)

Net increase (decrease) in short-term borrowings
Purchase of treasury shares

(219)
(0)

0
(0)

Dividends paid
Dividends paid to non-controlling interests

(479)
(58)

(520)
(74)

Cash flows from financing activities

Other, net–

(7)

Net cash provided by (used in) financing activities

(758)

(602)

Effect of exchange rate change on cash and cash equivalents(55)(137)

Net increase (decrease) in cash and cash equivalents

2,581

217

Cash and cash equivalents at beginning of period

16,17021,054

Cash and cash equivalents at end of period

18,752

21,2726

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

Fiscal year ended
September 30, 2019

Fiscal year ended
September 30, 2020

Year-on-year
Change%Generators

24,167

20,072(4,094)(16.9)

Welders
Compressors

2,434
512

2,206
424

(227)
(88)

(9.4)
(17.2)

Others

3,061

2,642

(418)

(13.7)

Total

30,17625,346(4,829)(16.0)（2）Sales results by region(Millions of yen)
RegionFiscal year ended

Fiscal year ended

September 30, 2019

September 30, 2020

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

17,386
9,509

16,3296,156(1,057)(3,353)(6.1)(35.3)

Asia
Others

2,423
856

1,938
921

(484)
65

(20.0)
7.6

Total

30,17625,346(4,829)(16.0)

7