Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Non-Consolidated Financial Results
for the Three Months Ended March 31, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:
DAIWA INDUSTRIES LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

6459
URL http://www.drk.co.jp
President and Representative Director

Atsushi Ozaki

Inquiries:
General Manager of Accounting Division
Scheduled date to file Quarterly Securities Report:

Kiichiro Sokooshi
May 15, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

06-6767-8171(Amounts less than one million yen are rounded down)
1. Non-consolidated financial results for the three months ended March 31, 2023 (from January 1, 2023 to March 31, 2023)(1) Non-consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales
Three months ended March 31, 2023
Three months ended March 31, 2022

Operating profit

Millions of yen
10,783
9,698% Millions of yen
11.2
1,683
0.9
1,314

Earnings per share

Ordinary profit% Millions of yen
28.1
1,653
9.5
1,289

% Millions of yen
28.2
1,115
7.2
679

%
64.2
(15.7)

Diluted earnings per share

Yen
22.59
13.31

Three months ended March 31, 2023
Three months ended March 31, 2022

ProfitYen––(2) Non-consolidated financial position
Total assets

Net assets

Millions of yen
87,31586,071

As of March 31, 2023As of December 31, 2022

Equity ratio

Millions of yen
60,55460,196%
69.4
69.9

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Year ended December 31, 2022

Yen–

Yen
15.00

Yen–

Yen
15.00

Yen
30.00

Year ending December 31, 2023

–
15.00

–

15.00

30.00

Year ending December 31, 2023 (Forecast)Total

3. Forecast of non-consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)
Percentages indicate year-on-year changes
Net sales
Millions of yen
Six months ending
June 30, 2023
Full year

Operating profit

Ordinary profit

ProfitEarnings per share% Millions of yen% Millions of yen% Millions of yen%

Yen

21,500

1.9

3,390

1.9

3,330

1.7

2,010

1.6

39.74

44,800

2.0

7,120

1.9

7,000

1.9

4,530

1.9

89.56

1

4. Notes(1) Application of special accounting methods for preparing quarterly non-consolidated financial statements: No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statementsChanges in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

51,717,215 shares As of December 31, 2022

51,717,215 shares

Number of treasury shares at the end of the period
As of March 31, 2023

2,352,747 shares As of December 31, 2022

2,352,591 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended March 31, 2023

49,364,559 shares Three months ended March 31, 2022

251,048,075 shares

Quarterly non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of December 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

53,867,822
4,402,267

54,589,946
4,935,959

Merchandise and finished goodsWork in process

1,519,989
444,206

1,789,254
405,292

Raw materials and supplies
Service Parts

830,721
197,258

905,162
206,657

Other
Allowance for doubtful accounts

893,799(901)

726,401(1,009)62,155,162

63,557,664

10,491,198

10,464,965

Intangible assets
Investments and other assets

127,352

118,736

Investment securities
Long-term time deposits

447,335
9,000,000

422,049
9,000,000

Other
Allowance for doubtful accounts

3,913,399(63,047)

3,814,245(62,617)

Total investments and other assets

13,297,687

13,173,677

23,916,23823,757,378

86,071,401

87,315,043

Total current assets
Non-current assets
Property, plant and equipment

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade

6,300,640

6,289,993

Income taxes payable
Contract liabilities–
17,008,688

501,525
16,769,778

Provisions
Other

367,538
1,785,304

866,743
1,925,613

Total current liabilities

25,462,172

26,353,653

400,440

395,205

12,04911,927

Non-current liabilities
Provisions
Other
Total non-current liabilities

412,489

407,13225,874,662

26,760,786

Share capital
Capital surplus

9,907,039
9,867,880

9,907,039
9,867,880

Retained earnings
Treasury shares

42,782,360(2,437,233)

43,157,217(2,437,433)

Total shareholders' equity

60,120,046

60,494,703

76,691

59,553

Total liabilities
Net assets
Shareholders' equity

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

376,691

59,55360,196,738

60,554,257

86,071,401

87,315,043

Non-consolidated statements of income (cumulative)(Thousands of yen)Three months ended

Three months ended

March 31, 2022

March 31, 2023

Net sales
Cost of sales

9,698,031
4,182,269

10,783,314
4,894,611

Gross profit

5,515,761

5,888,703

Selling, general and administrative expenses

4,201,089

4,204,997

Operating profit

1,314,671

1,683,705

Interest income
Dividend income

3,902
1,529

3,772
802

Compensation income
Other

12,21016,51012,893
16,461

Total non-operating income

34,15233,92944,11350,403

Other

15,478

14,164Total non-operating expenses

59,59164,567

1,289,233

1,653,067

0000

Profit before income taxes

1,289,233

1,653,066

Income taxes - current
Income taxes - deferred

191,942
417,932

437,426
100,313

Total income taxes

609,874

537,740

Profit679,358

1,115,326

Non-operating income

Non-operating expenses
Loss on scrap sales

Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses

4