Consolidated Financial Results
for the Three Months Ended June 30, 2021
[Japanese GAAP]
July 27, 2021
Company name: Daihatsu Diesel Mfg. Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 6023
URL: http://www.dhtd.co.jp
Representative: Yoshinobu Hotta, President
Contact: Takashi Mizushina, Director and Managing Executive Officer
Phone: +81-6-6454-2331
Scheduled date of filing quarterly securities report: August 6, 2021
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021 to June 30, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2021
11,656
(8.1)
96
135
201
June 30, 2020
12,689
7.5
(111)
(115)
(160)
(Note) Comprehensive income: Three months ended June 30, 2021: 191 million yen [-%]
Three months ended June 30, 2020: (170) million yen [-%]
Basic earnings per share

Three months ended
June 30, 2021
June 30, 2020
(2) Consolidated Financial Position
Total assets

Diluted earnings per share
Yen

Yen

6.35
(5.06)-Net assets

Million yen

Equity ratio

Million yen%

40,892
41,21450.7
51.2

As of June 30, 2021
80,613As of March 31, 2021
80,381(Reference) Equity: As of June 30, 2021: 40,845 million yen
As of March 31, 2021: 41,166 million yen
2. Dividends

Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen
Yen
Yen
Fiscal year ended
March 31, 2021
0.00
Fiscal year ending
March 31, 2022
Fiscal year ending
March 31, 2022
0.00
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None

Year-end

Total
Yen

Yen

15.00

15.00

15.00

15.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 toMarch 31, 2022)(% indicates changes from the previous corresponding period.)
Net sales
Million yen

Operating profit%

Million yen

Ordinary profit% Million yen%

First half
24,000 (4.5)
0 (100.0)
0 (100.0)
Full year
55,000 (3.1)
1,300
30.7
1,200
4.4
(Note) Revision to the financial results forecast announced most recently: None

Profit attributableto owners of parent
Million yen
01,000

Basic earnings
per share%(100.0)
40.4

Yen
0.00
31.39

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in changes in scope of consolidation): No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2021: 31,850,000 shares
March 31, 2021: 31,850,000 shares2) Total number of treasury shares at the end of the period:
June 30, 2021: 170,935 shares
March 31, 2021: 90,935 shares
3) Average number of shares during the period:
Three months ended June 30, 2021: 31,725,659 shares
Three months ended June 30, 2020: 31,740,531 shares* These quarterly financial results are outside the scope of quarterly review procedures conducted by a certified
public accountant or audit corporation.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecasts and other forward-looking statements herein are based on information and certain
assumptions deemed reasonable as of the date of publication of this document. Actual results may differ
significantly from these forecasts due to a wide range of factors. Please refer to “Explanation of Consolidated
Financial Results Forecast and Other Forward-looking Information” on page 3 of the attached material for theassumptions the financial results forecasts are based on, and notes on their use.

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review........................................... 2(1) Explanation of Operating Results ..................................................................................................................... 2(2) Explanation of Financial Position ..................................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ................. 3
2. Quarterly Consolidated Financial Statements and Primary Notes .......................................................................... 4(1) Quarterly Consolidated Balance Sheets ............................................................................................................ 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................................... 6(3) Notes to the Quarterly Consolidated Financial Statements ............................................................................... 8(Notes on going concern assumption) ................................................................................................................ 8(Notes in the case of significant changes in shareholders’ equity) ..................................................................... 8(Changes in accounting policy) .......................................................................................................................... 8(Segment information, etc.) ................................................................................................................................ 9
3. Supplementary Information .................................................................................................................................. 11(1) Status of Production, Orders Received, and Sales .......................................................................................... 111

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the three months under review (from April 1, 2021 to June 30, 2021), the Japanese economy remainedin a severe condition due to the cooling of economic activities brought about by factors including the declarationof a third state of emergency in response to the spread of the novel coronavirus (COVID-19) and theimplementation of priority measures placed in order to prevent the spread of the virus. Despite the roll-out of thevaccine across Japan, there are also concerns over a resurgence of infections due to a new variant of the virus.
Further, although the recovery of the global economy from the coronavirus crisis is picking up pace in the UnitedStates and China, there are some regions in emerging countries where the rise in the number of infections has notbeen curbed, causing the outlook of the global economy to remain uncertain.
In the shipbuilding and maritime industry, the primary industry in which the Company makes its sales,
although the outlook with regard to demand remains uncertain as a result of the spread of COVID-19, demandfor container ships is expanding against a backdrop of continued demand from people consuming and working
from home. Meanwhile, in regions such as Southeast Asia, with lockdowns, restrictions on movement, and otherrestrictive measures in place, a full-fledged recovery in maintenance demand has not yet materialized.
Under such a corporate environment, consolidated net sales decreased by 8.1% year-on-year to 11,656 million
yen. In terms of profit, the Company recorded operating profit of 96 million yen (operating loss of 111 million
yen in the previous corresponding period), ordinary profit of 135 million yen (ordinary loss of 115 million yen
in the previous corresponding period), and profit attributable to owners of parent of 201 million yen (lossattributable to owners of parent of 160 million yen in the previous corresponding period).
Performance by business segment of the Company and the consolidated Group are as follows.
<Internal combustion engines>
1. Marine-use
Net sales decreased by 15.7% year-on-year to 9,772 million yen, but segment income increased by 9.5% yearon-year to 837 million yen, due to factors such as an improvement in sales for commercial use despite areduction in sales of engines primarily to the Ministry of Defense.
2. Land-use
Net sales increased by 123.0% year-on-year to 991 million yen while a segment loss of 285 million yen wasrecorded (compared to a segment loss of 339 million yen in the previous fiscal year) due to an increase insales of engines and maintenance-related sales and other factors.
Consequently, net sales for the segment decreased by 10.5% year-on-year to 10,764 million yen, and segment
income increased by 29.7% year-on-year to 551 million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, both net sales and segment income rose due to an increase in sales
volume.
2. Real estate leasing-related
In real estate leasing-related, net sales decreased slightly while segment income decreased.
3. Electricity sales-related
In electricity sales-related, both net sales and segment income decreased.
4. Precision parts-related
In precision parts-related, net sales decreased and segment loss contracted.
Consequently, net sales for the segment increased by 35.4% year-on-year to 892 million yen, and segment
income increased by 208.2% year-on-year to 98 million yen.

2(2) Explanation of Financial Position
In assets as of the end of the first quarter under review, cash and deposits increased by 4,970 million yen fromthe end of the previous fiscal year. Further, inventories rose by 1,260 million yen from the end of the previous
fiscal year. Meanwhile, due to progress made in collection of trade receivables at the end of the previous fiscal
year, notes and accounts receivable – trade, and contract assets decreased by 5,416 million yen from the end of
the previous fiscal year. As a result, total assets increased by 231 million yen from the end of the previous fiscal
year to 80,613 million yen.
In liabilities, notes and accounts payable - trade and electronically recorded obligations - operating in total
increased by 593 million yen from the end of the previous fiscal year. Meanwhile, owing to scheduled payment,
short-term borrowings and long-term borrowings in total decreased by 424 million yen. As a result, total liabilities
increased by 554 million yen from the end of the previous fiscal year to 39,721 million yen.
In net assets, retained earnings decreased by 274 million yen due mainly to payment of cash dividends. As aresult, total net assets decreased by 322 million yen from the end of the previous fiscal year to 40,892 million
yen.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
As to the consolidated financial results forecast for the fiscal year ending March 31, 2022, no revisions havebeen made to the forecast announced on April 28, 2021.
The forecasts stated herein are based on information available to the Company as of the date of publicationof this document. Actual results may differ from these forecasts due to a wide range of factors that may arise in
the future.

3

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Notes and accounts receivable - trade, and contract
assetsInventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

As of June 30, 2021

20,327
17,97025,298--12,553

10,7251,639(11)50,651

11,9861,470(9)51,298

9,646
5,914
5,084
387
891
21,925
942

9,513
5,741
5,084
379
805
21,524
868

2,669
0
3,677
570
(55)
6,862
29,73080,381

2,715
0
3,747
515
(55)
6,922
29,31580,613

(Million yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable – trade
Electronically recorded obligations – operating
Short-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Accrued expenses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total 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
Total net assets
Total liabilities and net assets

5

As of June 30, 2021

5,373
4,172
6,545
441
473
625
6
3,271
1,193
22,103

5,743
4,395
6,303
415
100
211
12
3,101
2,501
22,786

6,711
482

6,528
431

66

26

7,225
193
2,384
17,06339,167

7,362
193
2,391
16,93439,7212,434
2,171
36,901(42)
41,4652,434
2,171
36,627(80)
41,152

247
(36)
(509)
(298)
47
41,21480,381

233
10
(551)
(306)
46
40,89280,613

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
For the three months ended June 30(Million yen)
For the three months
ended June 30, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOutsourcing service income
Reversal of allowance for doubtful accounts
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Miscellaneous losses
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on abandonment of non-current assets
Total extraordinary losses
Profit (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent

6

For the three months
ended June 30, 2021

12,68910,525
2,163

11,656
9,282
2,374

1,706
568
2,275
(111)

1,724
553
2,277
96

0
16

1
26

－

25

1
1
35
55

10
1
13
78

23

21

21

－

5
8
58
(115)

14
3
39
135

0
－
0

0
125
125

0
4
4
(120)
102
(59)
43
(163)
(2)
(160)

－
2
2
259
104
(46)
58
200
(1)
201

Quarterly Consolidated Statements of Comprehensive Income
For the three months ended June 30(Million yen)
For the three months
ended June 30, 2020
Profit (loss)
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 ofparentComprehensive income attributable to non-controllinginterests

7

For the three months
ended June 30, 2021

(163)

200

11
(3)
27

(13)
8
(42)

(41)

39

(7)
(170)

(8)
191

(168)

193

(2)

(1)

(3) Notes to the Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Notes in the case of significant changes in shareholders’ equity)
For the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)
There is no relevant information.
(Changes in accounting policy)(Application of Accounting Standard for Revenue Recognition, etc.)“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafterreferred to as the “Revenue Recognition Accounting Standard”) has been applied from the beginning of this firstquarter under review, whereby revenue shall be recognized by the amount of money expected to be received in
exchange for goods or services at the point where control of the agreed goods or services is transferred to thecustomer.
Further, alternative treatments as stipulated in Paragraph 98 of the “Implementation Guidance on AccountingStandard for Revenue Recognition” have been applied to domestic sales of merchandise or products, for whichrevenue will be recognized at the point of shipment if the period from shipping to the point where control of themerchandise or products is transferred to the customer is a standard period.
The application of the Revenue Recognition Accounting Standard, etc. has been in accordance with thetransitional treatment stipulated in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard,
whereby the cumulative effects of retroactively applying the new accounting policy prior to the beginning of thisfirst quarter under review has been added to, or subtracted from, the retained earnings at the beginning of this firstquarter, with the new accounting policy being applied from the balance at the beginning of the period. However,by applying the method stipulated in Paragraph 86 of the Revenue Recognition Accounting Standard, the new
accounting policy has not been retroactively applied to contracts for which almost all revenue amounts had beenrecognized in accordance with the previous treatment prior to the beginning of the first quarter under review. In
addition, by applying the methods stipulated in additional item (1) under Paragraph 86 of the Revenue Recognition
Accounting Standard, accounting treatment has been applied to contract changes made prior to the beginning of
the first quarter under review in accordance with the contractual conditions after all the contract changes have beenreflected, and the cumulative effects of this has been added to, or subtracted from, the retained earnings at the
beginning of the first quarter under review.
The impact to profit and loss for this first quarter under review and retained earnings at the beginning of thefirst quarter from applying the Revenue Recognition Accounting Standard, etc. is minor.
Due to the application of the Revenue Recognition Accounting Standard, etc., “Notes and accounts receivable –trade” as presented under “Current assets” on the “Consolidated Balance Sheets” for the previous fiscal year has
been included in “Notes and accounts receivable - trade, and contract assets” from this quarter under review. In
accordance with the transitional treatment as stipulated in Paragraph 89-2 of the Revenue Recognition AccountingStandard, reclassification of accounts under the new display method has not been made for the previous fiscal year.
8

(Application of accounting standards for calculating fair market values)
From the beginning of this first quarter under review, the Accounting Standard for Fair Value Measurement(ASBJ Statement No. 30, July 4, 2019; hereinafter referred to as the “Fair Value Measurement AccountingStandard”) has been applied, and in accordance with the transitional treatments stipulated in Paragraph 19 of the
Fair Value Measurement Accounting Standard and Paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019), a new accounting policy as stipulated by the Fair Value
Measurement Accounting Standard shall be applied going forward. This shall have no impact on the quarterly
consolidated financial statements.

(Segment information, etc.)
1. Information on net sales and profit (loss) by reportable segment
For the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)
Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Adjustment(Notes) *2

Total(Million yen)Amountrecorded in
Quarterly
Consolidated
Statements ofIncome(Notes)*3

Net sales
Net sales to outside
customers

11,585444

12,030659

12,689-12,689Inter-segment net
sales or transfers

-

-

-

-

-

-

-

Total

11,585444

12,030659

12,689-12,689Segment income (loss)

764

(339)

425

31

457

(568)

(111)

(Notes)*1 The “Other” category is a business segment that is not included in reportable segments, and includes the industrial
machinery-related business, the real estate leasing-related business, the electricity sales-related business and theprecision parts-related business.
*2 The adjustment for segment income (loss) represents corporate expenses, largely consisting of selling, general andadministrative expenses not attributable to the reportable segments.
*3 Segment income (loss) is adjusted with operating loss on the Quarterly Consolidated Statements of Income.

9For the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)
Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Adjustment(Notes) *2

Total(Million yen)Amountrecorded in
Quarterly
Consolidated
Statements ofIncome(Notes)*3

Net sales
Net sales to outside
customers

9,772

991

10,764892

11,656-

11,656

Inter-segment net
sales or transfers

-

-

-

-

-

-

-

Total

9,772

991

10,764892

11,656-

11,656

Segment income (loss)

837

(285)

551

98

650

(553)

96

(Notes)*1 The “Other” category is a business segment that is not included in reportable segments, and includes the industrial
machinery-related business, the real estate leasing-related business, the electricity sales-related business and theprecision parts-related business.
*2 The adjustment for segment income (loss) represents corporate expenses, largely consisting of selling, general andadministrative expenses not attributable to the reportable segments.
*3 Segment income (loss) is adjusted with operating profit on the Quarterly Consolidated Statements of Income.

10

3. Supplementary Information(1) Status of Production, Orders Received, and Sales
For the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)
1) Production
Production by segment for the three months ended June 30, 2021 is as follows:(Million yen)Segment

VolumeAmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines

201,250

9,772(15.7)

Land-use engines

1,306

991

123.0

-

733

46.9

11,497

(8.2)

Other
Total
(Notes)*1 Amounts are based on sales prices.
*2 The figures above do not include consumption taxes.

2) Orders received
Orders by segment for the three months ended June 30, 2021 are as follows:(Million yen)Orders received
Segment

VolumeAmountHorsepower

Order backlogs
Year-on-yearchange%Horsepower

63.8

1,576,148

103.8

99,855

8.1-

VolumeAmountYear-on-yearchange%Internal combustion engine
Marine-use engines

544,260

Land-use engines

21,012

Other

Total

(Notes)

17,767[9,327]
2,715
[84]
685
[-]
21,168[9,411]

65.2

32,762[15,333]
6,460
[313]
646
[-]
39,868[15,646]

23.8
6.8(21.6)
19.6*1 Amounts are based on sales prices.
*2 Figures in brackets [ ] indicate export orders received and the balance of export orders outstanding, and are included
in totals.
*3 The figures above do not include consumption taxes.

113) Sales results
Sales by segment for the three months ended June 30, 2021 are as follows:
Segment

VolumeHorsepower

AmountExport ratio%(Million yen)
Year-on-year change%Internal combustion engine
Marine-use engines

201,250

9,772
59.0(15.7)[5,769]Land-use engines
1,306
991
8.5
123.0
[84]
Other
892
35.4
[-]
11,656
Total
50.2
(8.1)
[5,853](Notes) *1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (63.2%), Europe (24.5%), Latin America (6.2%), North America (2.9%), Others (3.2%)*3 The “Other” segment includes precision parts-related (295 million yen), industrial machinery-related (438 million
yen) and real estate leasing-related (159 million yen).
*4 The figures above do not include consumption taxes.

12