Briefing on Results for the Fiscal
Year ending March 31, 2024

May 9,2024

Stock code: 6517
Stock exchange listing: Tokyo

ContentsⅠ. Overview of Results for FY2024/3

II. Outlook for FY2025/3

All Rights Reserved. Copyright Denyo Co.,Ltd. 1

Ⅰ. Overview of Results for FY2024/3

All Rights Reserved. Copyright Denyo Co.,Ltd. 2

Highlights of Results for FY2024/3 (Consolidated)
Key Point

Both consolidated net sales and profits increased fromthe previous year.
(million yen)

FY2023/3

Change(YoY)

FY2024/3

Rate of change(YoY)

Net sales64,311100%

73,140

100%

8,829

13.7%

Operating income

4,874

7.6%

7,089

9.7%

2,215

45.4%

Ordinary income

5,180

8.1%

7,378

10.1%

2,197

42.4%

Profit attributable toowners of parent

3,633

5.7%

5,095

7.0%

1,461

40.2%

Capitalinvestment

4,213

1,913

△ 2,300△ 54.6%

Depreciation

1,266

1,228

△ 38

△ 3.0%

175.64yen

246.83yen

71.19yen

40.5%

5.7%

7.3%

50.0yen

64.0

Net income per share

ROE
Cash dividends pershare

All Rights Reserved. Copyright Denyo Co.,Ltd. 3

Sales Trends by Product (Consolidated)

Overview

1. Sales of generators increased by 7,787 million yen (14.5%).
2. Sales of welders increased by 36 million yen (0.8%).
3. Sales of compressors decreased by 33 million yen (4.6%).
(million yen)

FY2023/3

Rate of change(YoY)

64,311

100%

73,140

100%

8,829

13.7%

Generators

53,70083.5%

61,487

84.1%

7,787

14.5%

Welders

4,401

6.8%

4,437

6.1%

360.8%

Compressors

727

1.1%

693

0.9%

△ 33

△ 4.6%

Others

5,482

8.5%

6,521

8.9%

1,038

18.9%

Net sales

By productChange(YoY)

FY2024/3

All Rights Reserved. Copyright Denyo Co.,Ltd. 4

Engine Generators (Consolidated)

Generators••Rate of change(YoY)

FY2023/3

FY2024/3

53,700million yen

61,487million yen

In Japan, shipment of the large mobile-type
generators mainly increased. Stand-by
generating sets for disaster prevention
equipment remain robust.
Overseas, shipment to America increased, andshipment to Asia remain robust.

%

14.5

70%
Domestic market share of*According to aengine generators (mobile-type) Company survey(5-year average)

Manufacturing engine-driven generatorswith capacity from 1kVA to 1100kVA

Soundless generator“Mālie”

Generator with operational
data recording function⚫Mobile-type generators
Power source on a construction site and for civilengineering workand disaster recovery/restoration, etc.
⚫Stand-by generating sets (stationary type)Back-up power source for disaster prevention equipment
and offices, etc.
⚫Power-supply vehicles, etc.

All Rights Reserved. Copyright Denyo Co.,Ltd. 5

Engine Welders (Consolidated)

Welders•

Rate of change(YoY)

FY2023/3

FY2024/3

4,401million yen

4,437million yen

Although parts shortages hampered productionof some products, TIG welder machines andlarge machines for overseas markets remainrobust.

0.8%

55%
Domestic market share ofengine welders*According to aCompany survey(5-year average)

CO2 welder

The Company developed the first engine-driven welder foroutdoor work in Japan.
Ranging from 135A for welding light-gauge steel to a 500A
engine-driven welder for heavy-gauge steel, a TIG welder and a
CO2 welder, etc.
⚫Welding of steel construction for buildings, condominiums andbridges.
⚫Welding of important structures such as petroleum storage tanks
and pipelines.
All Rights Reserved. Copyright Denyo Co.,Ltd. 6

Engine Compressors (Consolidated)
FY2023/3Compressors•727million yen

Rate of change(YoY)

FY2024/3

693million yen△ 4.6%Engine compressor for the domestic market
decreased slightly.

15%
Domestic market share of *According to aengine compressors
Company survey(5-year average)

Engine compressor

Motor compressor

Manufacturing compressors with air discharge
amounts from 1.7㎥/min to 45.3㎥/min.
⚫ Breaking-up of roads and ground
improvement work of roads⚫ Mortar spraying work for preventing
landslides of mountain roads.
⚫ For artificial snow machines on ski slopes,etc.

All Rights Reserved. Copyright Denyo Co.,Ltd. 7

Others (Consolidated)

Others

FY2023/3

FY2024/3

5,482million yen

6,521million yen•

Self-propelled lifters increased on the back ofconstruction demand.

•

Sales of parts associated with products also increased.

Rate of change(YoY)

18.9%

Sales of other products⚫Self-propelled lifters⚫Load testing equipment⚫Parts⚫Secondhand equipment and purchased
merchandise⚫Repair sales, etc.
Self-propelled lifters

Load testing equipment

All Rights Reserved. Copyright Denyo Co.,Ltd. 8

Sales Trends by Region (Consolidated)(million yen)

FY2023/3

Change(YoY)

FY2024/3

Rate of change(YoY)

64,311

100%

73,140

100%

8,829

13.7%

Domestic sales

34,24453.2%

38,389

52.5%

4,145

12.1%

Overseas sales

30,06646.8%

34,750

47.5%

4,683

15.6%

North/Central
America

21,617

33.6%

25,230

34.5%

3,613

16.7%

Asia

5,902

9.2%

6,642

9.1%

740

12.5%

Others

2,547

4.0%

2,877

3.9%

329

12.9%

By regionNet sales

FY2023/3

North/Central
AmericaJapanFY2024/3

North/Central
AmericaJapan010,00020,000Asia others

30,00040,00050,000Asia
60,000others

70,00080,000All Rights Reserved. Copyright Denyo Co.,Ltd. 9

Factor Analysis of Changes in Operating Income
Increase in
Operating Income

Although there was an impact from higher purchasing prices for
major parts, operating income also increased due to a significant
increase in sales.
(million yen)

FY2023/3
Operating income
Operating income margin (%)

FY2024/3

Change (YoY)

4,874

7,089

2,215

7.6%

9.7%

2.1percentage pointFY2023/3

FY2024/3

Change (YoY)

Gross profit margin

21.2%

22.2%

Ratio of SG&A to sales

13.6%

12.5% △ 1.1percentage point

7.6%

9.7%

Ratio of operating income to sales••

1.0percentage point

2.1percentage point

The gross profit margin increased due to the effect of partially reflecting cost increases in sales
prices and an increase in relatively profitable products.
The ratio of SG&A to sales decreased due to a significant increase in sales, although personnel
costs and fixed costs increased.
All Rights Reserved. Copyright Denyo Co.,Ltd. 10

Consolidated Balance Sheets

Overview

１． Current assets increased 6,722 million yen mainly due to increases incash and deposits, trade receivables, etc.
２． Non-current assets increased 4,074 million yen mainly due to revaluationof investment securities.
３． Current liabilities increased by 2,575 million yen mainly due to anincrease in trade payables, etc.
(million yen)

At the end of
FY2023/3

At the end of
FY2024/3

Current assets

61,517

68,2396,722

Non-current assets

28,22732,301

4,074

Total assets

89,744

100,540

10,796

Current liabilities

17,70020,275

2,575

3,385

4,421

1,036

Total liabilities

21,085

24,697

3,611

Total net assets

68,65875,843

7,184

Total liabilities and net assets

89,744

100,540

10,796Long-term liabilities

Change fromthe end ofFY2023/3

All Rights Reserved. Copyright Denyo Co.,Ltd. 11

Changes in Consolidated Cash Flows

Overview

1. Cash flow from operating activities was 4,176 million yen, mainly due tothe recording of the income before income taxes, etc.
2. Cash flow from investing activities was -1,835 million yen, due to theacquisition of tangible fixed assets.
3. Balance of cash and cash equivalents increased by 1,698 million yen
from the end of the previous fiscal year.
(million yen)

FY2023/3

FY2024/3

I Cash flow from operating activities

2,031

4,176

II Cash flow from investing activities△ 4,116△ 1,835

I + II Free cash flow

△ 2,085

2,341

III Cash flow from financing activities

937

△ 819

IV Foreign currency translation
adjustments on cash and cash equivalents

119177

V Net increase or decrease in cash andcash equivalents△ 1,027

1,698

VI Cash and cash equivalents, end ofperiod

22,331

24,029All Rights Reserved. Copyright Denyo Co.,Ltd. 12

Ⅱ．Outlook for FY2025/3

All Rights Reserved. Copyright Denyo Co.,Ltd. 13

Outlook for FY2025/3: Consolidated Income and Loss
Key points

1.
2.

Net sales are expected to be 74 billion yen.
Assumed exchange rate is 140 yen/dollar.
(million yen)
FY2024/3

FY2025/3 (forecast)

Change (YoY)

Rate of change(YoY)

73,140100%

74,000

100%

860

1.2%

Operating income

7,089

9.7%

6,700

9.1%△ 389

△ 5.5%

Ordinary income

7,378

10.1%

7,0009.5%△ 378△ 5.1%

Profit attributable toowners of parent

5,095

7.0%

4,700

6.4%

△ 395

△ 7.8%

Capital investment

1,913

7,050

5,137

268.5%

Depreciation

1,228

1,400

172

14.0%

246.83yen

227.62yen△ 19.21yen

7.3%

*6.5%

64.0yen70.0yen

Net sales

Net income per share

ROE
Cash dividends per share* Equity is calculated by using the amount of money at the end of FY2024/3.
All Rights Reserved. Copyright Denyo Co.,Ltd. 14

Outlook for Sales by Product (Consolidated)•Overview•In Japan, sales are expected to remain steady on the back ofsolid construction demand.
Overseas, demand in America are expected to decrease, partly
as a reaction to the rapid increase over the past two years.
(million yen)

FY2024/3

FY2025/3 (forecast)

Change (YoY)

Rate ofchange (YoY)

73,140100%

74,000

100%

860

1.1%

Generators

61,48784.1%

61,700

83.4%

213

0.3%

Welders

4,437

6.1%

4,900

6.6%

463

10.4%

Compressors

693

0.9%

700

0.9%

71.0%

Others

6,521

8.9%

6,700

9.1%

179

2.7%

By productConsolidated sales

All Rights Reserved. Copyright Denyo Co.,Ltd. 15

Outlook for Sales by Region (Consolidated)(million yen)

FY2025/3 (forecast)

FY2024/3

Change (YoY)

Rate of change(YoY)

73,140100%

74,000

100%

860

1.2%

Domestic sales

38,38952.5%

40,400

54.6%

2,011

5.2%

Overseas sales

34,75047.5%

33,60045.4%△ 1,150△ 3.3%

North/ Central
America

25,23034.5%

23,40031.6%△ 1,830△ 7.3%

Asia

6,642

9.1%

7,000

9.5%

358

5.4%

Others

2,877

3.9%

3,200

4.3%323

11.2%

By region

Consolidated sales

FY2024/3

Japan

FY2025/3(forecast)

Japan010,00020,000

North/Central
America

North/Central
America

30,00040,00050,00060,000Asia

OthersAsia

Others

70,00080,000All Rights Reserved. Copyright Denyo Co.,Ltd. 16

Details of the Operating Income Forecast
Decrease in
Operating Income

Operating income is expected to decrease due to anincrease in expenses.
(million yen)
FY2024/3

Operating income
Operating income margin

FY2025/3 (forecast)

Change (YoY)

7,089

6,700

△ 389

9.7%

9.1%

△ 0.6 percentage point

FY2024/3

FY2025/3 (forecast)

Change (YoY)

Gross profit margin

22.2%

22.0% △ 0.2 percentage point

Ratio of SG&A to sales

12.5%

13.0%

Ratio of operating income to sales

•
•

9.7%

0.5 percentage point

9.1% △ 0.6 percentage point

The gross profit margin is expected to decline due to increases in labor costs anddepreciation costs.
The ratio of SG&A to sales are expected to rise due to increases in personnel costs, domestic
logistics costs, etc..
All Rights Reserved. Copyright Denyo Co.,Ltd. 17

Changes in the Amount of Capital Investment(million yen)
End of March2022
Cost of equipment

Main uses

End of March2023

End of March2024

End of March 2025
(plan)

839

4,213

1,913

7,050

・Machinery of Fukui plant,etc.
290
・Nishihatsu
50
・U.S. Plant
20
・Vietnam Plant
20
・Others
460

・Machinery of Fukui plant,etc.
360
・Nishihatsu
2500
・U.S. Plant
20
・Vietnam Plant
70
・Others
1,260

・Machinery of Fukui plant,etc.
440
・Nishihatsu
190
・U.S. Plant
170
・Vietnam Plant
20・Others
1,090

・Machinery of Fukui plant,
etc.
760
・Nishihatsu
4,160
・U.S. Plant
100
・Vietnam Plant
200
・Others
1,830

million yen

Amount of capital investment

8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000

Completion of Nishihatsu’s new head
office plant is scheduled in FY2024.

0
End of
March
2022

End ofMarch2023

End ofMarch2024

End ofMarch
2025(plan)

All Rights Reserved. Copyright Denyo Co.,Ltd. 18

Profit Distribution Policy• We are aware that it is important to increase the profit returned to shareholders as well as striving to improveearning strength and financial strength.
• The year-end dividend for the fiscal year ending March 2024 will be increased by 11 yen to 40 yen per sharefrom the previous forecast of 29 yen.(64 yen per year).
• From the fiscal year ending March 31, 2025, we will change our policy to further clarify our stance of further
enhancing profit returns commensurate with business performance. We will continue our progressive dividend
policy and flexibly acquire treasury shares to allocate results at an approximate total payout ratio of 40%.
• Under this policy, Denyo plans to pay 70 yen per share (30 yen at the interim and 40 yen at the year-end),
taking into consideration the earnings forecast and the total return ratio.

Trends in annual dividend per share,
payout ratio and total payout ratio

yen90
60.0%

80
70

50
31.6%

30.8%

25.4%
22.9%

14.5%
20.4%

20
14.5%

14.8%

14.5%

15.6%

18

2224

28

35.6%

30.8%

20.4%

30

25.9%
28.5%

28.0%
23.7%

22.4%

Approximately40%

32.2%

30.4%

40
23.5%

Total payout ratio

44.9%

43.8%

60

25.9%

25.4%

1030

30

40

42

46

47

47

50

640FY2011

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026

dividend per sharepayout ratio

total payout ratio

All Rights Reserved. Copyright Denyo Co.,Ltd. 19

Notes on Our Outlook

This material contains assumptions and outlooks for thefuture and forecasts based on plans as May 9, 2024.
Actual results may differ materially from projected values
due to future economic changes and competition.

This material is prepared for the purpose of providing
information and is not meant to solicit investment insecurities issued by the Company.
Investors are responsible for making their own final
investment decision.

All Rights Reserved. Copyright Denyo Co.,Ltd. 20

Reference Materials

All Rights Reserved. Copyright Denyo Co.,Ltd. 21

Overview of the Company
The leading manufacturer of outdoor power sources such as engine generators and engine welders
History:

July 2,1948

Established as Japan Power Welding Machine Co., Ltd.

1959

Developed and launched Japan’s first high-speed engine-driven welders.

1961

Began to manufacture and sell engine-driven generators.

1966

Developed soundproof engine-driven generators.
Changed its corporate name to Denyo Co., Ltd.

1983

Listed on the Second Section of the Tokyo Stock Exchange.

2000

Listed on the First Section of the Tokyo Stock Exchange.

2022

Transited to Prime Market in Tokyo Stock Exchange.

Company size, etc. (FY2024/3 on a consolidated basis)(million yen)

Net sales

73,140Overseas sales

34,750Ordinary income

7,378

Profit attributable to owners of parent

5,095

Total assets

100,540

Net assets

75,843Market capitalization (as of March 31)

53,125

Number of employees

1,408persons
Head Office (Nihonbashi-Horidomecho,Tokyo)

All Rights Reserved. Copyright Denyo Co.,Ltd. 22

The Group Companies

100%100%( Nishihatsu Co., Ltd. )

100%

80%

100%100%100%

76%

51%

100%

*1. Other than the above, the New Japan Machinery Corporation is an equity-method affiliate (investment ratio 15.7%).
2. Underlined companies are manufacturers.

All Rights Reserved. Copyright Denyo Co.,Ltd. 23

Trends and Forecasts by Product Sales

Sales by product
Generators

Welders

Compressors

Others80,00070,00060,00050,000

5,719
1,059
5,115

6,365
1,012
5,072

5,482
727
4,401
5,845
755
4,386

6,521
693
4,437

6,700
700
4,900

61,48761,700

FY2024/3

FY2025/3(Forecast)

5,856
727
4,829

40,00030,00053,70050,43620,00043,66044,02043,754FY2021/3

FY2022/3

10,0000FY2019/3

FY2020/3

FY2023/3

All Rights Reserved. Copyright Denyo Co.,Ltd. 24

Changes in Sales by Region and Forecasts

Sales by region
Japan

North/Central America

Asia

Europe and others

80,00070,00050,000

2,252
5,527

2,423
3,948

2,886
4,596

18,43040,00010,897

14,0803,200

25,23023,40038,38940,400

FY2024/3

FY2025/3(forecast)

7,000

2,547
5,902

2,216
5,197

60,000

2,877
6,642

21,617
13,05230,00020,00033,69337,04337,737

34,632

34,244FY2020/3

FY2021/3

FY2022/3

FY2023/3

10,0000
FY2019/3

All Rights Reserved. Copyright Denyo Co.,Ltd. 25

Changes in Results for the Last 30 Years

Net sales,
100 milion yen

JapanOverseas

Ordinary income

800

Ordinary income,
100 million yen

80

700

70
Great East Japan
Earthquake

600

60500

400

Lehman shock
Y2K boom

50

40300

30200

20

100

1000
Fisicalyear

All Rights Reserved. Copyright Denyo Co.,Ltd. 26

2-8-5, Nihonbashi-horidomecho, Chuo-ku, Tokyo 1038566, Japan
Phone: +81-3-6861-1111, Facsimile: +81-3-6861-1181
https://www.denyo.co.jp/english/