Consolidated Financial Results
for the Three Months Ended June 30, 2016
[Japanese GAAP]
July 26, 2016
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: Yuichi Uemura, Managing director
Phone: +81-6-6454-2331
Scheduled date of filing quarterly securities report: August 9, 2016
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2016 (April 1, 2016 to June 30, 2016)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net income
Net sales
Operating income
Ordinary income
attributable toowners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2016
12,905(0.1)
516 (60.9)
393 (69.5)
303 (66.8)
June 30, 2015
12,9244.9
1,320 130.8
1,288 120.6
914 168.0(Note) Comprehensive income: Three months ended June 30, 2016: 149 million yen [(83.9)%]
Three months ended June 30, 2015: 926 million yen [111.4%]
Basic earnings per share

Three months ended
June 30, 2016
June 30, 2015
(2) Consolidated Financial Position
Total assets
Million yen

Diluted earnings per share
Yen

Yen

9.54
28.71

-

Net assets

Equity ratio

Million yen%

33,923As of June 30, 2016
74,551
As of March 31, 2016
75,06034,224(Reference) Equity: As of June 30, 2016: 33,859 million yen
As of March 31, 2016: 34,204 million yen

45.4
45.6

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Year-end

Fiscal year ended
Yen
Yen
Yen
March 31, 2016
0.00
March 31, 2017
Fiscal year ending
March 31, 20170.00
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None

Total
Yen

Yen

15.00

15.00

15.00

15.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2017 (April 1, 2016 to
March 31, 2017)(% indicates changes from the previous corresponding period.)
Net sales
Million yen%

Operating income

Ordinary income

Net income
attributable toowners of parent

Million yen

Million yen

Million yen%%

First half
28,0005.9
1,700 (9.8)
1,700 (7.3)
Full year
63,000 10.5
5,000 (9.0)
5,000 (8.1)(Note) Revision to the financial results forecast announced most recently: None

1,200
3,500

Basic earnings
per share

%

Yen

(2.2)
(2.7)

37.67
109.89* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in changes in scope of consolidation): No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2016: 31,850,000 shares
March 31, 2016: 31,850,000 shares2) Total number of treasury shares at the end of the period:
June 30, 2016: 16,170 shares
March 31, 2016: 16,170 shares
3) Average number of shares during the period:
Three months ended June 30, 2016: 31,833,830 shares
Three months ended June 30, 2015: 31,834,132 shares

* Presentation regarding the implementation status of the quarterly review procedures
These quarterly financial results are outside the scope of quarterly review procedures under the Financial
Instruments and Exchange Act. At the time of disclosure of these quarterly financial results, review proceduresfor the quarterly financial statements under the Financial Instruments and Exchange Act have not been
completed.
* 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 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 “Explanation of Consolidated
Financial Results Forecast and Other Forward-looking Information” on page 3 of the attached material for theassumptions the financial results forecasts are based on, and notes on their use.

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review ................................ 2(1) Explanation of Operating Results ........................................................................................................... 2(2) Explanation of Financial Position ........................................................................................................... 2(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ....... 3
2. Matters Concerning Summary Information (Notes) ..................................................................................... 4(1) Changes in Significant Subsidiaries during the Three Months Ended June 30, 2016............................. 4(2) Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial Statements...4(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement .... 4
3. Quarterly Consolidated Financial Statements .............................................................................................. 5(1) Quarterly Consolidated Balance Sheets .................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income .......................................... 7(3) Notes to the Quarterly Consolidated Financial Statements..................................................................... 9(Notes on going concern assumption)....................................................................................................... 9(Notes in the case of significant changes in shareholders’ equity) ........................................................... 9(Segment information, etc.) ...................................................................................................................... 9
4. Supplementary Information ........................................................................................................................ 11(1) Status of Production, Orders Received, and Sales ................................................................................ 111

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the three months under review (from April 1, 2016 to June 30, 2016), the Japanese economy was ona moderate recovery track against the backdrop of the government’s economic policies, etc., but due to theimpact of the UK’s exit from the EU and concerns over a deceleration in overseas markets such as China, yen
appreciation and low stock prices persisted from the beginning of 2016, and the economy continued to have an
uncertain outlook for the future.
Under such a corporate environment, although the Company advanced active business expansion,consolidated net sales decreased by 0.1% year-on-year to 12,905 million yen. In terms of profit, operating
income decreased by 60.9% year-on-year to 516 million yen, ordinary income decreased by 69.5% year-onyear to 393 million yen, and profit attributable to owners of parent decreased by 66.8% year-on-year to 303
million yen.
Performance by business segment of the Company and the consolidated Group are as follows.
<Internal combustion engines>
1. Marine-use
While sales of engines centered on mainstay auxiliary power generators increased, net sales decreased by
3.7% year-on-year to 11,006 million yen, and segment income decreased by 48.1% year-on-year to 1,012
million yen, owing to decreased maintenance-related sales and the impact of exchange rates.
2. Land-use
Although sales of engines increased, due to a decrease in maintenance-related sales, etc., net sales increased
by 15.3% year-on-year to 1,077 million yen and segment income decreased by 42.0% year-on-year to 23
million yen.
Consequently, net sales for the segment decreased by 2.2% year-on-year to 12,084 million yen, and segment
income decreased by 48.0% year-on-year to 1,036 million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, a decrease in unit sales caused both net sales and segment income todecrease.
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
Following the making of Nippon Nozzle Seiki Co., Ltd. a consolidated subsidiary, precision parts-related
was newly added.
Consequently, net sales for the segment increased by 46.2% year-on-year to 821 million yen, and segment
income increased by 12.8% year-on-year to 109 million yen.

(2) Explanation of Financial Position
In assets as of the end of the first quarter under review, notes and accounts receivable - trade decreased by
3,333 million yen from the end of the previous fiscal year due to a progress in collection of trade receivables atthe end of the previous fiscal year. Meanwhile, inventories increased by 1,160 million yen from the end of theprevious fiscal year. As a result, total assets as of June 30, 2016 amounted to 74,551 million yen, a decrease of
508 million yen compared with the end of the previous fiscal year.
2

In liabilities, notes and accounts payable - trade and electronically recorded obligations in total increased by
461 million yen from the end of the previous fiscal year. Meanwhile, due to payment of income taxes, etc.,
income taxes payable decreased by 1,112 million yen. As a result, total liabilities decreased by 208 million yen
from the end of the previous fiscal year to 40,627 million yen.
In net assets, retained earnings decreased by 190 million yen due to payment of cash dividends, etc. As aresult, total net assets decreased by 300 million yen from the end of the previous fiscal year to 33,923 million
yen.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
As to the consolidated financial results forecast for the fiscal year ending March 31, 2017, no revisions havebeen made to the forecast announced on April 27, 2016.
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. Matters Concerning Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Three Months Ended June 30, 2016
There is no relevant information.
(2) Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial
Statements
There is no relevant information.
(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(Changes in accounting policies)
At certain consolidated subsidiaries, in line with revisions to the Corporation Tax Act, the “Practical
Solution on a change in depreciation method due to Tax Reform 2016” (Practical Issues Task Force (“PITF”)
No. 32; June 17, 2016) has been adopted for the three months ended June 30, 2016. As a result of the adoption,
the depreciation method for facilities attached to buildings and structures acquired on or after April 1, 2016has been changed from the declining balance method to the straight-line method.
The effect of this change to the quarterly consolidated financial statements for the three months underreview is immaterial.

43. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2016
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

5

As of June 30, 2016

21,412
16,967
12,148
1,873
1,548
(9)
53,94023,518
13,634
13,308
1,868
889
(11)
53,207

6,690
3,648
4,403
674
729
16,146
728

6,940
4,391
4,725
65
1,031
17,155
731

1,715
2
2,048
510
(33)
4,244
21,11975,060

939
2
2,027
500
(13)
3,457
21,34374,551

(Million yen)
As of March 31, 2016
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

6

As of June 30, 2016

7,941
4,284
6,563
287
1,249
713
85
2,867
3,118
27,110

7,797
4,890
6,378
295
137
257
22
2,628
4,244
26,652

3,304
621
463
6,718
137
2,480
13,72540,836

3,421
603
391
6,921
158
2,478
13,974
40,6272,434
2,170
30,275(10)
34,8702,434
2,170
30,085(10)
34,680

205
39
(910)
(665)
19
34,22475,060

157
2
(23)
(956)
(820)
63
33,92374,551

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
For the three months ended June 30(Million yen)
For the three months
ended June 30, 2015
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 income
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 income
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
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

For the three months
ended June 30, 2016

12,924
8,911
4,012

12,905
9,775
3,130

1,922
769
2,691
1,320

1,984
629
2,613
516

6
8
3
3
9
31

2
7
25
1
9
46

31
24
8
64
1,288

28
137
3
168
393

5
−
5

0
69
69

1
0
2
1,291
233
142
376
914
0
914

9
−
9
452
91
57
148
304
0
303

Quarterly Consolidated Statements of Comprehensive Income
For the three months ended June 30(Million yen)
For the three months
ended June 30, 2015
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

8

For the three months
ended June 30, 2016
914

304

27
5
60
(81)

(47)
2
(62)
(46)

12

(154)

926

149

926

149

0

0

(3) Notes to the Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Notes in the case of significant changes in shareholders’ equity)
For the three months ended June 30, 2016 (from April 1, 2016 to June 30, 2016)
There is no relevant information.
(Segment information, etc.)
1. Information on net sales and profit (loss) by reportable segment
For the three months ended June 30, 2015 (from April 1, 2015 to June 30, 2015)(Million yen)Amountrecorded in
Quarterly
Adjustment
Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Total

Net sales
Net sales to outside
customers

11,428934

12,362561

12,924-

12,924

Inter-segment net
sales or transfers

-

-

-

-

-

-

-

11,428934

12,362561

12,924-

12,924

1,952

40

1,992

97

2,090

(769)

1,320

Total
Segment income(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, and the electricity sales-related business.
*2 The adjustment for segment income represents corporate expenses, largely consisting of general and administrative
expenses not attributable to the reportable segments.
*3 Segment income is adjusted with operating income on the Quarterly Consolidated Statements of Income.

9For the three months ended June 30, 2016 (from April 1, 2016 to June 30, 2016)(Million yen)Amountrecorded in
Quarterly
Adjustment
Consolidated(Note) *2
Financial
Statements(Notes)*3

Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Total

Net sales
Net sales to outside
customers

11,006

1,077

12,084821

12,905-

12,905Inter-segment net
sales or transfers

-

-

-

-

-

-

-

11,006

1,077

12,084821

12,905-

12,905

1,012

23

1,036

109

1,146

(629)

516

Total
Segment income(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 general and administrative
expenses not attributable to the reportable segments.
*3 Segment income is adjusted with operating income on the Quarterly Consolidated Statements of Income.

10

4. Supplementary Information(1) Status of Production, Orders Received, and Sales
For the three months ended June 30, 2016 (from April 1, 2016 to June 30, 2016)
1) Production
Production by segment for the three months ended June 30, 2016 is as follows:(Million yen)Segment

VolumeAmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines

284,749

11,006(3.7)

Land-use engines

2,362

1,077

15.3

-

659

64.1

12,744

(0.2)

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

2) Orders received
Orders by segment for the three months ended June 30, 2016 are as follows:(Million yen)Orders received
Segment

VolumeAmountHorsepower

Order backlogs
Year-on-year
quarterlychange%Horsepower

0.5

2,156,192

51.1

125,902

80.3-

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

441,610Land-use engines

37,821

Other

Total

12,652[6,875]
3,958
[135]
749
[-]
17,360[7,010]11.1

39,369[24,126]
6,620
[13]
583
[-]
46,573[24,140]

24.8
17.7
297.6
24.8

(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.

113) Sales results
Sales by segment for the three months ended June 30, 2016 are as follows:
Segment

VolumeHorsepower

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

284,749

Land-use engines

2,362

Other

11,006[5,949]
1,077
[135]
821
[-]
12,905[6,084]

Total

54.1

(3.7)

12.5

15.3

-

46.2

47.1

(0.1)

(Notes)*1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (71.4%), Europe (16.5%), Latin America (8.4%), North America (3.4%), Others (0.3%)*3 The “Other” segment includes precision parts-related (366 million yen), industrial machinery-related (293
million yen) and real estate leasing-related (161 million yen).
*4 The figures above do not include consumption taxes.

12