Consolidated Financial Results
for the Three Months Ended June 30, 2019
[Japanese GAAP]
July 26, 2019
Company name: Daihatsu Diesel Mfg. Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 6023
URL: http://www.dhtd.co.jp
Representative: Shigeki Kinoshita, President
Contact: Osamu Goda, Vice president
Phone: +81-6-6454-2331
Scheduled date of filing quarterly securities report: August 9, 2019
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, 2019 (April 1, 2019 to June 30, 2019)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2019
11,802
(6.4)
(56)
(26)
(36)
June 30, 201812,616 (17.8)
215(58.2)
273(52.7)
171(56.8)(Note) Comprehensive income: Three months ended June 30, 2019: (162) million yen [(302.5)%]
Three months ended June 30, 2018: 80 million yen [(82.3)%]
Basic earnings per share

Three months ended
June 30, 2019
June 30, 2018
(2) Consolidated Financial Position
Total assets

Diluted earnings per share
YenYen(1.15)
5.40-Net assets

Million yen

Equity ratio

Million yen

As of June 30, 201982,779As of March 31, 201982,512(Reference) Equity: As of June 30, 2019: 38,504 million yen
As of March 31, 2019: 39,219 million yen

38,54539,263

%

46.5
47.5

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen
Yen
Yen
Fiscal year ended
March 31, 2019
0.00
Fiscal year ending
March 31, 2020
Fiscal year ending
March 31, 2020
0.00
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None

1Year-end

Total
Yen

Yen

15.00

15.00

15.00

15.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 toMarch 31, 2020)(% indicates changes from the previous corresponding period.)
Net sales
Million yen

Operating profit%

Million yen

Ordinary profit% Million yen%

Profit attributableto owners of parent
Million yen
02,100First half
26,000(2.7)
200(68.0)200(73.4)
Full year
62,000
8.3
3,000
14.2
3,000
16.4
(Note) Revision to the financial results forecast announced most recently: None

Basic earnings
per share%(100.0)
15.5

Yen
0.00
65.93

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resultingin changes in scope of consolidation): No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2019: 31,850,000 shares
March 31, 2019: 31,850,000 shares2) Total number of treasury shares at the end of the period:
June 30, 2019: 136,235 shares
March 31, 2019: 16,235 shares
3) Average number of shares during the period:
Three months ended June 30, 2019: 31,785,264 shares
Three months ended June 30, 2018: 31,833,765 shares* These quarterly financial results are outside the scope of quarterly review procedures conducted by a certified
public accountant or audit corporation.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecasts and other forward-looking statements herein are based on information 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.

2

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-lookingInformation ....................................................................................................................................... 3
2. Quarterly Consolidated Financial Statements and Primary Notes................................................... 4(1) Quarterly Consolidated Balance Sheets ......................................................................................... 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income............................... 6(3) Notes to the Quarterly Consolidated Financial Statements ......................................................... 8(Notes on going concern assumption)................................................................................................ 8(Notes in the case of significant changes in shareholders’ equity) ................................................. 8(Segment information, etc.) ............................................................................................................... 8
3. Supplementary Information ............................................................................................................... 10(1) Status of Production, Orders Received, and Sales ....................................................................... 101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, 2019 to June 30, 2019), the Japanese economy
remained on a moderate recovery trend including steady capital investments and a rebound in consumer
spending against a backdrop of improvements in the corporate earnings and the employment environment.
However, the future outlook remained uncertain due to factors such as slowdown in the Chinese economy
affected by the prolonged trade frictions between the United States and China and the impact of the issue of theUK’s withdrawal from the EU.
Under such a corporate environment, consolidated net sales decreased by 6.4% year-on-year to 11, 802
million yen. In terms of profit, the Company recorded operating loss of 56 million yen (operating profit of 215
million yen in the previous corresponding period), ordinary loss of 26 million yen (ordinary profit of 273
million yen in the previous corresponding period) and loss attributable to owners of parent of 36 million yen(profit attributable to owners of parent of 171 million yen in the previous corresponding period).
Performance by business segment of the Company and the consolidated Group are as follows.
<Internal combustion engines>
1. Marine-use
Due partly to worsening profitability in addition to a drop in sales of engines, particularly those for overseas
use, net sales decreased by 4.0% year-on-year to 10,313 million yen, and segment income decreased by
9.1% year-on-year to 758 million yen.
2. Land-use
Net sales decreased by 32.0% year-on-year to 724 million yen and segment loss amounted to 301 million
yen (segment loss of 69 million yen in the previous corresponding period) due mainly to a decrease inmaintenance-related sales in addition to a decline in items sold.
Consequently, net sales for the segment decreased by 6.5% year-on-year to 11,037 million yen, and segment
income decreased by 40.3% year-on-year to 456 million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, net sales increased but due to the deterioration of profit margins,segment income decreased.
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 and segment income increased.
4. Precision parts-related
In precision parts-related, net sales decreased and segment loss expanded.
Consequently, net sales for the segment decreased by 5.3% year-on-year to 764 million yen, and segment
income decreased by 25.6% year-on-year to 42 million yen.

(2) Explanation of Financial Position
In assets as of the end of the first quarter under review, cash and deposits increased by 1,871 million yenfrom the end of the previous fiscal year. Also, inventories increased by 2,523 million yen. Meanwhile, notes
and accounts receivable - trade decreased by 3,343 million yen compared with the end of the previous fiscal
year due to a progress in collection of trade receivables at the end of the previous fiscal year. As a result, totalassets as of June 30, 2019 amounted to 82,779 million yen, an increase of 266 million yen compared with the2end of the previous fiscal year.
In liabilities, notes and accounts payable - trade and electronically recorded obligations - operating in total
decreased by 44 million yen from the end of the previous fiscal year. Meanwhile, due to the newly procured
working capital, etc., short-term borrowings and long-term borrowings in total increased by 888 million yen.
As a result, total liabilities increased by 983 million yen from the end of the previous fiscal year to 44,233
million yen.
In net assets, retained earnings decreased by 514 million yen due mainly to payment of cash dividends. As aresult, total net assets decreased by 717 million yen from the end of the previous fiscal year to 38,545 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, 2020, no revisions havebeen made to the forecast announced on April 25, 2019.
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 inthe future.

32. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2019Assets
Current assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

As of June 30, 2019

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

22,777
13,755
12,7931,624(11)50,94010,883
6,899
5,088
113
836
23,821
1,442

10,727
6,690
5,088
166
811
23,483
1,414

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

2,736
1
3,637
619
(53)
6,941
31,83982,779(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
Provision for bonuses
Provision for bonuses for directors (and other officers)
Accrued expenses
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

5

As of June 30, 2019

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

7,374
5,207
4,423
564
99
253
12
2,530
3,261
23,728

7,217
1,077

9,876
1,041

521

70

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

6,677
208
2,630
20,504
44,2332,4342,191
35,060(10)
39,6752,434
2,191
34,546(87)
39,084180
7(643)(455)
43
39,26382,512168(104)
(643)
(579)
41
38,54582,779(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, 2018
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 (loss)
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
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on abandonment of non-current assets
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent

6

For the three months
ended June 30, 201912,616
9,690
2,925

11,802
9,437
2,364

2,103
606
2,710
215

1,865
556
2,421(56)

0
21

1
33

–

4

36
24
1
1095

–
19
1
51
111

24–
13
37
273

26
13
40
81(26)

0–
00
15
15–
4
4
9
264
77
15
93
170
(1)
171

2
3–
5(16)
65(43)
22(38)(1)(36)

Quarterly Consolidated Statements of Comprehensive Income
For the three months ended June 30(Million yen)
For the three months
ended June 30, 2018
Profit (loss)
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, 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 ofparent
Comprehensive income attributable to non-controllinginterests

7

For the three months
ended June 30, 2019
170

(38)

(21)
(1)
4(72)

(11)
–(23)
(0)

–(87)

(89)

(124)

80

(162)

81

(160)

(1)

(1)

(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, 2019 (from April 1, 2019 to June 30, 2019)
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, 2018 (from April 1, 2018 to June 30, 2018)
Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Adjustment(Notes) *2

Total(Million yen)Amountrecorded in
Quarterly
Consolidated
Statements ofIncome(Notes)*3

Net sales
Net sales to outside
customers

10,742

1,065

11,808807

12,616-

12,616

Inter-segment netsales or transfers-------

Total

10,742

1,065

11,808807

12,616-

12,616

Segment income (loss)

834(69)76457822(606)215(Notes)*1 The “Other” category is a business segment that is not included in reportable segments, and includes the industrialmachinery-related business, the real estate leasing-related business, the electricity sales-related business and theprecision parts-related business.
*2 The adjustment for segment income (loss) represents corporate expenses, largely consisting of selling, general andadministrative expenses not attributable to the reportable segments.
*3 Segment income (loss) is adjusted with operating profit on the Quarterly Consolidated Statements of Income.

8For the three months ended June 30, 2019 (from April 1, 2019 to June 30, 2019)
Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Adjustment(Notes) *2

Total(Million yen)Amountrecorded in
Quarterly
Consolidated
Statements ofIncome(Notes)*3

Net sales
Net sales to outside
customers

10,313724

11,037764

11,802-

11,802

Inter-segment net
sales or transfers-------

Total

10,313724

11,037764

11,802-

11,802

Segment income (loss)

758(301)456

42499(556)(56)(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 loss on the Quarterly Consolidated Statements of Income.

93. Supplementary Information(1) Status of Production, Orders Received, and Sales
For the three months ended June 30, 2019 (from April 1, 2019 to June 30, 2019)1) Production
Production by segment for the three months ended June 30, 2019 is as follows:(Million yen)Segment

VolumeAmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines
Land-use engines

249,462

10,313(4.0)

256724(32.0)

-602

(6.5)

11,640

(6.5)

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 three months ended June 30, 2019 are as follows:(Million yen)Orders receivedSegment

VolumeAmountHorsepower

Order backlogs
Year-on-yearchange%Horsepower(3.8)

1,193,920

34.5

187,826

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

271,614Land-use engines

71,642OtherTotal(Notes)10,892[6,051]
3,720
[791]
698
[-]
15,311[6,843]

4.1

28,997[8,957]
8,250
[948]
576
[-]
37,824[9,906]

8.4
17.4
7.8
10.2

*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.

103) Sales results
Sales by segment for the three months ended June 30, 2019 are as follows:Segment

VolumeHorsepower

AmountExport ratio%(Million yen)
Year-on-year change%

Internal combustion engine
Marine-use engines

249,462

10,31358.8(4.0)[6,067]Land-use engines
256
724
18.2
(32.0)[131]
Other764(5.3)[-]
11,802
Total52.5(6.4)[6,199](Notes) *1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (67.6%), Europe (20.7%), Latin America (6.5%), North America (4.5%), Others (0.7%)*3 The “Other” segment includes precision parts-related (326 million yen), industrial machinery-related (276 millionyen) and real estate leasing-related (162 million yen).
*4 The figures above do not include consumption taxes.

11