Consolidated Financial Results
for the Fiscal Year Ended March 31, 2018
[Japanese GAAP]
April 26, 2018
Company name: Daihatsu Diesel Mfg. Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 6023
URL: http://www.dhtd.co.jp
Representative: Shigeki Kinoshita, President
Contact: Osamu Goda, Senior Managing Director
Phone: +81-6-6454-2331
Scheduled date of Annual General Meeting of Shareholders: June 28, 2018
Scheduled date of commencing dividend payments: June 29, 2018
Scheduled date of filing annual securities report: June 28, 2018
Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2018
60,1662.1
3,044 (13.0)
3,104
(9.8)
2,095
(9.6)
March 31, 201758,9343.4
3,498 (36.3)
3,441 (36.7)
2,319 (35.5)(Note) Comprehensive income: Fiscal year ended March 31, 2018: 2,110 million yen [(21.5)%]
Fiscal year ended March 31, 2017: 2,687 million yen [(7.9)%]
Basic earnings
per share

Diluted earnings
per share

Rate of return on
equityOrdinary profit
to total assets

Operating profit
to net sales

Fiscal year ended
Yen
Yen
%
%
%
March 31, 2018
65.83
5.6
3.9
5.1
March 31, 2017
72.87
6.6
4.5
5.9
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2018: - million yen
Fiscal year ended March 31, 2017: - million yen(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

38,092As of March 31, 2018
80,969As of March 31, 2017
78,981
36,460(Reference) Equity: As of March 31, 2018: 38,049 million yen
As of March 31, 2017: 36,414 million yen

47.0
46.1

1,195.24
1,143.90(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2018
March 31, 2017

Net cash provided by(used in) operating
activities

Net cash provided by(used in) investing
activities

Net cash provided by(used in) financing
activities

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

4,480
4,974

(6,110)(3,725)(1,377)
1,661

20,42023,442

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2017
March 31, 2018
Fiscal year ending
March 31, 2019
(Forecast)Total
dividends

Total

Yen

Yen

Yen

Yen

-

0.00
0.00

-

15.00
15.00

15.00
15.00

-

0.00

-

15.00

15.00

Payoutratio(consolidated)

Yen Million yen

477
477

Dividends
to netassets(consolidated)

%

%

20.6
22.8

1.4
1.3

31.9

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2019 (April 1, 2018 toMarch 31, 2019)(% indicates changes from the previous corresponding period.)
Net sales
Million yen

First half
Full year

Operating profit%

26,000 (13.0)
57,000 (5.3)

Million yen

Ordinary profit% Million yen

200 (86.2)
2,500 (17.9)

Profit attributable toowners of parent

Basic earnings
per share%

Million yen%

Yen

200 (87.0)
2,400 (22.7)

0
1,500

(100.0)(28.4)

0.00
47.09* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in changes in scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2018: 31,850,000 shares
March 31, 2017: 31,850,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2018: 16,235 shares
March 31, 2017: 16,170 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2018: 31,833,769 sharesFiscal Year ended March 31, 2017: 31,833,830 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2018 (April 1, 2017 toMarch 31, 2018)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating profit
Ordinary profit
ProfitFiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
52,862
1,356
March 31, 2018
2.4
(6.1)
2,379
(5.0)
1,949
(4.3)
March 31, 2017
51,6121.8
1,445 (57.2)
2,504 (41.4)
2,037 (34.9)
Basic earnings per share
Fiscal year ended
March 31, 2018
March 31, 2017

Diluted earnings per share
Yen

Yen

61.23
63.99

-

(2) Non-consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

As of March 31, 2018
73,542
31,66370,43130,180
As of March 31, 2017
(Reference) Equity: As of March 31, 2018: 31,663 million yen
As of March 31, 2017: 30,180 million yen

43.1
42.9

994.66
948.05

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2019 (April 1, 2018 toMarch 31, 2019)(% indicates changes from the previous corresponding period.)
Net salesFirst half
Full year

Basic earnings
per share

ProfitOrdinary profit

Million yen%

Million yen%

Million yen%

Yen

22,00049,000(16.2)
(7.3)

800
2,000

(54.7)(15.9)

700
1,700(54.6)(12.8)

21.97
53.37

* These consolidated financial results are outside the scope of audit conducted by a certified public accountant oraudit corporation.
* Explanation of the proper use of financial results forecast and other notes(Note on forward-looking statements)
The financial results forecasts and other forward-looking statements herein are based on information andcertain 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 “Analysis of Operating Results”
on page 2 of the attached material for the assumptions the financial results forecasts are based on, and notes on
their use.
(How to obtain supplementary briefing material on annual financial results and information on the briefing
session)Briefing session for institutional investors and analysts are scheduled to be held on Wednesday, May 23, 2018.
The briefing materials will be posted on the Company’s website after the session.

Table of Contents
1. Operating Results and Financial Position ............................................................................................................... 2(1) Analysis of Operating Results ........................................................................................................................... 2(2) Analysis of Financial Position........................................................................................................................... 3(3) Dividend Policy ................................................................................................................................................ 4(4) Business and Other Risks.................................................................................................................................. 4
2. Overview of the Corporate Group .......................................................................................................................... 6
3. Basic Stance Concerning Choice of Accounting Standards.................................................................................... 8
4. Consolidated Financial Statements and Primary Notes .......................................................................................... 9(1) Consolidated Balance Sheets ............................................................................................................................ 9(2) Consolidated Statements of Income and Comprehensive Income .................................................................. 11(3) Consolidated Statements of Changes in Equity .............................................................................................. 13(4) Consolidated Statements of Cash Flows ......................................................................................................... 15(5) Notes to the Consolidated Financial Statements ............................................................................................. 17(Notes on going concern assumption) .............................................................................................................. 17(Important matters that form the basis for preparing Consolidated Financial Statements) .............................. 17(Segment information, etc.) .............................................................................................................................. 20(Per share information) ..................................................................................................................................... 23(Significant subsequent events) ........................................................................................................................ 23
5. Non-consolidated Financial Statements................................................................................................................ 24(1) Non-consolidated Balance Sheets ................................................................................................................... 24(2) Non-consolidated Statements of Income ........................................................................................................ 26(3) Non-consolidated Statements of Changes in Equity ....................................................................................... 27
6．Other ................................................................................................................................................................... 29(1) Status of production, orders received, and sales (April 1, 2017 to March 31, 2018) ...................................... 29(2) Changes in Directors and Corporate Auditors................................................................................................. 30

11. Operating Results and Financial Position(1) Analysis of Operating Results1) Summary of operating results for the fiscal year under review
During the consolidated fiscal year under review, the Japanese economy, due to economic policies brought
in by the government, saw improvements in the employment environment and corporate earnings and thecontinuation of a moderate recovery trend, but the future economic outlook remained uncertain, with the effectsof East Asian geopolitical risk and overseas political instability causing concern.
In the shipbuilding and maritime industry, the primary industry in which the Company makes its sales,
global completed construction volume for newly-built vessels during the previous year was 65,370 thousand
gross tons, or limited to a 1.6% decrease year-on-year. Order volumes for new vessels reached 42,660 thousand
gross tons or a significant increase of 126.9%, but considering the preceding fiscal year’s violent slump, it is44.7% lower than the level from the year before last. Although signs of a recovery can be seen in maritime
indices, an oversupply of shipping tonnage and shipbuilding capacity remain unresolved. It is believed that it
will take some time for demand for new shipbuilding to achieve a full-fledged recovery.
Under such a corporate environment, the Company advanced active business expansion in line with thethree key objectives of “Solidification and expansion of existing businesses,” “Growth through expansion of
peripheral business domains,” and “Initiatives for future business development in preparation for 100th
anniversary” within its Mid-term Management Plan (April 1, 2015 to March 31, 2020).
Concerning “Solidification and expansion of existing businesses,” the first dual-fuel engine, which canswitch between two types of fuel, liquid and natural gas in response to requirements, was introduced to themarket in February 2018. In order to respond to the needs of society in the future, the development of low
environmental impact, environmentally-conscious engines is actively being promoted. In addition, preparations
towards the full operation of the new factory in Himeji in October 2018 are steadily advancing to support theincrease in size and diversity of engines and as a model next generation factory to lead the way to a rich future,
while at the same time taking the global environment into consideration.
Concerning “Growth through expansion of peripheral business domains,” the first order for maintenancesupport service using “CMAXS LC-A”, a next generation cloud-based engine condition monitoring system,
was received in July 2017. Also, orders have been strong for a selective catalytic reduction (SCR) device that
conforms to NOx regulations effective from January 2016, with the first unit introduced to the market in
October 2017. The Company will provide its customers with the best solutions which are environmentallyfriendly and realize the improvement of customer’s convenience and safety as well as the reduction of total
lifecycle cost, continuously increasing its presence as an engine manufacturer with excellent environmentallyconscious technologies.
Concerning “Initiatives for future business development in preparation for 100th anniversary,” the Company
is advancing initiatives to (1) establish a growth foundation by improving shareholder value, and (2) restructure
the business portfolio. As a part of these measures, the Company is working to strengthen corporate governanceand enrich dialogue with stakeholders. In the future, the Company will conduct management with the goal ofcontinuous growth, while aiming for still more improvement in corporate value.
As a result, consolidated net sales increased by 2.1% year-on-year to 60,166 million yen, operating profit
decreased by 13.0% year-on-year to 3,044 million yen, ordinary profit decreased by 9.8% year-on-year to 3,104
million yen, and profit attributable to owners of parent decreased by 9.6% year-on-year to 2,095 million yen.
Performance by business segment of the Company and the consolidated Group are as follows.
<Internal combustion engines>
1. Marine-use
Although there was a decrease in engine sales volume and maintenance-related sales, the influence of
foreign exchange rates resulted in a decrease in net sales by 1.2% year-on-year to 45,828 million yen, and anincrease in segment income by 3.0% year-on-year to 5,080 million yen.

2

2. Land-use
Although items sold grew in size, due to the deterioration of engine profitability, net sales increased by
18.3% year-on-year to 10,666 million yen and segment income decreased by 70.0% to 214 million yen.
Consequently, including parts sales and maintenance construction, net sales for the segment increased by
2.0% year-on-year to 56,495 million yen, and segment income decreased by 6.3% year-on-year to 5,295 million
yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, an increase in sales volume of applicable vehicles caused both net
sales and segment income to increase.
2. Real estate leasing-related
In real estate leasing-related, net sales decreased slightly and segment income decreased.
3. Electricity sales-related
In electricity sales-related, net sales increased slightly and segment income increased.
4. Precision parts-related
In precision parts-related, net sales decreased slightly and there was a segment loss.
Consequently, net sales for the segment increased by 4.1% year-on-year to 3,671 million yen, and segment
income decreased by 20.0% year-on-year to 370 million yen.
2) Outlook for the next fiscal year
Concerning the outlook of the Group for the next fiscal year, in the Company’s mainstay marine-use market,
in place of favorable sales of the last fiscal year’s large engines for mega container vessels, sales of small
engines aimed at bulk carriers increased significantly, reflecting the recovery in marine cargo market resulting
in lower unit sale prices. In addition, since it is expected that the yen will be strong throughout the year
compared to the previous fiscal year, net sales are projected to decline year-on-year, despite an increase inengine sales. As the widening gap in demand for shipping tonnage is progressively leading to resolution, signsof a recovery are starting to be seen in marine indices, but it is still not a fully-fledged recovery and a harshbusiness environment is forecast to continue for the foreseeable future.
Meanwhile, in the land-use market, net sales are forecast to increase year-on-year with the expectation ofsales of overseas properties due to factors such as favorable performance in emergency power generation
facilities as a facet of business continuity planning (BCP).
Under such circumstances, the Group will work to provide products that fit customer needs, strengthen pricecompetitiveness via thorough raw material cost reductions and expense cuts, and while responding swiftly andappropriately to changes in the market, work to expand the scale of sales and secure profits.
From the factors outlined above, the financial results forecast of the Group for the next fiscal year is 26,000
million yen in net sales, 200 million yen in operating profit, 200 million yen in ordinary profit, and 0 million
yen in profit attributable to owners of parent for the first half period and 57,000 million yen in net sales, 2,500
million yen in operating profit, 2,400 million yen in ordinary profit, and 1,500 million yen in profit attributableto owners of parent for the full year.

(2) Analysis of Financial Position
In assets as of the end of the fiscal year under review, notes and accounts receivable - trade increased by 784
million yen from the end of the previous fiscal year while the turnover period of accounts receivable was 101.4
days (compared with 98.2 days at the end of the previous fiscal year). Property, plant and equipment increased
by 5,383 million yen from the end of the previous fiscal year to 23,946 million yen due to the building of the
new Himeji factory and other factors. Meanwhile cash and deposits decreased by 2,626 million yen. Inventories
decreased by 1,868 million yen while the turnover period was 69.7 days (compared with 76.1 days at the end of
the previous fiscal year). Total assets as of March 31, 2018 amounted to 80,969 million yen, an increase of
1,987 million yen compared with the end of the previous fiscal year.
In liabilities, notes and accounts payable - trade and electronically recorded obligations in total decreased by3

651 million yen from the end of the previous fiscal year while their turnover period was 73.6 days (comparedwith 76.5 days at the end of the previous fiscal year). On the other hand, other current liabilities increased by
830 million yen, mainly due to increases affected by capital expenditure. The ratio of interest-bearing liabilities(excluding lease obligations) to net sales at the end of the current fiscal year was 20.3%, down 1.2 points fromthe end of the previous fiscal year. As a result, total liabilities increased by 355 million yen from the previous
fiscal year to 42,877 million yen.

(3) Dividend Policy
The Company views the return of profits to shareholders as an important management objective, and while
maintaining internal reserves to improve profitability and strengthen its financial standing, the Company has abasic policy of implementing distribution of profits in accordance with business results, and has placed“enhancing dividend payout ratio” as a target under the Mid-term Management Plan period (April 1, 2015 toMarch 31, 2020).
(4) Business and Other Risks
Forward-looking statements, such as forecasts, anticipation, expectations, and prospects, indicated in thissection reflect the judgment of the Group as of March 31, 2018 and actual results in the future may differ
significantly from them.
1) Foreign exchange risk
For certain products and related parts and services, the Group conducts sales and procurement in regions
other than Japan, and may conduct these transactions in the US dollar, euro, or other local currency, aside fromthe yen. Some overseas consolidated subsidiaries also conduct sales in yen, and concerning these accounts
receivable at the fiscal year-end, foreign exchange losses or gains may occur due to foreign exchange
fluctuation of the standard accounting currency, and it is possible that there may be an effect on business results
or financial conditions.
2) Cash flows
Consolidated net sales of the Group amounted to 60,166 million yen while interest-bearing debt (excluding
lease obligations) was 12,241 million yen. In addition, cash and cash equivalents at the end of the fiscal year
under review decreased by 3,022 million yen. Moving forward, the Group will strengthen cash flow
improvement activities, and work toward measures to strengthen the financial standing through inventory
reduction and improvement in transaction conditions, etc., but as fund procurement is dependent on indirect
financing, variations in financial trends may influence cash flows.
3) Dependence on technologies of certain suppliers
The Group sources many of the parts that comprise an engine from outside sourcing, and certain key parts
are dependent upon suppliers that possess specific advanced technologies. Concerning these, it is possible thatprocurement may become unstable due to conditions at the suppliers. Additionally, the Group is working
toward continued reduction of procurement costs via measures such as domestic procurement at lower costs
and seeking new suppliers in countries such as China, but if factors such as a rise in prices for specificmaterials arise, it is possible that cost reductions will not proceed steadily.
4) Legal restraints
Regulations regarding environmental burden reduction are becoming increasingly strict toward diesel
engines, a mainstay product of the Company. In addition to the Air Pollution Control Act for land-use,
restrictions for exhaust gases based on the International Convention for the Prevention of Pollution from Ships
are forecast to add another level of strictness for marine-use. While the Group is working toward productdevelopment to satisfy these restrictions, if delays arise during development, there may be an effect on policies
to secure and expand market share for the Company’s products.
5) Credit risk associated with accounts receivable
The Group possesses accounts receivable toward transaction partners. As a result, amid changes in financial
trends and uncertainty in the economy, the Sales and Transaction Partner Management Committee wasestablished, and countermeasures are in place to prevent occurrence of bad debts and doubtful account losses4

by continuously paying close attention to business conditions of credit counterparties. However, there may be
manifestations of collection risk if unforeseen or unavoidable conditions arise due to sudden changes in themarket environment, etc.
6) Risk of natural disasters
The production of the Group’s mainstay diesel engines is concentrated in two locations, at the Moriyama
Factory in Moriyama City, Shiga Prefecture, and the Himeji Factory in Himeji City, Hyogo Prefecture.
However, there is the possibility that production activities may be obstructed in the event a natural disaster suchas a large-scale earthquake, storm, flood, etc. as well as other disaster such as fire, etc.
7) Risk of oversea expansion
The economic environment surrounding the marine cargo and vessel markets, which most greatly affect theGroup, is heavily impacted by expansion of emerging markets, particularly the Chinese economy, and if
unforeseen circumstances cause the vessel market in China to shrink and engine production volume at licensees
in China to sharply decrease, there may be discord in the medium-term plan to aim for share expansion for
Daihatsu-branded engines in tandem with Chinese licensee engines.

52. Overview of the Corporate GroupThe Group is comprised of the Company and its 22 subsidiaries and other companies, and engages in thebusinesses such as production and distribution of internal combustion engines and industrial equipment as well as
real estate leasing.
Concerning the industrial equipment business, all deliveries are made to one other associated company.
Businesses and the position of the Company and each subsidiary and associated companies within the relevantbusiness are as follows.

Category

Main Products (Business)

Major Companies
Daihatsu Diesel Mfg. Co., Ltd., DAIHATSU DIESEL EAST JAPANCO., LTD., DAIHATSU DIESEL NAKANIHON CO., LTD.,

Diesel engines for marine-use

DAIHATSU DIESEL SHIKOKU CO., LTD., DAIHATSU DIESEL

Diesel engines for land-use

NISHINIHON CO., LTD.

Gas turbine

DAIHATSU DIESEL (ASIA PACIFIC) PTE. LTD.

Sales of parts for the above

DAIHATSU DIESEL (EUROPE) LTD.
DAIHATSU DIESEL (AMERICA), INC.

Internal Marine-use/
combustion land-use
engines
engines

DAIHATSU DIESEL (SHANGHAI) CO., LTD.
Information handling service

Other

Industrial
equipment
Real estateleasing
Electricity
sales
Precision
parts

DAITEK COMPANY INCORPORATEDTransportation

DS CORPORATIONInternal warehouse management

DAIHATSU DIESEL PARTS SERVICE CO., LTD.,

DesignDD TECHNICAL CO., LTD.*1

Production and distribution

DAIHATSU DIESEL ANQING IRONWORKS.CO., LTD.*2

After-sales service

MD ENGINEERING CO., LTD.*1

Sale of aluminum wheels

Daihatsu Diesel Mfg. Co., Ltd.

Rental office

Daihatsu Diesel Mfg. Co., Ltd., DAIHATSU DIESEL UMEDA
CITY CO., LTD.

Solar power generation businessDaihatsu Diesel Mfg. Co., Ltd.

Precision parts

Nippon Nozzle Seiki Co., Ltd.

(Notes)1. Marked with *1: Non-consolidated subsidiaries
2. Marked with *2: Associated companies
3. Aside from the above, there is a consolidated subsidiary “DAIHATSU DIESEL HIMEJI CO., LTD.” It is not included as thecompany is in business preparation phase.

6

The chart shows the relationship stated above.
Information handlingservice
DAITEK COMPANY
INCORPORATEDSale of internal combustion
engines and parts
9 companies

Transportation
DS CORPORATIONInternal warehousemanagement
DAIHATSU DIESELPARTS SERVICE CO., LTD.
Internal combustion
engines(Marine-use/land-use engines)

After-sales service(Non-consolidated
subsidiary)
MD ENGINEERING CO.,LTD.

Daihatsu Diesel
Mfg. Co., Ltd.

Design(Non-consolidated
subsidiary)
DD TECHNICAL CO., LTD.

Production and distribution(Affiliate)
DAIHATSU DIESELANQINGIRONWORKS.CO., LTD.

Generalcustomers
Rental office
DAIHATSU DIESELUMEDA CITY CO., LTD.
Other
(Real estateleasing-related)
Delivery of aluminum
wheels(Other associatedcompany)
Daihatsu Motor Co., Ltd.

Other
(Industrial
machinery-related)

Other(Power sellingrelated)

DAIHATSUDIESEL UMEDA
CITY CO., LTD.

Other
(Real estateleasing-related)

Nippon Nozzle

Other(Precision partsrelated)

Seiki Co., Ltd.

(Notes)1. DAIHATSU DIESEL UMEDA CITY CO., LTD. partially owns the “Umeda Sky Building,” and is in the rental office business.
2. Aside from the above, there is a consolidated subsidiary “DAIHATSU DIESEL HIMEJI CO., LTD.” It is not included as the company is inbusiness preparation phase.

73. Basic Stance Concerning Choice of Accounting Standards
Taking into consideration the comparability of consolidated financial statements among companies, theGroup prepares its consolidated financial statements using Japanese GAAP.
With regard to International Financial Reporting Standards, the Group’s policy is to respond appropriately
based on consideration of the situation in Japan and overseas.

8

4. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Deferred tax assets
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

9

As of March 31, 201824,302
15,791
12,426
1,852
1,645
(75)
55,942

21,676
16,575
10,557
1,853
1,572
(13)
52,221

6,818
4,045
5,054
1,643
1,001
18,563
1,026

7,682
3,715
5,088
6,551
908
23,946
1,390

1,094
2
1,846
520
(13)
3,449
23,03978,981

1,058
1
1,899
513
(63)
3,410
28,74780,969(Million yen)
As of March 31, 2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Accrued expenses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Provision for directors’ retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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

10

As of March 31, 2018

7,398
5,063
3,991
381
773
684
66
2,378
2,745
23,483

6,965
4,845
4,642
497
710
698
51
2,671
3,575
24,657

8,686
824
473
6,379
165
2,509
19,03742,521

7,598
1,134
460
6,456
167
2,400
18,21942,8772,434
2,190
32,101(10)
36,7162,434
2,191
33,719(10)
38,334

248
(5)
6
(550)
(301)
45
36,46078,981

255
–
5
(545)
(285)
42
38,09280,969(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2017
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
Non-operating income
Interest income
Dividend income
Fiduciary obligation fee
Reversal of allowance for doubtful accounts
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
State subsidy
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on sales of non-current assets
Loss on valuation of golf club membership
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

11

For the fiscal year
ended March 31, 2018

58,93444,616
14,31760,16646,43913,726

8,205
2,613
10,819
3,498

8,060
2,621
10,682
3,044

16
16
103
0
53
190

12
39
114
16
129
312

110
117
19
247
3,441

100
91
61
253
3,104

0
69
69

0
–
0

66
0
–
3
69
3,440
1,079
38
1,118
2,322
2
2,319

53
0
0
–
54
3,050
1,018
(62)
956
2,094
(1)
2,095

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2017
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

12

For the fiscal year
ended March 31, 2018

2,322

2,094

42
(5)
(32)
359

6
5
(1)
5

364

15

2,687

2,110

2,684

2,111

2

(1)

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2017
(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

Treasury shares

Total shareholders’equity2,170

30,275(10)

34,8702,434Changes of items during period
Dividends of surplus
Profit attributable to ownersof parent
Change of scope of
consolidation

(477)

(477)

2,319

2,319

(16)

(16)

Purchase of treasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

20

20

-

20

1,825

-

1,845

2,434

2,190

32,101(10)

36,716

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets

205

-

39

(910)

(665)

19

34,224

Dividends of surplus(477)

Profit attributable toowners of parent
Change of scope of
consolidation

2,319
(16)

Purchase of treasury shares
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items otherthan shareholders’ equity

-

20

42

(5)

(32)

359

364

25

390

Total changes of items during
period

42

(5)

(32)

359

364

25

2,236

Balance at end of current
period

248

(5)

6

(550)

(301)

45

36,46013

For the fiscal year ended March 31, 2018
(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

Treasury shares

Total shareholders’equity2,190

32,101(10)

36,7162,434

Changes of items during period
Dividends of surplus
Profit attributable to ownersof parent
Change of scope of
consolidation

(477)

(477)

2,095

2,095

Purchase of treasury shares(0)Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

(0)

0

0

-

0

1,618

(0)

1,618

2,434

2,191

33,719(10)

38,334

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets

248

(5)

6

(550)

(301)

45

36,460

Dividends of surplus(477)

Profit attributable toowners of parent
Change of scope of
consolidation

2,095
-

Purchase of treasury shares
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

(0)

0

6

5

(1)

5

15

(2)

13

6

5

(1)

5

15

(2)

1,631

255

-

5

(545)

(285)

42

38,09214

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2017
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’ retirement
benefits
Interest and dividend income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on abandonment of non-current assets
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Decrease/increase in consumption taxes
receivable/payable
Increase (decrease) in guarantee deposits received
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries
Collection of loans receivable
Proceeds from withdrawal of time deposits
Payments into time deposits
Other, net
Net cash provided by (used in) investing activities

15

For the fiscal year
ended March 31, 2018

3,440
2,489
43
(58)
(25)
(123)

3,050
2,440
(13)
13
(14)
(47)

(21)

(12)

(32)
110
(0)
66

(51)
100
(0)
54

1,504

(746)

(78)
191

1,869
(698)

(266)

71

28
(615)
6,651
41
(111)
(1,607)
4,974

(111)
(351)
5,552
51
(100)
(1,023)
4,480(3,575)
0
(31)
(20)
–
–
1
(5)
0
5,157
(5,254)–(3,725)(5,781)
8
(20)
(0)
0
30
0
–
0
1,091
(1,455)15(6,110)(Million yen)
For the fiscal year
ended March 31, 2017
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Proceeds from long-term loans payable
Repayments of long-term loans payable
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Purchase of treasury shares of subsidiaries
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

16

For the fiscal year
ended March 31, 2018

(460)
(357)
6,250
(3,291)

460
(473)
200
(1,086)

(0)

–

–
(477)
(0)
–
1,661

(0)
(477)
(0)
(0)
(1,377)

(78)

(14)

2,832
20,606(3,022)
23,442

4–

23,442

20,420(5) Notes to the Consolidated Financial Statements(Notes on going concern assumption)

There is no relevant information.

(Important matters that form the basis for preparing Consolidated Financial Statements)

1. Scope of consolidation(1) Numbers of consolidated subsidiaries: 14
Principal companies:
DAIHATSU DIESEL EAST JAPAN CO., LTD., DAIHATSU DIESEL NISHINIHON CO., LTD.
DAIHATSU DIESEL SHIKOKU CO., LTD., DAIHATSU DIESEL NAKANIHON CO., LTD.,DAIHATSU DIESEL (ASIA PACIFIC) PTE. LTD., DAIHATSU DIESEL (EUROPE) LTD.,DAIHATSU DIESEL (AMERICA), INC., DAIHATSU DIESEL (SHANGHAI) CO., LTD.
(2) Major non-consolidated subsidiaries:
DD TECHNICAL CO., LTD.
MD ENGINEERING CO., LTD.
Reasons for exclusion from scope of consolidation
These companies are excluded from the scope of consolidation as they are small in size and do not havematerial impact on the Consolidated Financial Statements with respect to total assets, net sales, profit or loss
and retained earnings (corresponding to the percentage of shares).
2. Application of the equity method
Major non-consolidated subsidiaries and affiliates not accounted for by the equity method:
DD TECHNICAL CO., LTD.
MD ENGINEERING CO., LTD.
DAIHATSU DIESEL ANQING IRONWORKS.CO., LTD.
Reason for not applying equity method:
As those companies have only minor impact on the consolidated profit (loss) and retained earnings, andtheir overall impact is not material, the investments in these companies are accounted for at cost rather than by
the equity method.
3. Accounting Standards(1) Valuation standards and methods for important assets
A. Securities(a)Held-to-maturity securities
Stated at amortized cost(b)Available-for-sale securities
Fair market values available ………… Stated at fair market value based on the market value,etc. of the closing date
(All valuation gains or losses are treated as acomponent of net assets, and cost of sales is computedby the moving-average method.)
Fair market values not available …… Stated at cost using the moving-average method

17

B. Inventories
Finished goods/work in process/raw materials
Stated at cost using the periodic average method (The book value will be written down for decreased
profitability)(2) Depreciation methods for significant depreciable assets
A. Property, plant and equipment (excluding lease assets)
They are depreciated using the straight-line method.
However, certain consolidated subsidiaries use the declining-balance method.
Those acquired on or before March 31, 2007 will be depreciated in equal amounts over the five-year
period beginning with the year following the completion of depreciation to the permissible limit.
B. Intangible assets (excluding lease assets)
They are depreciated using the straight-line method.
Software for internal use is depreciated using the straight-line method based on their estimated useful
lives (5 years).
C. Lease assets
Lease assets under finance leases wherein ownership of the leased asset does not transfer to thelesseeThese assets are depreciated using the straight-line method over respective lease periods without
residual value.
(3) Accounting standards for significant reserves
A. Allowance for doubtful accounts
In order to prepare for probable losses on collection, estimated amount uncollectible is provided for inaccordance with the historical write-off ratio in the case of ordinary receivables and provided against
estimated future losses on collection based on the detailed credit analysis in the case of doubtful accounts
and other specific receivables.
B. Provision for bonuses
To provide for payment of bonuses to employees, provision for bonuses is provided for based on theestimated amount of payments attributable to the current fiscal year.
C. Provision for directors’ bonuses
To provide for payment of bonuses to directors, provision for directors’ bonuses is provided for basedon the estimated amount of payments attributable to the current fiscal year.
D. Provision for directors’ retirement benefits
To prepare for the payment of retirement benefits to directors, the Company and certain consolidated
subsidiaries provide for the amount of year-end payments pursuant to internal rules of retirement benefits
for directors.
(4) Accounting method for retirement benefits
A. Periodic allocation of projected retirement benefits
In calculating projected benefits obligations, periodic allocation of projected retirement benefits up to
the end of current period is based on the benefit formula basis.
B. Method of amortizing actuarial differences and prior service costs
Prior service costs are recorded as expense over a certain number of years within the averageremaining years of service of the corresponding employees at the time of occurrence (10 years) using thestraight-line method.
Actuarial differences are accounted for as expenses over a certain number of years within the average18

remaining years of service of the corresponding employees (10 years) using the straight-line method,commencing with the consolidated fiscal year following the one in which they were incurred.
(5) Significant hedge accounting
A. Hedge accounting
Deferred hedging is applied. The appropriation procedure is applied to foreign currency receivables andpayables for which forward exchange contracts have been entered.
The special accounting procedure is applied to interest rate swap contracts that qualify for hedge
accounting.
B. Hedging instruments and hedged items
Hedging instruments and hedged items for which hedge accounting was applied for the current fiscal
year are as follows:(a)
Hedging instruments: Forward foreign exchange contracts
Hedged items: Foreign currency trade receivables resulting from product export and future anticipatedtransactions denominated in foreign currency(b)
Hedging instruments: Interest rate swap contracts
Hedged items: Loans payable
C. Hedging policy
The Group conducts derivative transactions to hedge against foreign exchange and interest-rate risks inaccordance with the “Derivative Transaction Handling and Risk Management Regulations.”
D. Evaluation of hedge effectivenessFor forward exchange contract and interest rate swap, the evaluation of hedge effectiveness is omitted
because important conditions for hedge instruments and hedged items are identical, and it can be assumed
that market fluctuations will be completely eliminated at the time hedging begins and at any time
thereafter.
(6) Capital covered by Consolidated Statements of Cash Flows
Capital comprises cash on hand, deposits available for withdrawal as needed, and short-term
investments due for redemption within three months from the date of acquisition, which are easily
cashable and are subject to minimal risk of fluctuation in value.
(7) Other significant matters on presenting Consolidated Financial Statements
Accounting for consumption taxes
Consumption taxes are accounted for by the tax exclusion method.

19

(Segment information, etc.)(Segment information)
1. Description of reportable segments
The reportable segments of the Company categorize the business composition of the Company with respect
to financial information and are based on the financial reporting for performance evaluation with regard toannual business plan for each business at periodical meetings of the Board of Directors.
The Company’s main business is the manufacture and sale of internal combustion engines; it also provides
products that are not related to internal combustion engines to certain affiliates, and conducts business toutilize the real estate held by the Company.
The operative conditions of internal combustion engines, which comprise the majority of the Company’sbusiness, are significantly different between marine-use and land-use, and the Company conducts
management and evaluation by categorizing production, sales, and after-sales service business activities forengines into marine-use and land-use.
As a result, the Company’s reportable segments are Marine-use engines and Land-use engines.
2. Method for calculating net sales, profit (loss), assets, liabilities, and other by reportable segment

For the fiscal year ended March 31, 2017
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Total

Net sales(1) Net sales to outside
customers

46,3939,014

55,4083,525

58,934-58,934

-

-

-

-

-

-

-

46,3939,014

55,4083,525

58,934-58,934

Segment income

4,933

714

5,648

462

6,111

(2,613)

3,498

Other
Depreciation

1,710

329

2,039

312

2,352

136

2,489

(2) Inter-segment net
sales or transfers
Total(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 represents corporate expenses, largely consisting of selling, general andadministrative expenses not attributable to the reportable segments.
*3 Segment income is adjusted with operating profit on the Consolidated Statements of Income.
*4 Assets are not allocated to the business segments.

20

For the fiscal year ended March 31, 2018
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Total

Net sales(1) Net sales to outside
customers

45,828

10,66656,495

3,671

60,166-60,166

-

-

-

-

-

-

-

45,828

10,66656,495

3,671

60,166-60,166

Segment income

5,080

214

5,295

370

5,665

(2,621)

3,044

Other
Depreciation

1,615

367

1,983

303

2,287

153

2,440

(2) Inter-segment net
sales or transfers
Total(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 represents corporate expenses, largely consisting of selling, general andadministrative expenses not attributable to the reportable segments.
*3 Segment income is adjusted with operating profit on the Consolidated Statements of Income.
*4 Assets are not allocated to the business segments.

21

(Related information)
For the fiscal year ended March 31, 2017
1. Information by product and service
This is omitted as similar information is disclosed in Segment information.
2. Information by geographical area
1) Net sales(Million yen)

Japan

Asia
Latin America
29,59722,0582,182(Note) Country and region categories are based on geographic proximity.

Other

Total
5,095

58,9342) Property, plant and equipment

This is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of that stated in
the consolidated balance sheet.
3. Information by major customer
This is omitted as there were no external customers whose net sales account for more than 10% of net sales in
the consolidated statements of income.
For the fiscal year ended March 31, 2018
1. Information by product and service
This is omitted, as similar information is disclosed in Segment information.
2. Information by geographical area
1) Net sales(Million yen)

Japan

Asia
Latin America
34,397
18,643
1,937(Note) Country and region categories are based on geographic proximity.

Other

Total
5,188

60,1662) Property, plant and equipment

This is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of that stated in the
consolidated balance sheet.
3. Information by major customer
This is omitted because there were no external customers whose net sales account for more than 10% of net sales
in the consolidated statements of income.

22

(Per share information)

For the fiscal year
ended March 31, 2017

Category
Net assets per share
Basic earnings per share

For the fiscal year
ended March 31, 2018

1,143.90 yen

1,195.24 yen

72.87 yen

65.83 yen

(Note) The basis for the calculation of basic earnings per share is as follows.
For the fiscal year
ended March 31, 2017

Category

For the fiscal year
ended March 31, 2018

Basic earnings per share
Profit attributable to owners of parent (Million yen)

2,319

Amount not attributable to shareholders of common shares(Million yen)
Profit attributable to owners of parent relating to common
2,319
shares (Million yen)
Average number of shares of common shares outstanding
31,833,830 shares
during each fiscal year
(Note) Diluted earnings per share are not presented as there is no share outstanding with dilutive effect.

(Significant subsequent events)

Not applicable.

23

2,095
2,095
31,833,769 shares5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(Million yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Raw materials
Work in process
Prepaid expenses
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

24

As of March 31, 2018

20,734890
13,932
68
11,854
136
1,799
817
1,233
(4)
51,463

17,900
1,542
15,167
68
9,971
144
1,793
873
1,149
(4)
48,608

2,030
463
3,572
34
911
4,470
1,641
13,124

2,832
673
3,197
36
821
4,511
6,418
18,491

980
10
990

1,368
8
1,377

872
2,179
2
1,563
244
(8)
4,853
18,96870,431

852
2,371
1
1,616
232
(8)
5,064
24,93373,542

(Million yen)
As of March 31, 2017
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable
Accrued expenses
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Long-term guarantee deposited
Provision for retirement benefits
Provision for directors’ retirement benefits
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for advanced depreciation of non-current
assetsReserve for special depreciation
General reserve
Retained earnings brought forward
Total other retained earnings
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

25

As of March 31, 2018

984
5,944
5,067
2,915
1,022
373
207
2,274
427
419
4,496
533
60
458
25,184

849
5,889
4,859
3,375
1,213
489
1,182
2,450
347
150
5,001
536
50
1,063
27,459

8,481
807
10
5,280
376
110
15,06640,250

7,447
1,113
10
5,356
379
111
14,41941,878

2,434

2,434

2,150
2,150

2,150
2,150

221

221

102

91

33
22,7002,308
25,14325,365(10)
29,94017
24,2002,306
26,615
26,837(10)
31,412245(5)240
30,18070,431251–
251
31,66373,542

(2) Non-consolidated Statements of Income
Non-consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2017
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
State subsidy
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit26

For the fiscal year
ended March 31, 2018

51,612
42,412
9,200
7,754
1,445

52,862
43,966
8,895
7,539
1,356

1,136
154
1,290

1,030
187
1,217

107
123
231
2,504

97
96
194
2,379

0
69
69

0
–
0

55
3
58
2,514
478
(0)
477
2,037

51
0
51
2,328
431
(52)
379
1,949

(3) Non-consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2017
(Million yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning ofcurrent period
Changes of items during
periodReserve foradvanced
Reserve fordepreciation
specialof nondepreciation
current
assetsCapital
stock

Legal
capitalsurplus

Total capitalsurplusLegalretainedearnings

2,434

2,150

2,150

221

114

48

Generalreserve

Retainedearnings
brought
forwardTotal
retainedearnings

19,6003,820

23,805

(477)

(477)

(3,100)

-

15

-

12

-

2,037

2,037

Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Reversal of reserve foradvanced depreciationof non-current assets

3,100
(15)
(12)

ProfitPurchase of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period

-

-

-

-

(12)

(15)

3,100

(1,512)

1,559

2,434

2,150

2,150

221

102

33

22,7002,308

25,365

Shareholders’ equity

Valuation
Total
difference onshareholders’ available-forequity
sale
securities

TreasurysharesBalance at beginning ofcurrent period
Changes of items during
period(10)

Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Reversal of reserve foradvanced depreciationof non-current assets
ProfitPurchase of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
periodValuation and translation adjustments

28,380

Deferred
gains orlosses onhedges

202

-

Total
valuation andtranslation
adjustments

Total net
assets202

28,583

(477)

(477)

-

-

-

-

-

-

2,037

2,037
42

(5)

37

37

-

1,559

42

(5)

37

1,597

(10)

29,940

245

(5)

240

30,18027

For the fiscal year ended March 31, 2018
(Million yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning ofcurrent period
Changes of items during
periodReserve foradvanced
Reserve fordepreciation
specialof nondepreciation
current
assetsCapital
stock

Legal
capitalsurplus

Total capitalsurplusLegalretainedearnings

2,434

2,150

2,150

221

102

33

Generalreserve

Retainedearnings
brought
forwardTotal
retainedearnings

22,7002,308

25,365

(477)

(477)

(1,500)

-

15

-

10

-

1,949

1,949

Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Reversal of reserve foradvanced depreciationof non-current assets

1,500
(15)
(10)

ProfitPurchase of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period

-

-

-

-

(10)

(15)

1,500

(2)

1,471

2,434

2,150

2,150

221

91

17

24,2002,306

26,837

Shareholders’ equity

TreasurysharesBalance at beginning ofcurrent period
Changes of items during
period(10)

Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Reversal of reserve foradvanced depreciationof non-current assets
ProfitPurchase of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period(0)

Valuation and translation adjustments

Valuation
Total
difference onshareholders’ available-forequity
sale
securities
29,940245

Deferred
gains orlosses onhedgesTotalvaluation andtranslation
adjustments

Total net
assets(5)240

30,180

(477)

(477)

-

-

-

-

-

-

1,949

1,949

(0)

(0)
6

5

11

11

(0)

1,471

6

5

11

1,483

(10)

31,412

251

-

251

31,66328

6．Other(1) Status of production, orders received, and sales (April 1, 2017 to March 31, 2018)
1) Production
Production by segment for the current fiscal year is as follows:(Million yen)Segment

VolumeAmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines

1,323,216

45,828(1.2)

Land-use engines

124,818

10,666

18.3

-

3,031

5.3

59,526

2.1

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 current fiscal year are as follows:(Million yen)Order received
Segment

VolumeAmountHorsepower

Order backlogs
Year-on-yearchange%Horsepower

0.8

1,222,574

3.2

107,852(0.2)-

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

848,316

Land-use engines

139,612

Other

Total

40,508[18,036]
10,802
[944]
2,982
[-]
54,292[18,980]

1.2

26,176[9,459]
5,330
[469]
555
[-]
32,063[9,929](16.9)
2.6(8.0)(14.0)(Notes)*1 Amounts are based on sales prices.
*2 Figures in brackets [ ] indicate export orders received and the balance of export orders outstanding, and areincluded in totals.
*3 The figures above do not include consumption taxes.

293) Sales results
Sales by segment for the current fiscal year are as follows:
Segment

VolumeHorsepower

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

1,323,216

Land-use engines

124,818

Other

45,828[25,081]
10,666
[688]
3,671
[-]
60,166[25,769]

Total

54.7

(1.2)

6.5

18.3

-

4.1

42.8

2.1

(Notes)*1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (72.3%), Europe (16.9%), Latin America (7.5%), North America (2.7%), Others (0.6%)*3 The “Other” segment includes precision parts-related (1,550 million yen), industrial machinery-related (1,480
million yen) and real estate leasing-related (640 million yen).
*4 The figures above do not include consumption taxes.

(2) Changes in Directors and Corporate Auditors
Please refer to the “Notice regarding Changes in Directors and Corporate Auditors and Introduction of
Executive Officer System” announced on April 26, 2018.

30