Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020
[Japanese GAAP]
April 28, 2020
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 Annual General Meeting of Shareholders: June 26, 2020
Scheduled date of commencing dividend payments: June 29, 2020
Scheduled date of filing annual securities report: June 26, 2020
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, 2020 (April 1, 2019 to March 31, 2020)(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, 2020
60,087
4.9
2,674
1.9
2,915
13.2
1,996
9.8
March 31, 201957,270(4.8)
2,626 (13.7)
2,576 (17.0)
1,818 (13.2)(Note) Comprehensive income: Fiscal year ended March 31, 2020: 1,878 million yen [14.0%]
Fiscal year ended March 31, 2019: 1,648 million yen [(21.9)%]
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, 2020
62.80
5.0
3.5
4.5
March 31, 2019
57.11
4.7
3.2
4.6
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2020: (23) million yen
Fiscal year ended March 31, 2019: - million yen(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

40,64539,26347.5
47.5

1,276.43
1,232.01

As of March 31, 2020
85,558
As of March 31, 201982,512(Reference) Equity: As of March 31, 2020: 40,598 million yen
As of March 31, 2019: 39,219 million yen(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2020
March 31, 2019

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

1,614
4,792

(1,137)(5,178)(77)
109

20,495
20,143

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2019
March 31, 2020
Fiscal year ending
March 31, 2021
(Forecast)

Total

Yen

Yen

Yen

Yen

-

0.00
0.00

-

15.00
15.00

15.00
15.00

-

0.00

-

15.00

15.00

Total
dividends

Payoutratio(consolidated)

Yen Million yen

477
477

Dividends
to netassets(consolidated)

%

%

26.3
23.9

1.2
1.2

-

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 toMarch 31, 2021)
The consolidated financial results forecast remains pending due to the difficulty at this stage in making
reasonable forecast calculations. Once this becomes possible going forward, the consolidated financial results
forecast will be announced promptly.
* 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, 2020: 31,850,000 shares
March 31, 2019: 31,850,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2020: 43,535 shares
March 31, 2019: 16,235 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2020: 31,790,050 sharesFiscal Year ended March 31, 2019: 31,833,765 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 toMarch 31, 2020)(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%
52,23932 (95.5)
March 31, 2020
5.0
1,609
(5.3)
1,484
16.9
March 31, 201949,755(5.9)
711 (47.6)
1,698 (28.6)
1,270 (34.8)
Basic earnings per share
Fiscal year ended
March 31, 2020
March 31, 2019(2) Non-consolidated Financial Position
Total assets
Million yen

Diluted earnings per share
Yen

Yen

46.70
39.89

-

Net assets

Equity ratio

Net assets per share

Million yen%

Yen

As of March 31, 2020
77,87633,34874,69032,382As of March 31, 2019
(Reference) Equity: As of March 31, 2020: 33,348 million yen
As of March 31, 2019: 32,382 million yen

42.8
43.4

1,048.46
1,017.23

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 toMarch 31, 2021)
The Non-consolidated financial results forecast remains pending due to the difficulty at this stage in making
reasonable forecast calculations. Once this becomes possible going forward, the consolidated financial results
forecast will be announced promptly.
* 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 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 “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)A briefing session for institutional investors and analysts is scheduled to be held on Friday, May 22, 2020. 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 ................................................................................................................................................ 3(4) Business and Other Risks.................................................................................................................................. 3
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) ...................................................................................................................... 233
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 ..................................................................................................................................................................... 31(1) Status of Production, Orders Received, and Sales (April 1, 2019 to March 31, 2020) ................................... 31(2) Changes in Directors and Corporate Auditors................................................................................................. 32

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 continued to be on a moderate
recovery trend against a backdrop of an improvement in the employment environment. However, the future
outlook remained uncertain due to factors such as the stagnation of China’s economy impacted by trade friction
between the United States and China, and the slowdown in the global economy as a result of the spread of thecoronavirus disease (COVID-19) at the end of the fiscal year.
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 2019 was 66,140 thousand gross tons, a
14.4% increase year-on-year, while order volume for new vessels fell to 41,490 thousand gross tons, a 17.7%
decrease year-on-year, amid signs that orders were being curtailed as the result of tightened environmental
regulations in January 2020. Excess shipping capacity remains unresolved, and it is believed that it will takesome time for demand for new shipbuilding to achieve a full-fledged recovery.
Under such a corporate environment, consolidated net sales for the fiscal year under review increased by
4.9% year-on-year to 60,087 million yen, operating profit increased by 1.9% year-on-year to 2,674 million yen,ordinary profit increased by 13.2% year-on-year to 2,915 million yen, and profit attributable to owners ofparent increased by 9.8% year-on-year to 1,996 million yen.
Performance by business segment of the Company and the consolidated Group for the fiscal year underreview is as follows.
<Internal combustion engines>
1. Marine-use
Due to sales of engines to the Ministry of Defense, which is a new business initiative for the Company,
increased maintenance-related sales, and other factors, net sales increased by 7.4% year-on-year to 47,739
million yen, and segment income increased by 1.4% year-on-year to 3,894 million yen.
2. Land-use
Net sales decreased by 1.0% year-on-year to 9,470 million yen and segment income decreased by 14.5% to684 million yen due to deteriorating profitability for engines in addition to a drop in items sold, and otherfactors.
Consequently, including parts sales and maintenance construction, net sales for the segment increased by
5.9% year-on-year to 57,210 million yen, and segment income decreased by 1.3% year-on-year to 4,579
million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, net sales decreased and segment income edged down due to a
decline in sales volume.
2. Real estate leasing-related
In real estate leasing-related, net sales edged down while segment income increased slightly.
3. Electricity sales-related
In electricity sales-related, net sales declined while segment income increased.
4. Precision parts-related
In precision parts-related, net sales decreased while segment income increased.
Consequently, net sales for the segment decreased by 11.7% year-on-year to 2,876 million yen, and segment
income increased by 22.6% year-on-year to 411 million yen.
In the Mid-term Management Plan covering the period from April 1, 2015 to March 31, 2020, the Company
has identified its management issue to be “Developing existing business models based on engines and parts +secure robust earnings platform through involvement and expansion of peripheral businesses.” To this end, we
have worked on the four priorities to “Speed up growth of existing businesses and overhaul earnings model,”“Speed up production reform and initiate developments at Moriyama and Himeji,” “Take in added value2

leveraging external resources and speed up strengthening of management structure,” and “Reconfigure
management resources and prepare for next phase of growth.”
We were able to achieve a certain degree of success, including an expanded lineup of larger engines anddual fuel engines, building strengthened collaborative relationships with licensees in China aimed atreorganizing the range of engine classes and the expansion of the Daihatsu brand market share, manufacturing
reforms including cost planning, and the clarification of business execution responsibilities through theintroduction of an executive officer system. However, the demand for new shipbuilding did not achieve a fullfledged recovery as predicted when formulating the Mid-term Management Plan, preventing us from achieving
our initial management targets.
From the next fiscal year onwards, partly due to the impact from the spread of COVID-19, the environmentis expected to remain severe amidst an uncertain economic outlook. However, our key management issue will
be to endeavor utilizing the restructured management base and further improve profitability.
2) Outlook for the next fiscal year
Concerning the outlook for the next fiscal year, with no end in sight to the spread of COVID-19, the impact
on the global situation, including the marine cargo market, will be significant and concerns are starting to arise
over the growing effect of strengthened global infection prevention measures on the supply chain. Since it isunclear how long this situation will continue, we are unable to make any forecasts regarding the Group’s
domestic and overseas business results, and the outlook therefore remains pending. Financial results forecasts
for the fiscal year ending March 31, 2021 will be promptly disclosed once it becomes possible to makeappropriate and reasonable calculations.

(2) Analysis of Financial Position
In assets as of the end of the fiscal year under review, notes and accounts receivable - trade increased by
1,721 million yen from the end of the previous fiscal year while the turnover period of accounts receivable was109.4 days (compared with 107.3 days at the end of the previous fiscal year). In addition, inventories increased
by 2,704 million yen while the turnover period was 70.8 days (compared with 66.4 days at the end of theprevious fiscal year). Meanwhile, property, plant and equipment decreased by 1,267 million yen compared withthe end of the previous fiscal year. Total assets as of March 31, 2020 amounted to 85,558 million yen, an
increase of 3,045 million yen compared with the end of the previous fiscal year.
In liabilities, notes and accounts payable - trade and electronically recorded obligations – operating in total
increased by 825 million yen from the end of the previous fiscal year while their turnover period was 79.4 days
(compared with 77.9 days at the end of the previous fiscal year). In addition, due to the newly procured
working capital, etc., short-term borrowings and long-term borrowings in total increased by 1,081 million yen.
The ratio of interest-bearing liabilities (excluding lease obligations) to net sales at the end of the current fiscal
year was 24.1%, an increase of 0.7 point from the end of the previous fiscal year. As a result, total liabilities
increased by 1,663 million yen from the end of the previous fiscal year to 44,912 million yen.
In net assets, retained earnings increased by 1,517 million yen from the end of the previous fiscal year to36,578 million yen. Total net assets increased by 1,382 million yen from the end of the previous fiscal year to40,645 million yen. As a result, the equity ratio at the end of the fiscal year under review was 47.5%.
(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, 2020 toMarch 31, 2023).
(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, 2020 and actual results in the future may differ
3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 60,087 million yen while interest-bearing debt (excluding
lease obligations) was 14,492 million yen. In addition, cash and cash equivalents at the end of the fiscal year
under review increased by 351 million yen. Moving forward, the Group will strengthen cash flow improvement
activities, and work toward measures to strengthen the financial standing through inventory reduction andimprovement 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) Securing human resources
The future success of the Group is highly dependent on securing outstanding human resources in such fields
as research, development, technology, manufacturing, and management. With Japan’s population on a declining
trend, competition to secure outstanding human resources is growing. In addition, if employees currently
employed retire, or if it is not possible to acquire talented personnel, the Group’s businesses, business results orfinancial conditions may be adversely affected.
5) 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.
6) 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 losses
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.
7) Risk of natural disasters, etc.
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 of a natural disastersuch as a large-scale earthquake, storm, flood, etc. as well as a fire, or an epidemic, etc. In addition, in the eventthat these disasters or accidents occur within the Group’s supply chain, such as suppliers of parts, etc., or
product delivery destinations, the shortage of supply or interrupted supply of parts, etc. from suppliers and thesuspension or reduction of production activities at product delivery destinations could have a significant
adverse effect on the Group’s production activities, sales activities and other activities.
48) Information management
In addition to information about customers and other companies, the Group handles its own trade secrets(technical information of the Group, etc.). It is possible that this information could be leaked externally as theresult of intentional acts, including unauthorized system access and cyber attacks, or negligence. The Company
is working on security measures to protect itself from external threats, but in the event of unexpected intrusion
through networks, external information leaks due to unauthorized operations, the suspension of services, andthe impact on production processes, etc., we could face liabilities for damage and significant countermeasurecosts, which could have an adverse effect on the Group’s businesses, business results or financial conditions.
9) Risk of overseas 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 23 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

Diesel engines for marine-use
Diesel engines for land-use

Daihatsu Diesel Mfg. Co., Ltd., DAIHATSU DIESEL HIMEJI CO.,Gas turbine

LTD.

Sales of parts for the above
Daihatsu Diesel Mfg. Co., Ltd., DAIHATSU DIESEL EAST
JAPAN CO., LTD., DAIHATSU DIESEL NAKANIHON CO.,Internal Marine-use/
combustion land-use
engines
engines

Diesel engines for marine-use

LTD., DAIHATSU DIESEL SHIKOKU CO., LTD., DAIHATSU

Diesel engines for land-use

DIESEL 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.
DAIHATSU DIESEL (SHANGHAI) CO., LTD.

Information handling service
Transportation

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

Other

Industrial
equipment
Real estateleasing
Electricity
sales
Precision
parts

DAITEK COMPANY INCORPORATEDMD 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. DAITEK COMPANY INCORPORATED reached a resolution to dissolve on February 27, 2020, and is in the process ofliquidation.

6

Production
DAIHATSU DIESELHIMEJI CO., LTD.

Sale of internal combustion
engines and parts
9 companies

Information handlingservice
DAITEK COMPANY
INCORPORATEDTransportation
DS CORPORATIONInternal combustion
engines(Marine-use/land-use engines)

Internal warehousemanagement
DAIHATSU DIESELPARTS SERVICE CO.,LTD.
Rental office
DAIHATSU DIESELUMEDA CITY CO., LTD.

Daihatsu Diesel
Mfg. Co., Ltd.

Generalcustomers

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. DAITEK COMPANY INCORPORATED reached a resolution to dissolve on February 27, 2020, and is in the process of liquidation.

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, 2019
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

9

As of March 31, 2020

20,90517,098
10,2691,931(12)50,193

21,17018,82012,9742,125(13)55,078

10,883
6,899
5,088
113
836
23,821
1,442

10,254
6,366
5,088
132
714
22,554
1,139

2,836
1
3,589
681
(53)
7,055
32,31982,512

2,583
0
3,586
671
(55)
6,786
30,48085,558(Million yen)
As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease obligations
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for bonuses for directors (and other officers)
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

10

As of March 31, 2020

7,297
5,328
6,193
562
414
2,851
703
45
1,900
25,296

7,661
5,789
4,455
511
645
2,724
670
51
1,838
24,347

7,217
1,077

10,036
737

521

76

6,618
206
2,310
17,95343,249

6,913
193
2,608
20,56544,9122,434
2,191
35,060(10)
39,6752,434
2,191
36,578(28)
41,175

180
7
(643)
(455)
43
39,26382,512

155
(141)
(591)
(576)
46
40,64585,558

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2019
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
Outsourcing 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 loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
National subsidies
Subsidy income
Other
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on sales of non-current assets
Loss on valuation of investment securities
Loss on valuation of golf club membership
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

11

For the fiscal year
ended March 31, 2020

57,27044,16013,10960,08747,667
12,4198,132
2,351
10,483
2,626

7,429
2,315
9,745
2,674

12
45
49
226
3
133
469

11
45
–
47
0
345
450

104

100

–

23

–
415
519
2,576

30
54
209
2,915

0
239
–
8
247

0
–
112
110
222

11
–
–
4
15
2,808
750
239
990
1,818
0
1,818

18
2
47
–
68
3,070
1,069
1
1,070
1,999
3
1,996

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2019
ProfitOther 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 of parent
Comprehensive income attributable to non-controllinginterests

12

For the fiscal year
ended March 31, 2020

1,818

1,999

(75)
2
(97)

(24)
(29)
51

–

(118)

(170)
1,648

(121)
1,878

1,648

1,875

0

3

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2019
(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity2,191

33,719(10)

38,3342,434

Changes during period
Dividends of surplus

(477)

(477)

Profit attributable to ownersof parent

1,818

1,818

Purchase of treasury shares
Disposal of treasury shares
Transfer of loss on disposal oftreasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

-

-

1,340

-

1,340

2,434

2,191

35,060(10)

39,675

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

255

-

5

(545)

(285)

42

Total net
assets38,092

Changes during period
Dividends of surplus(477)

Profit attributable to ownersof parent

1,818

Purchase of treasury shares-

Disposal of treasury shares-

Transfer of loss on disposalof treasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes in items otherthan shareholders' equity

(75)

-

2

(97)

(170)

0

(169)

Total changes during period

(75)

-

2

(97)

(170)

0

1,170

Balance at end of period

180

-

7

(643)

(455)

43

39,26313

For the fiscal year ended March 31, 2020
(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity2,191

35,060(10)

39,6752,434

Changes during period
Dividends of surplus

(477)

(477)

Profit attributable to ownersof parent

1,996

1,996

Purchase of treasury shares
Disposal of treasury shares(1)

Transfer of loss on disposal oftreasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes in items otherthan shareholders' equity

1

Total changes during period
Balance at end of period

(77)

(77)

59

58

(1)

-

-

1,517

(17)

1,500

2,434

2,191

36,578(28)

41,175

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

180

-

7

(643)

(455)

43

Total net
assets39,263

Changes during period
Dividends of surplus(477)

Profit attributable to ownersof parent

1,996

Purchase of treasury shares(77)

Disposal of treasury shares

58

Transfer of loss on disposalof treasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes in items otherthan shareholders' equity

(24)

-

(148)

51

(121)

3

(118)

Total changes during period

(24)

-

(148)

51

(121)

3

1,382

Balance at end of period

155

-

(141)

(591)

(576)

46

40,64514

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2019
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 bonuses for directors(and other officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Interest and dividend income
Interest expenses
Loss (gain) on valuation of investment securities
Loss on valuation of golf club memberships
Loss (gain) on sales of property, plant and equipment
Loss on abandonment of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease/increase in consumption taxes
receivable/payable
Increase (decrease) in guarantee deposits received
Other, net
SubtotalInterest and dividends received
Interest 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
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Purchase of shares of subsidiaries and associates
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, 2020

2,808
2,670
(10)
5

3,070
2,771
3
(33)

(6)

6

(142)

208

61

(445)

(57)
104
–
4
(0)
11
(525)
287
840

(57)
100
47
–
2
18
(1,788)(2,706)
913

377

(205)

(87)
(402)
5,939
57
(104)
(1,099)
4,792

(19)
547
2,433
57
(101)
(775)
1,614

(3,781)0(2)0–(1,859)
0
1,340
(876)
–
(5,178)(1,214)
2
(50)
–
(24)
–
0
750
(711)
110
(1,137)

(Million yen)
For the fiscal year
ended March 31, 2019
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Net increase (decrease) in short-term borrowings
Repayments of finance lease obligations
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

16

For the fiscal year
ended March 31, 2020

2,500
(1,333)
–
(477)
–
(579)
109

4,250
(3,020)
(77)
(477)
(155)
(597)
(77)

(1)

(47)

(276)
20,42020,143351
20,143
20,495(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 have material
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(1) Number of affiliates accounted for by the equity method: 1
OFFICINE MECCANICHE TORINO S.p.A(2) 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, and theiroverall 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, 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 averageremaining 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.
18

(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, 2019
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Other(Notes)*1

Total

Marine-use
engines

Land-useengines

44,4489,564

54,013

3,256

57,270-57,270

-

-

-

-

-

-

-

44,4489,564

54,013

3,256

57,270-57,270

Segment income

3,840

801

4,641

335

4,977

(2,351)

2,626

Other
Depreciation

1,799

379

2,178

331

2,510

159

2,670

Total

Net sales(1) Net sales to outside
customers(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, 2020
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Other(Notes)*1

Total

Marine-use
engines

Land-useengines

47,7399,470

57,2102,876

60,087-60,087

-

-

-

-

-

-

-

47,7399,470

57,2102,876

60,087-60,087

Segment income

3,894

684

4,579

411

4,990

(2,315)

2,674

Other
Depreciation

1,914

370

2,285

337

2,622

148

2,771

Total

Net sales(1) Net sales to outside
customers(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, 2019
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
30,752Latin America
18,640

Other

2,210

Total
5,667

57,270(Note) Country and region categories are based on geographic proximity.
2) 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, 2020
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
32,627

Latin America
18,674

1,761

Other

Total
7,023

60,087(Note) Country and region categories are based on geographic proximity.
2) 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, 2019

Category
Net assets per share
Basic earnings per share

For the fiscal year
ended March 31, 2020

1,232.01 yen

1,276.43 yen

57.11 yen62.80 yen

(Note) The basis for the calculation of basic earnings per share is as follows.
For the fiscal year
ended March 31, 2019

Category

For the fiscal year
ended March 31, 2020

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

1,818

Amount not attributable to shareholders of common shares(Million yen)
Profit attributable to owners of parent relating to common
1,818
shares (Million yen)
Average number of shares of common shares outstanding
31,833,765 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

1,996
1,996
31,790,050 shares5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(Million yen)
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Raw materials
Work in process
Prepaid expenses
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, 2020

17,813
1,090
15,412
96
9,685
630
870
1,036
(4)
46,631

17,308999
17,902
107
12,314
610
885
1,072
(4)
51,196

4,895
1,632
6,052
351
757
4,511
110
18,311

4,660
1,501
5,549
299
653
4,511
123
17,299

1,423
7
1,431

1,117
12
1,130

745
3,956
1
3,205
414
(8)
8,315
28,05874,690

655
3,981
0
3,254
367
(8)
8,251
26,68077,876

(Million yen)
As of March 31, 2019
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable
Accrued expenses
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for bonuses for directors (and other officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Long-term guarantee deposits
Provision for retirement benefits
Provision for retirement benefits for directors (andother officers)
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction entry of noncurrent assets
Reserve 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
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

25

As of March 31, 2020

968
6,164
5,361
3,375
2,764
554
322
2,611
55
379
4,824
531
45
222
28,181

1,095
6,429
5,765
3,220
1,191
501
131
2,671
99
506
5,324
504
45
179
27,665

7,120
1,061
10
5,362

9,983
717
10
5,713

443

–

129
–
14,12642,307115
322
16,86344,528

2,434

2,434

2,150
2,150

2,150
2,150

221

221

234

216

1
25,6001,572
27,40827,630(10)
32,204026,3901,807
28,414
28,636(28)
33,193

177
177
32,382
74,690154
154
33,34877,876

(2) Non-consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2019
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
National subsidies
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries andassociates
Loss on valuation of golf club membership
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit26

For the fiscal year
ended March 31, 2020

49,75541,741
8,013
7,302
711

52,23945,393
6,846
6,813
32

1,079
392
1,472

1,371
321
1,693

102
382
484
1,698

100
16
116
1,609

0
232
–
233

0
–
112
112

9
–

17
47

299

–

4
313
1,618
111
236
348
1,270

–
65
1,656
200
(28)
172
1,484

(3) Non-consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2019
(Million yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning of
periodSharecapitalLegalcapitalsurplus

2,434

2,150

Other
capitalsurplus-

Total capitalsurplusLegalretainedearnings

2,150

221

Reserve fortax purpose
Reserve for
reduction
specialentry ofdepreciation
non-current
assetsGeneralreserve

Retainedearnings
brought
forwardTotal
retainedearnings

24,2002,306

26,837

(477)

(477)

(1,400)

-

15

-

161

(161)

-

(19)

19

-

1,270

1,270

91

17

Changes during period
Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve fortax purpose reduction
entry of non-current
assets
Reversal of reserve fortax purpose reduction
entry of non-current
assetsProfitPurchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

1,400
(15)

-

-

-

-

-

142

(15)

1,400

(733)

792

2,434

2,150

-

2,150

221

234

1

25,600

1,572

27,63027

Shareholders’ equity

Valuation
Total
difference onshareholders’ available-forequity
sale
securities

TreasurysharesBalance at beginning of
periodValuation and translation adjustments(10)

31,412

Deferred
gains orlosses onhedgesTotalvaluation andtranslation
adjustments

Total net
assets-251

31,663

251

Changes during period
Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve fortax purpose reduction
entry of non-current
assets
Reversal of reserve fortax purpose reduction
entry of non-current
assetsProfitPurchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

(477)

(477)

-

-

-

-

-

-

-

-

1,270

1,270

-

-

-

-

-

-

(74)

-

(74)

(74)

-

792

(74)

-

(74)

718

(10)

32,204

177

-

177

32,38228

For the fiscal year ended March 31, 2020
(Million yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning of
periodSharecapitalLegalcapitalsurplus

2,434

2,150

Other
capitalsurplus-

Total capitalsurplusLegalretainedearnings

2,150

221

Reserve fortax purpose
Reserve for
reduction
specialentry ofdepreciation
non-current
assetsGeneralreserve

Retainedearnings
brought
forwardTotal
retainedearnings

25,600

1,572

27,630

(477)

(477)

(790)

-

0

-

5

(5)

-

(23)

23

-

1,484

1,484

234

1

Changes during period
Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve fortax purpose reduction
entry of non-current
assets
Reversal of reserve fortax purpose reduction
entry of non-current
assetsProfitPurchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

790
(0)

(1)

(1)

1

1

(1)

(1)

-

-

-

-

-

(17)

(0)

790

234

1,006

2,434

2,150

-

2,150

221

216

0

26,3901,807

28,63629

Shareholders’ equity

TreasurysharesBalance at beginning of
period(10)

Valuation and translation adjustments

Valuation
Total
difference onshareholders’ available-forequity
sale
securities
32,204

Deferred
gains orlosses onhedgesTotalvaluation andtranslation
adjustments

Total net
assets-177

32,382

177

Changes during period
Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve fortax purpose reduction
entry of non-current
assets
Reversal of reserve fortax purpose reduction
entry of non-current
assetsProfitPurchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

(477)

(477)

-

-

-

-

-

-

-

-

1,484

1,484

(77)

(77)

(77)

59

58

58

-

-

(22)

-

(22)

(22)

(17)

988

(22)

-

(22)

965

(28)

33,193

154

-

154

33,34830

6. Other(1) Status of Production, Orders Received, and Sales (April 1, 2019 to March 31, 2020)
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

1,110,134

47,7397.4

Land-use engines

88,400

9,470

(1.0)

-

2,238

(14.4)

59,449

5.0

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)Orders received
Segment

VolumeAmountHorsepower

Order backlogs
Year-on-yearchange%Horsepower(0.4)

1,183,078(1.1)

118,246(3.7)-

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

1,121,444

Land-use engines

90,206

Other

Total

46,518[26,240]
9,380
[959]
2,446
[-]
58,345[27,200](0.6)

27,196[8,414]
5,163
[588]
689
[-]
33,049[9,003]

(4.3)
(1.7)
43.2
(3.2)

(Notes)*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.

31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

1,110,134

Land-use engines

88,400Other

47,739[26,799]
9,470
[659]
2,876
[-]
60,087[27,459]

Total

56.1

7.4

7.0

(1.0)

-

(11.7)

45.7

4.9(Notes)*1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (68.0%), Europe (20.0%), Latin America (6.4%), North America (3.2%), Others (2.4%)*3 The “Other” segment includes precision parts-related (1,298 million yen), industrial machinery-related (940 million yen) andreal estate leasing-related (638 million yen).
*4 The figures above do not include consumption taxes.

(2) Changes in Directors and Corporate Auditors (Scheduled on June 26, 2020)
1. Changes in Representatives
Newly Promoted Director:
Chairman and Representative
Director
President and Representative
Director

Shigeki Kinoshita (currently President and Representative Director)
Yoshinobu Hotta (currently Vice President and Representative Director)

2. Candidates for Newly Appointed Directors:
Toshiki Sanaga (currently Managing Executive Officer)
Hiroko Ameno (currently Professor, Faculty of Business and Commerce,
Kansai University,
Outside Director of SENKO Group Holdings Co., Ltd.)
3. Retiring Directors:
Takeshi Harada (currently Chairman)
Osamu Goda (currently Vice President and Representative Director)
Isamu Teraoka (currently Director and Managing Executive Officer)

32

(Reference)
New Management Team (Scheduled on June 26, 2020)(Directors)
ChairmanPresident and Representative
Director
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Outside Director
Outside Director
Outside Director(Staturory Auditors)
Standing Statutory Auditor
Outside Statutory Auditor
Outside Statutory Auditor(Executive Officers)
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Shigeki Kinoshita
Yoshinobu Hotta
Yoichi Hayata
Hideki Asada
Takashi Mizushina
Shinichi Nanba
Toshiki Sanaga
Tamon Tsuda (currently Certified Public Accountant)Kazuo Komatsu (currently Attorney-at-law, Kitahama Partners, Foreign
Law Joint Enterprise)
Hiroko Ameno (currently Professor, Faculty of Business and Commerce,
Kansai University)

Atsumi Masada
Noriyoshi Matsushita (currently Director, Daihatsu Motor Co.,Ltd.)Norihide Bessyo (currenyly Standing Statuory Auditor, Daihatsu Motor
Co.,Ltd.)

Tetsuya Bando
Takashi Hanamure
Shuji Kawano
Tomohiro Miyoshi
Isao Wakamiya
Masaki Hama
Shunji Minami

33