Consolidated Financial Results
for the Six Months Ended September 30, 2018
[Japanese GAAP]
October 25, 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, Vice president
Phone: +81-6-6454-2331
Scheduled date of filing quarterly securities report: November 13, 2018
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled (for securities analysts and institutional investors)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2018 (April 1, 2018 to September
30, 2018)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Six months ended
Million yen%
Million yen%
Million yen%
Million yen%
September 30, 2018
26,729(9.6)
625 (57.0)
752 (51.2)
483 (54.8)
September 30, 201729,557
5.0
1,454
32.4
1,540
54.4
1,069
51.2
(Note) Comprehensive income: Six months ended September 30, 2018: 452 million yen [(60.6)%]
Six months ended September 30, 2017: 1,149 million yen [94.3%]
Basic earnings per share

Six months ended
September 30, 2018
September 30, 2017(2) Consolidated Financial Position
Total assets

Diluted earnings per share
Yen

Yen

15.18
33.58

-

Net assets

Million yen

Equity ratio

Million yen%

As of September 30, 2018
79,57838,067
As of March 31, 2018
80,96938,092(Reference) Equity: As of September 30, 2018: 38,026 million yen
As of March 31, 2018: 38,049 million yen

47.8
47.0

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen
Yen
Yen
Fiscal year ended
March 31, 2018
0.00
Fiscal year ending
0.00
March 31, 2019
Fiscal year ending
March 31, 2019
(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, 2019 (April 1, 2018 toMarch 31, 2019)(% indicates changes from the previous corresponding period.)
Net sales
Million yen

Operating profit%

Million yen

Ordinary profit% Million yen%

Full year
57,000 (5.3)
3,000
(1.5)
3,000
(3.4)
(Note) Revision to the financial results forecast announced most recently: None

Profit attributableto owners of parent
Million yen
2,000

Basic earnings
per share

%
(4.6)

Yen
62.79

* 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: No
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):
September 30, 2018: 31,850,000 shares
March 31, 2018: 31,850,000 shares2) Total number of treasury shares at the end of the period:
September 30, 2018: 16,235 shares
March 31, 2018: 16,235 shares
3) Average number of shares during the period:
Six months ended September 30, 2018: 31,833,765 shares
Six months ended September 30, 2017: 31,833,772 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.
(How to obtain supplementary briefing material on quarterly financial results and information on the briefing
session)Briefing session for institutional investors and analysts are scheduled to be held on Wednesday, November 7,
2018.
The briefing materials will be posted on the Company’s website after the session.

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 ............................................................................................................. 2(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) Quarterly Consolidated Statements of Cash Flows................................................................................... 8(4) Notes to the Quarterly Consolidated Financial Statements..................................................................... 10(Notes on going concern assumption)....................................................................................................... 10(Notes in the case of significant changes in shareholders’ equity) ........................................................... 10(Segment information, etc.) ...................................................................................................................... 10
3. Supplementary Information .......................................................................................................................... 12(1) Status of Production, Orders Received, and Sales .................................................................................. 121

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the six months under review (from April 1, 2018 to September 30, 2018), the Japanese economy saw
steady capital investment, improvement in the employment environment, and the continuation of a moderate
recovery trend, but the future outlook remained uncertain with natural disasters occurring across Japan and theeffects of the trade policy trends of the U.S. Government on the global economy causing concern.
Under such a corporate environment, the Company advanced active business expansion, but consolidated
net sales decreased by 9.6% year-on-year to 26,729 million yen. In terms of profit, operating profit decreased
by 57.0% year-on-year to 625 million yen, ordinary profit decreased by 51.2% year-on-year to 752 million yen,and profit attributable to owners of parent decreased by 54.8% year-on-year to 483 million yen.
Performance by business segment of the Company and the consolidated Group are as follows.
<Internal combustion engines>
1. Marine-use
Due mainly to the deterioration of engine profitability, in addition to decreased sales of engines mainly formainstay auxiliary power generators, net sales decreased by 6.3% year-on-year to 22,386 million yen, andsegment income decreased by 35.2% year-on-year to 1,825 million yen.
2. Land-use
Although unit sales decreased, net sales decreased by 28.7% year-on-year to 2,742 million yen and segment
loss amounted to 99 million yen (segment loss of 182 million yen in the previous corresponding period) due
mainly to an increase in maintenance-related sales.
Consequently, net sales for the segment decreased by 9.4% year-on-year to 25,129 million yen, and segment
income decreased by 34.5% year-on-year to 1,725 million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, due to a decrease in unit sales, both net sales and segment income
decreased.
2. Real estate leasing-related
In real estate leasing-related, both net sales and segment income increased slightly.
3. Electricity sales-related
In electricity sales-related, both net sales and segment income increased slightly.
4. Precision parts-related
In precision parts-related, although net sales increased slightly, segment loss was posted.
Consequently, net sales for the segment decreased by 11.7% year-on-year to 1,600 million yen, and segment
income decreased by 42.0% year-on-year to 117 million yen.

(2) Explanation of Financial Position
In assets as of the end of the second quarter under review, notes and accounts receivable - trade decreased
by 4,170 million yen from the end of the previous fiscal year due to a progress in collection of trade receivablesat the end of the previous fiscal year. In addition, inventories decreased by 124 million yen compared with theend of the previous fiscal year. Meanwhile, cash and deposits increased by 2,745 million yen. As a result, total
assets as of September 30, 2018 amounted to 79,578 million yen, a decrease of 1,390 million yen comparedwith the end of the previous fiscal year.
In liabilities, notes and accounts payable - trade and electronically recorded obligations - operating in total
decreased by 1,671 million yen from the end of the previous fiscal year. Furthermore, other current liabilities2

decreased by 1,447 million yen, mainly due to decreases affected by capital expenditure. Meanwhile, mainly
due to newly procured long-term loans, short-term loans payable and long-term loans payable in total increased
by 1,941 million yen. As a result, total liabilities decreased by 1,365 million yen from the end of the previous
fiscal year to 41,511 million yen.
Although profit attributable to owners of parent amounted to 483 million yen, net assets decreased by 25
million yen from the end of the previous fiscal year to 38,067 million yen due mainly to payment of cash
dividends.

(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, 2019, no revisions havebeen made to the forecast announced on October 18, 2018.
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, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
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 September 30, 2018

21,676
16,575
10,5571,572(13)50,36824,422
12,405
10,432
1,136(11)48,384

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

11,177
6,498
5,088
625
886
24,276
1,497

1,058
1
3,753
513
(63)
5,263
30,60080,969

1,069
1
3,898
513
(63)
5,419
31,194
79,578(Million yen)
As of March 31, 2018
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
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 September 30, 2018

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

5,945
4,193
6,560
551
320
708
28
2,877
2,128
23,313

7,598
1,134
460
6,456
167
2,400
18,21942,877

7,622
1,165
477
6,432
188
2,310
18,19741,511

2,434
2,191
33,719(10)
38,3342,434
2,191
33,725(10)
38,340

255
5
(545)
(285)
42
38,09280,969

263
13
(590)
(313)
40
38,067
79,578

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
For the six months ended September 30(Million yen)
For the six months
ended September 30, 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
Foreign exchange gains
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
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
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

For the six months
ended September 30, 201829,55722,672
6,884

26,72920,589
6,140

4,045
1,384
5,430
1,454

4,297
1,217
5,514
625

5
33
―
33
17
63
153

4
38
74
53
1
25
198

50
1
14
67
1,540

49
―
22
71
752

0
0

0
0

7
―
7
1,533
346
117
463
1,069
0
1,069

6
4
11
741
388
(128)
260
480
(2)
483

Quarterly Consolidated Statements of Comprehensive Income
For the six months ended September 30(Million yen)
For the six months
ended September 30, 2017

For the six months
ended September 30, 2018

1,069

480

16
5
11
47

7
―
8
(44)

80

(28)

1,149

452

1,149

455

0

(2)

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-controllinginterests7

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months
ended September 30, 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
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 redemption of securities
Proceeds from redemption of investment securities
Collection of loans receivable
Proceeds from withdrawal of time deposits
Payments into time deposits
Other, net
Net cash provided by (used in) investing activities

8

For the six months
ended September 30, 2018

1,533
1,226
(19)
32
(33)
(29)

741
1,270
(1)
10
(23)
(168)

(65)

17

(38)
50
(0)
7

(43)
49
(0)
6

1,347

4,175

612
(498)
620
4,747
38
(50)
(723)
4,012

124
(1,654)
985
5,489
43
(48)
(767)
4,715

(2,168)
1
(20)
(0)
30
0
0
465
(441)
15
(2,117)(3,151)
0
(3)
―
―
―
0
913
(452)
―
(2,693)

(Million yen)
For the six months
ended September 30, 2017
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of finance lease obligations
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
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
Cash and cash equivalents at end of period

9

For the six months
ended September 30, 2018

200
(538)
(225)
(0)
(477)
(0)
(1,041)

2,500
(558)
(284)
―
(477)
―
1,180

38

27

893
23,442
24,335

3,231
20,42023,651

(4) 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 six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)
There is no relevant information.
(Segment information, etc.)
1. Information on net sales and profit (loss) by reportable segment
For the six months ended September 30, 2017 (from April 1, 2017 to September 30, 2017)
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

23,897

3,846

27,743

1,813

29,557-29,557

Inter-segment net
sales or transfers

-

-

-

-

-

-

-

Total

23,897

3,846

27,743

1,813

29,557-29,557

Segment income (loss)

2,819

(182)

2,636

202

2,838

(1,384)

1,454(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

For the six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)
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

22,386

2,742

25,1291,600

26,729-26,729Inter-segment net
sales or transfers

-

-

-

-

-

-

-

Total

22,386

2,742

25,1291,600

26,729-26,729Segment income (loss)

1,825

(99)

1,725

117

1,843

(1,217)625(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.

11

3. Supplementary Information(1) Status of Production, Orders Received, and Sales
For the six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)
1) Production
Production by segment for the six months ended September 30, 2018 is as follows:(Million yen)Segment

VolumeAmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines

581,099

22,386(6.3)

Land-use engines

15,351

2,742(28.7)-

1,276(14.4)

26,405

(9.7)

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 six months ended September 30, 2018 are as follows:(Million yen)Orders received
Segment

VolumeAmountHorsepower

Order backlogs
Year-on-yearchange%Horsepower

25.3

1,233,229(5.5)

171,896(18.0)-

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

591,754

Land-use engines

79,395

Other

Total

(Notes)25,226[13,119]
5,211
[322]
1,269
[-]
31,707[13,441]

16.6

29,016[10,447]
7,799
[108]
549
[-]
37,365[10,556]

4.6
13.7(17.2)
6.0*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.

123) Sales results
Sales by segment for the six months ended September 30, 2018 are as follows:
Segment

VolumeHorsepower

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

581,099

22,38654.2(6.3)[12,131]
Land-use engines
15,351
2,742
24.9(28.7)
[683]
Other
1,600
(11.7)[-]
26,729
Total
47.9
(9.6)
[12,815](Notes) *1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (69.9%), Europe (15.9%), Latin America (9.7%), North America (3.9%), Others (0.6%)*3 The “Other” segment includes precision parts-related (780 million yen), industrial machinery-related (495 million
yen) and real estate leasing-related (324 million yen).
*4 The figures above do not include consumption taxes.

13