Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
[Japanese GAAP]
April 28, 2022
Company name: Daihatsu Diesel Mfg. Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 6023
URL: http://www.dhtd.co.jp
Representative: Yoshinobu Hotta, President
Contact: Takashi Mizushina, Director and Managing Executive Officer
Phone: +81-6-6454-2331
Scheduled date of Annual General Meeting of Shareholders: June 29, 2022
Scheduled date of commencing dividend payments: June 30, 2022
Scheduled date of filing annual securities report: June 29, 2022
Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled (for institutional investors and analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(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, 2022
57,5991.5
2,092 110.4
2,506 118.1
1,968 176.4
March 31, 2021
56,745(5.6)
994 (62.8)
1,149 (60.6)
712 (64.3)(Note) Comprehensive income: Fiscal year ended March 31, 2022: 2,330 million yen [135.0%]
Fiscal year ended March 31, 2021: 991 million yen [(47.2)%]
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, 2022
62.01
4.7
3.0
3.6
March 31, 2021
22.43
1.7
1.4
1.8
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2022: 13 million yen
Fiscal year ended March 31, 2021: 43 million yen(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

43,06941,21448.2
51.2

1,354.99
1,296.22

As of March 31, 2022
89,268
As of March 31, 2021
80,381(Reference) Equity: As of March 31, 2022: 43,030 million yen
As of March 31, 2021: 41,166 million yen(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2022
March 31, 2021

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

7,870
3,035

(1,300)(1,847)84(2,310)26,354
19,509

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2021
March 31, 2022
Fiscal year ending
March 31, 2023
(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

476
476

Dividends
to netassets(consolidated)

%

%

66.9
24.2

1.2
1.1

21.7

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 toMarch 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Operating profit
Ordinary profit
owners of parent
per share

Net salesFirst half
Full year

Million yen

29,00065,000% Million yen

24.1
12.8

200
2,700

% Million yen(38.3)
29.0

200
2,700

% Million yen(67.6)
7.7

200
2,200

%

(66.6)
11.8

Yen

6.27
69.07

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges 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: Yes
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, 2022: 31,850,000 shares
March 31, 2021: 31,850,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2022: 93,335 shares
March 31, 2021: 90,935 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2022: 31,738,730 sharesFiscal Year ended March 31, 2021: 31,740,671 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 toMarch 31, 2022)(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%
50,292(149)
March 31, 2022
1.8
1,936 403.8
2,188 201.5
March 31, 2021
49,409(5.4)(1,421)384 (76.1)
725 (51.1)
Basic earnings per share
Fiscal year ended
March 31, 2022
March 31, 2021

Diluted earnings per share
Yen

Yen

68.94
22.86

-

(2) Non-consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

As of March 31, 2022
81,16735,417
73,12033,666
As of March 31, 2021
(Reference) Equity: As of March 31, 2022: 35,417 million yen
As of March 31, 2021: 33,666 million yen

43.6
46.0

1,115.26
1,060.05

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 toMarch 31, 2023)(% indicates changes from the previous corresponding period.)
Net salesFirst half
Full year

Million yen

25,00057,000

%

24.9
13.3

Million yen

700
1,700

Basic earnings
per share

ProfitOrdinary profit%(58.6)(12.2)

Million yen

1,000
1,800

%

(45.6)(17.7)

Yen

31.39
56.51

* 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 “1. Summary of Operating Resultsand Others (4) Future Prospects” on page 4 (Japanese original) of the attached material for the assumptions thefinancial 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 Wednesday, May 25, 2022.
The briefing materials will be posted on the Company’s website after the session.

Table of Contents
1. Summary of Operating Results, etc. ....................................................................................................................... 2(1) Summary of Operating Results for the Fiscal Year under Review .................................................................... 2(2) Summary of Financial Position for the Fiscal Year under Review.................................................................... 3(3) Summary of Cash Flows for the Fiscal Year under Review .............................................................................. 4(4) Outlook for the Future ....................................................................................................................................... 4
2. Basic Stance Concerning Choice of Accounting Standards .................................................................................... 6
3. Consolidated Financial Statements and Primary Notes .......................................................................................... 7(1) Consolidated Balance Sheets ............................................................................................................................ 7(2) Consolidated Statements of Income and Comprehensive Income .................................................................... 9(3) Consolidated Statements of Changes in Equity............................................................................................... 11(4) Consolidated Statements of Cash Flows ......................................................................................................... 13(5) Notes to the Consolidated Financial Statements ............................................................................................. 15(Notes on going concern assumption)............................................................................................................... 15(Changes in accounting policy) ........................................................................................................................ 15(Segment information, etc.) .............................................................................................................................. 16(Per share information) ..................................................................................................................................... 19(Significant subsequent events) ........................................................................................................................ 19
4. Other ..................................................................................................................................................................... 20(1) Status of Production, Orders Received, and Sales .......................................................................................... 20(2) Changes in Directors and Corporate Auditors ................................................................................................. 21

1

1. Summary of Operating Results, etc.
(1) Summary of Operating Results for the Fiscal Year under Review
During the consolidated fiscal year under review, the Japanese economy continued to remain uncertain due to therapid spread of the novel coronavirus (COVID-19)by new variant, manifestation of supply-demand imbalance ofraw materials, etc., ongoing depreciation of the yen, increased geopolitical risks due to Russia’s invasion of Ukraine,
etc. while there were some signs of recovery due to the gradual resumption of economic activities owing to the
spreading of vaccination against COVID-19, etc. and progress in economic stimulus measures.
In the shipbuilding and maritime industry, the primary industry in which the Company makes its sales, global
new shipbuilding completions during 2021 was 60,000 thousand gross tons, a 2.9% increase year-on-year, whileorder volume for new vessels increased to 85,070 thousand gross tons, a 106.5% increase year-on-year, against the
backdrop of an improvement in the willingness to invest by ship-owners who had restrained their orders last year, in
response to the soaring marine transportation market and a sign of higher vessel prices due to increased cargo volume
and disruptions in the marine transport network. Furthermore, in response to the global trend toward decarbonizationand heightened environmental awareness, vessels equipped with conventional diesel engines powered by heavy fueloil are being replaced by vessels equipped with dual fuel engines that can also be fueled by liquefied natural gas(LNG), which emits less CO2 in the shipbuilding and maritime industry.
Under such a corporate environment, the Group has promoted sales activities that meet diversifying needs, andhas made efforts to strengthen its competitiveness by such initiatives as developing new technologies for nextgeneration fuels to achieve a carbon-neutral society, in anticipation of the growing markets. As a results, consolidated
net sales for the fiscal year under review increased by 1.5% year-on-year to 57,599 million yen. In terms of profit,
operating profit increased by 110.4% year-on-year to 2,092 million yen, ordinary profit increased by 118.1% yearon-year to 2,506 million yen, and profit attributable to owners of parent increased by 176.4% year-on-year to 1,968
million yen due to recording income taxes-deferred of negative 525 million yen as a result of an increase due totemporary differences.
Performance by business segment of the Company and the consolidated Group for the fiscal year under review
are as follows.
<Internal combustion engines>
1. Marine-use
Amid a decrease in sales of engines, primarily to the Ministry of Defense, although maintenance-related sales
increased, net sales decreased by 2.0% year-on-year to 43,685 million yen, and segment income decreased by 28.9%
year-on-year to 2,316 million yen, due to the product lineup of dual fuel engines and advanced development of new
fuel-compatible engines, etc.
2. Land-use
Net sales increased by 19.0% year-on-year to 10,192 million yen while a segment income of 1,589 million yen
was recorded (a segment loss of 697 million yen in the previous fiscal year) due to factors such as an increase inmaintenance-related sales, in addition to an increase in sales of engines.
Consequently, net sales for the segment increased by 1.4% year-on-year to 53,877 million yen, and segment
income increased by 52.5% year-on-year to 3,906 million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, net sales increased due to the change of sales mix while segment income
decreased due to soaring raw materials prices.
2. Real estate leasing-related
In real estate leasing-related, both net sales and segment income decreased slightly.
3. Electricity sales-related
In electricity sales-related, net sales decreased slightly while segment income decreased.
2

4. Precision parts-related
In precision parts-related, both net sales and segment income decreased.
Consequently, net sales for the segment increased by 3.3% year-on-year to 3,722 million yen, and segment
income decreased by 24.9% year-on-year to 418 million yen.
Under the Mid-term Management Plan covering the period from April 1, 2020 to March 31, 2023, the Group has
promoted the following four key initiatives to respond to the needs of its customers and achieve sustainable growth.
1. Expand sales domains and increase our share strategically by introducing new products to the market
2. Develop technology with a view to the next-generation energy
3. Improve production efficiency through synergic effects among production bases
4. Establish a solid earnings base and pursue ESG management
During the consolidated fiscal year under review, we have developed and completed a lineup of four forms ofdual fuel engines, which are able to operate switching between liquid fuel and gas fuel, in order to further reduce
environmental impact. As a result, we received orders for approximately 100 engine units primarily for megacontainer ships for which conversion to dual fuel is progressing, and automobile carriers.
Furthermore, in order to respond to zero emission ships which are expected to emerge following dual fuel engines,
we have focused on the advanced development of engines compatible with new fuels, including ammonia andhydrogen. We are actively working with industry, academia, and government to establish internal combustion engine
technologies as the next-generation fuels, as evidenced by the fact that “technology development for hydrogen fuelpromotion plants for ocean-going vessels,” proposed jointly with Mitsui E&S Machinery Co., Ltd., has been adopted
for the technology development support project for promoting maritime industry intensive collaboration by the
Ministry of Land, Infrastructure, Transport and Tourism.
In addition, our Himeji Factory, a newly- build factory constructed in 2018 in anticipation of the shift to large
vessels aimed at more efficient marine transport, responds to the rush to build large container ships by enhancing its
operating capacity. Through our dual-base production system, comprising the Moriyama Factory, which specializes
in the manufacture of small and medium scale engines, and the Himeji Factory, we will strive to achieve more
efficient production in the future.
The Group has worked on initiatives that contribute to the achievement of a sustainable society through trusted
products and services, under our corporate philosophy of “Creating better society through the power of technology.”
However, with the unprecedented pandemic brought on by COVID-19, we are already entering an era of uncertainty
in which the future is difficult to predict. In such a volatile and uncertain business environment, we have decided toestablish a new long-term vision and five-year plan to implement the management cycle in order to achieve theenhancement of corporate value.
We will endeavor to develop business operations with ESG as the core of our management, to continue to be asustainable company.

(2) Summary of Financial Position for the Fiscal Year under Review
In assets as of the end of the fiscal year under review, cash and deposits increased by 6,818 million yen from theend of the previous fiscal year. Notes and accounts receivable - trade, and contract assets increased by 366 million
yen, while the turnover period of accounts receivable was 115.0 days (compared with 118.6 days at the end of theprevious fiscal year). In addition, inventories increased by 1,960 million yen while the turnover period was 74.2 days
(compared with 76.2 days at the end of the previous fiscal year). Meanwhile, property, plant and equipment decreased
by 610 million yen compared with the end of the previous fiscal year. As a result, total assets as of March 31, 2022
amounted to 89,268 million yen, an increase of 8,886 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 2,734 million yen from the end of the previous fiscal year while their turnover period was 69.2 days
(compared with 74.0 days at the end of the previous fiscal year). In addition, short-term borrowings and long-term
3

borrowings in total increased by 1,054 million yen due to newly raising working capital, etc. The ratio of interestbearing liabilities (excluding lease liabilities) to net sales at the end of the current fiscal year was 24.8%, an increaseof 1.4 point from the end of the previous fiscal year. As a result, total liabilities increased by 7,031 million yen fromthe end of the previous fiscal year to 46,199 million yen.
In net assets, retained earnings increased by 1,491 million yen compared to the end of the previous fiscal year to38,393 million yen. Total net assets increased by 1,854 million yen compared to the end of the previous fiscal year
to 43,069 million yen. As a result, the equity ratio at the end of the fiscal year under review was 48.2%.

(3) Summary of Cash Flows for the Fiscal Year under Review
Changes in cash and cash equivalents (hereinafter referred to as “capital”) at the end of the fiscal year underreview are as follows.
Cash flows from operating activities resulted in a cash inflow of 7,870 million yen, cash flows from investing
activities resulted in a cash outflow of 1,300 million yen, and cash flows from financing activities resulted in a cash
inflow of 84 million yen. As a result, capital increased by 6,844 million yen (a decrease of 986 million yen as of theend of the previous fiscal year).
- Cash flows from operating activities
Cash flows from operating activities resulted in a cash inflow of 7,870 million yen (a cash inflow of 3,035
million yen as of the end of the previous fiscal year) due to securing profit before income taxes of 2,761 million
yen by recording sales primarily of marine-use internal combustion engines, recording of depreciation of 2,808
million yen, and an increase in trade payables of 2,527 million yen while recording a decrease in inventories of
1,959 million yen, a decrease in trade receivables of 167 million yen, and a decrease in income taxes paid of 797
million yen.
- Cash flows from investing activities
Cash flows from investing activities resulted in a cash outflow of 1,300 million yen (a cash outflow of 1,847
million yen as of the end of the previous fiscal year) due to purchase of property, plant and equipment of 1,378
million yen as a result of capital investment, etc.
- Cash flows from financing activities
Cash flows from financing activities resulted in a cash inflow of 84 million yen (a cash outflow of 2,310 million
yen as of the end of the previous fiscal year) due to proceeds from long-term borrowings of 4,300 million yen forthe purpose of raising working capital, etc. while recording repayments of long-term borrowings of 3,325 million
yen, repayments of finance lease liabilities of 455 million yen, and dividends paid of 476 million yen.

(4) Outlook for the Future
Concerning the outlook of the Group for the next fiscal year, an overall year-on-year increase is expected in net
sales.
Regarding sales of marine-use engines, in response to strong orders for large-scale auxiliary engines for container
ships, we plan to increase production at the Himeji Factory, a dedicated large-scale engine factory. Sales of dual fuelengines have also increased significantly, replacing sales from conventional diesel engines. Average sales price per
engine has risen and we expect a year-on-year increase in net sales for commercial-use engines. We also expect thatnet sales of engines to the Ministry of Defense will increase.
Sales and production of large-scale engines as a percentage of total classes of engine are expected to increase,and inventories at the end of March 2023 are expected to be higher than at the end of March 2022. Accordingly, we
will continue to shorten production lead time and radically control inventories.
We assume that maintenance-related sales will not recover to the levels seen prior to the COVID-19 pandemic
due to many unstable factors including the emergence of new COVID variant and lockdowns in China while there
are signs of recovery from the plunge caused by COVID-19, mainly in Southeast Asia, partly due to the relaxationof restrictions on movement.
4

Regarding sales of land-use engines, we expect sales to be on the same level as the previous fiscal year, primarily
for pumping stations in urban areas (for disaster relief).
The global trend toward decarbonization and responses to rapid digitalization has accelerated similar
developments in the vessel sector. In order to respond quickly to such changes in the business environment, we will
invest development resources in a focused manner toward the development of next-generation fuel engines anddigitalization.
Amid increasing factors of performance instability, such as COVID-19 pandemic, situation in Ukraine, current
weakening yen, soaring raw materials prices, we will speed up the strengthening of management structure and strive
to enhance profitability through measures such as the selection and focus of management resources and further
radical cost reductions while executing advanced investment in a timely manner.
For the six months ending September 30, 2022, the Group forecasts net sales of 29,000 million yen, operating
profit of 200 million yen, ordinary profit of 200 million yen, and profit attributable to owners of parent of 200 million
yen. For the fiscal year ending March 31, 2023, the Group forecasts net sales of 65,000 million yen, operating profitof 2,700 million yen, ordinary profit of 2,700 million yen, and profit attributable to owners of parent of 2,200 millionyen.

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

6

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

7

As of March 31, 2022

20,327
17,97027,146––

18,336

10,7251,639(11)50,651

12,6851,896(6)60,058

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

9,133
5,792
5,084
525
777
21,314
628

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

2,707
–
4,096
474
(10)
7,267
29,20989,268(Million yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Accrued expenses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
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
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

8

As of March 31, 2022

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

6,777
5,502
4,440
309
869
671
35
5,050
2,474
26,132

6,711
482

9,871
271

66

34

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

7,216
194
2,478
20,06646,1992,434
2,171
36,901(42)
41,4652,434
2,173
38,393(43)
42,957

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

295
(7)
97
(313)
72
39
43,06989,268

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2021
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
Share of profit of entities accounted for using equity
methodForeign exchange gains
Outsourcing service income
Reversal of allowance for doubtful accounts
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
National subsidies
Subsidy income
Other
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on sale of non-current assets
Loss on valuation of investment securities
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

9

For the fiscal year
ended March 31, 2022

56,74545,71811,02757,59944,31813,281

7,908
2,124
10,032
994

8,956
2,232
11,188
2,092

8
27

5
37

43

13

24
26
2
140
274

101
209
5
163
536

91
27
119
1,149

86
35
122
2,506

1
88
97
13
200

4
81
178
–
264

16
0
7
24
1,325
785
(173)
612
713
1
712

9
–
–
9
2,761
1,327
(525)
802
1,959
(8)
1,968

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2021
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
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

10

For the fiscal year
ended March 31, 2022

713

1,959

91
–
42
82

47
(8)
86
195

61

49

278
991

370
2,330

990

2,338

1

(8)

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2021
(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

2,191

36,5782,434

Treasury shares(28)

Total shareholders’equity41,175

Changes during period
Dividends of surplus

(477)

(477)

Profit attributable to ownersof parent

712

712

Purchase of treasury shares
Disposal of treasury shares(4)

Transfer of loss on disposal oftreasury shares
Change from merger ofconsolidated andunconsolidated subsidiaries
Net changes in items otherthan shareholders' equity

(62)

47

42

4

(4)

–

(19)

93

73

–

(19)

323

(14)

289

2,434

2,171

36,901(42)

41,465

Total changes during period
Balance at end of period(62)

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

Noncontrollinginterests

155

–

(141)

(591)

(576)

46

Total net
assets40,645

Changes during period
Dividends of surplus(477)

Profit attributable to ownersof parent

712

Purchase of treasury shares(62)

Disposal of treasury shares

42

Transfer of loss on disposalof treasury shares
Change from merger ofconsolidated andunconsolidated subsidiaries
Net changes in items otherthan shareholders' equity

－
73
91

–

104

82

278

1

279

Total changes during period

91

–

104

82

278

1

569

Balance at end of period

247

–

(36)

(509)

(298)

47

41,21411

For the fiscal year ended March 31, 2022
(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

2,171

36,901

2,434

Treasury shares(42)

Total shareholders’equity41,465

Changes during period
Dividends of surplus

(476)

(476)

Profit attributable to ownersof parent

1,968

1,968

Purchase of treasury shares
Disposal of treasury shares

1

(37)

(37)

36

38

Transfer of loss on disposalof treasury shares
Change from merger ofconsolidated andunconsolidated subsidiaries
Net changes in items otherthan shareholders' equity

–

1

1,491

(1)

1,492

2,434

2,173

38,393(43)

42,957

Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

Noncontrollinginterests

247

–

(36)

(509)

(298)

47

Total net
assets41,214

Changes during period
Dividends of surplus(476)

Profit attributable to ownersof parent

1,968

Purchase of treasury shares(37)

Disposal of treasury shares

38

Transfer of loss on disposalof treasury shares
Change from merger ofconsolidated andunconsolidated subsidiaries
Net changes in items otherthan shareholders' equity

–
–
47

(7)

134

195

370

(8)

362

Total changes during period

47

(7)

134

195

370

(8)

1,854

Balance at end of period

295

(7)

97

(313)

72

39

43,06912

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2021
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 (gain) on sale 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
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
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 sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Proceeds from collection of loans receivable
Proceeds from withdrawal of time deposits
Payments into time deposits
Net cash provided by (used in) investing activities

13

For the fiscal year
ended March 31, 2022

1,325
2,771
(2)
(48)

2,761
2,808
(50)
45

(45)

29

268

116

(9)

(32)

(36)
91
7
(0)
16
919
2,249
(3,989)

(43)
86
–
(4)
9
(167)
(1,959)
2,527

428

(467)

(3)
323
4,266
36
(91)
(1,176)
3,035

85
2,963
8,709
43
(84)
(797)
7,870

(1,785)
9
(123)
31
0
698
(678)
(1,847)(1,378)
15
(61)
–
0
921
(797)
(1,300)(Million yen)
For the fiscal year
ended March 31, 2021
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 liabilities
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents at end of period

14

For the fiscal year
ended March 31, 2022–
(1,235)
(62)
(477)
–
(535)
(2,310)4,300(3,325)
(37)
(476)
80
(455)
84

67

190

(1,054)
20,495

6,844
19,50968–

19,50926,354

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

There is no relevant information.
(Changes in accounting policy)(Application of Accounting Standard for Revenue Recognition, etc.)“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafter referred
to as the “Revenue Recognition Accounting Standard”) has been applied from the beginning of the fiscal year underreview, whereby revenue shall be recognized by the amount of money expected to be received in exchange for goods
or services at the point where control of the agreed goods or services is transferred to the customer.
Further, alternative treatments as stipulated in Paragraph 98 of the “Implementation Guidance on AccountingStandard for Revenue Recognition” have been applied to domestic sales of merchandise or products, for which revenue
will be recognized at the point of shipment if the period from shipping to the point where control of the merchandise or
products is transferred to the customer is a standard period.
The application of the Revenue Recognition Accounting Standard, etc. has been in accordance with the transitional
treatment stipulated in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard, whereby the
cumulative effects of retroactively applying the new accounting policy prior to the beginning of the fiscal year underreview has been added to, or subtracted from the retained earnings at the beginning of the fiscal year under review, with
the new accounting policy being applied from the balance at the beginning of the fiscal year. However, by applying themethod stipulated in Paragraph 86 of the Revenue Recognition Accounting Standard, the new accounting policy has notbeen retroactively applied to contracts for which almost all revenue amounts had been recognized in accordance withthe previous treatment prior to the beginning of the fiscal year under review. In addition, by applying the methods
stipulated in additional item (1) under Paragraph 86 of the Revenue Recognition Accounting Standard, accounting
treatment has been applied to contract changes made prior to the beginning of the fiscal year under review in accordancewith the contractual conditions after all the contract changes have been reflected, and the cumulative effects of this has
been added to, or subtracted from, the retained earnings at the beginning of the fiscal year under review.
The impact to profit and loss for the fiscal year under review and retained earnings at the beginning of the fiscal
year under review from applying the Revenue Recognition Accounting Standard, etc. is minor,
Due to the application of the Revenue Recognition Accounting Standard, etc., “Notes and accounts receivable trade” as presented under “Current assets” on the “Consolidated Balance Sheets” for the previous fiscal year has been
included in “Notes and accounts receivable - trade, and contract assets” from the fiscal year under review. In accordancewith the transitional treatment as stipulated in Paragraph 89-2 of the Revenue Recognition Accounting Standard,
reclassification of accounts under the new display method has not been made for the previous fiscal year.
(Application of accounting standards for calculating fair market values)

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

15

(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 tofinancial information and are based on the financial reporting for performance evaluation with regard to annual
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 to utilize thereal 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 andevaluation by categorizing production, sales, and after-sales service business activities for engines 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
The accounting method used for reportable business segments is a method that is in compliance with theaccounting principles and procedures adopted for the preparation of consolidated financial statements.
Reportable segment income figures are based on operating profit.
Assets and liabilities are not stated because they are not subject to review by the Board of Directors to determine
the allocation of management resources and evaluate achievement.

3. Information on net sales, profit (loss), assets, liabilities, and other by reportable segment
For the fiscal year ended March 31, 2021
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Other(Notes)*1

Total

Marine-use
engines

Land-useengines

44,5738,567

53,1403,605

56,745-56,745

-

-

-

-

-

-

-

Total

44,5738,567

53,1403,605

56,745-56,745

Segment income (loss)

3,259

(697)

2,561

557

3,119

(2,124)994

Other
Depreciation

1,941

385

2,326

339

2,665

106

2,771

Total

Net sales(1) Net sales to outside
customers(2) Inter-segment net
sales or transfers(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 Consolidated Statements of Income.
*4 Assets are not allocated to the business segments.

16

For the fiscal year ended March 31, 2022
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Other(Notes)*1

Total

Marine-use
engines

Land-useengines

43,685

10,19253,877

3,722

57,599-57,599

-

-

-

-

-

-

-

43,685

10,19253,877

3,722

57,599-57,599Segment income

2,316

1,589

3,906

418

4,324

(2,232)

2,092

Other
Depreciation

1,933

427

2,360

341

2,702

106

2,808

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.

17

(Related information)
For the fiscal year ended March 31, 2021
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
33,843Latin America
15,615

Other

1,382

Total
5,903

56,745(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, 2022
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
31,633Latin America
17,936

1,709

Other

Total
6,319

57,599(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.

18

(Per share information)

Category

For the fiscal year
ended March 31, 2021

Net assets per share
Basic earnings per share

For the fiscal year
ended March 31, 2022

1,296.22 yen

1,354.99 yen

22.43 yen

62.01 yen

(Note) The basis for the calculation of basic earnings per share is as follows.

Category

For the fiscal year
ended March 31, 2021

For the fiscal year
ended March 31, 2022

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

712

Amount not attributable to shareholders of common shares(Million yen)
Profit attributable to owners of parent relating to common
712
shares (Million yen)
Average number of shares of common shares outstanding
31,740,671 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.

19

1,968
1,968
31,738,730 shares4. Other(1) Status of Production, Orders Received, and Sales
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

1,071,501

43,685(2.0)

Land-use engines

77,106

10,192

19.0

-

3,096

4.0

56,973

1.5

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

46.9

1,822,845

35.3

92,1791.7-

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

1,661,208

Land-use engines

89,136

Other

Total

61,911[36,717]
11,012
[175]
3,016
[-]
75,940[36,892]

42.6

42,993[23,002]
5,557
[13]
598
[-]
49,149[23,016]73.6
17.3(11.8)
62.8(Notes)*1 Amounts are based on sales prices.
*2 Figures in brackets [ ] indicate export orders received and the balance of export orders outstanding, and are included in totals.
*3 The figures above do not include consumption taxes.

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

VolumeHorsepower

Amount%(Million yen)
Year-on-year change
%

58.4

(2.0)

4.7

19.0

-

3.3

45.1

1.5

Export ratio

Internal combustion engine
Marine-use engines

1,071,501

Land-use engines

77,106

Other

43,685[25,490]
10,192
[475]
3,722
[-]
57,599[25,966]

Total(Notes)*1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (69.1%), Europe (19.9%), Latin America (6.6%), North America (2.6%), Others (1.8%)*3 The “Other” segment includes precision parts-related (1,367 million yen), industrial machinery-related (1,728 million yen) and realestate leasing-related (626 million yen).
*4 The figures above do not include consumption taxes.

(2) Changes in Directors and Corporate Auditors (Scheduled on June 29, 2022)
1. Retiring Directors:
Shinichi Nanba (currently Director and Managing Executive Officer)
Tomohiro Miyoshi (currently Director and Managing Executive Officer)
Noriyoshi Matsushita (currently Director)(Reference)
New Management Team (Scheduled on June 29, 2022)(Directors)
ChairmanPresident and Representative
Director
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Outside Director
Outside Director
Outside Director

Shigeki Kinoshita
Yoshinobu Hotta
Takashi Mizushina
Toshiki Sanaga
Tamon Tsuda (currently Representative, Tsuda CPA Office)Kazuo Komatsu (currently Attorney-at-law, Kitahama Partners,
Foreign Law Joint Enterprise)
Hiroko Ameno (currently Professor, Faculty of Business and Commerce,
Kansai University)21

(Statutory Auditors)
Standing Statutory Auditor
Outside Statutory Auditor
Outside Statutory Auditor(Executive Officers)
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Atsumi Masada
Norihide Bessyo (currently Standing Statutory Auditor,
Daihatsu Motor Co., Ltd.)
Kunihiro Morimoto (currently General Manager, Sales CS Division,
Daihatsu Motor Co., Ltd.)

Yoichi Hayata
Hideki Asada
Shinichi Nanba
Tomohiro Miyoshi
Masaki Hama
Tetsuya Bando
Shuji Kawano
Shunji Minami
Norihiko Kashimura
Takahiko Masuda
Hideharu Nagasawa

22