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 Year Ended December 31, 2023
(Based on Japanese GAAP)
February 14, 2024
Company name:

DAIWA INDUSTRIES LTD.

Stock exchange listing: Tokyo
Stock code:
6459
Representative:
Inquiries:

URL

https://www.drk.co.jp

President and Representative Director
General Manager of Accounting Division

Atsushi Ozaki
Teranishi Takashi

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

March 28, 2024
March 29, 2024

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

March 29, 2024
No

Holding of financial results meeting:

NoTEL

06-6767-8171(Amounts less than one million yen are rounded down)
1. Non-consolidated financial results for the year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(1) Non-consolidated operating resultsPercentages indicate year-on-year changes
Net salesYear ended December 31, 2023
Year ended December 31, 2022

Millions of yen
45,96943,942

Operating profit% Millions of yen
4.6
8,137
(0.1)
6,985

Diluted earnings pershare
Yen
Yen
112.17–
87.90–

Earnings per share
Year ended December 31, 2023
Year ended December 31, 2022

Ordinary profit
%
16.5
11.5

Millions of yen
7,989
6,866

Profit/equity

Profit%16.3
12.1

Millions of yen
5,537
4,446%
24.5
23.1

Ordinary profit/total Operating profit/net
assetssales%%%
8.99.0
17.7
6.8
8.1
15.9

(2) Non-consolidated financial position
Total assets
As of December 31, 2023
As of December 31, 2022

Net assets

Equity ratio

Millions of yen
92,20386,071Millions of yen
64,27860,196

Cash flows fromoperating activities
Millions of yen
8,891
4,293

Cash flows frominvesting activities
Millions of yen(1,217)(1,141)

Net assets per share%
69.7
69.9

Yen
1,302.13
1,219.43(3) Non-consolidated cash flows

Year ended December 31, 2023
Year ended December 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(1,475)59,866(3,386)
53,667

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended December 31, 2022
Year ended December 31, 2023
Year ending December 31, 2024
(Forecast)

Dividend payout Ratio of dividends
Total cashratio
to net assets
dividends (Total) (Non-consolidated)(Non-consolidated)

TotalYen

YenYenYen

YenMillions of yen%%

––

15.00
15.00

––

15.00
15.0030.00
30.00

1,506
1,480

34.1
26.7

2.3
2.3

–

15.00

–

15.00

30.00

126.3

3. Forecast of non-consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Percentages indicate year-on-year changes
Net sales
Millions of yen
Six months ending
June 30, 2024
Full year

Operating profit

Ordinary profit

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

23,100

1.9

4,130

1.8

4,060

1.8

2,740

1.6

55.51

46,800

1.8

8,300

2.0

8,1401.95,640

1.9

114.25

4. Notes(1) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 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 December 31, 2023

2,353,107 shares As of December 31, 2022

2,352,591 shares

49,364,345 shares Year ended December 31, 2022

50,582,232 shares

Average number of shares during the period
Year ended December 31, 2023

2

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

As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

53,867,822
1,339,050

60,066,688
1,135,903

Accounts receivable - trade
Merchandise and finished goods

3,063,216
1,519,989

2,769,410
2,545,567

Work in process
Raw materials and supplies

444,206
830,721405,243
983,330

Service parts
Prepaid expenses

197,258
242,324

206,212247,105

Other
Allowance for doubtful accounts

651,474(901)

177,626(802)

62,155,162

68,536,287

10,534,992(7,284,278)

10,609,485(7,458,467)

3,250,713

3,151,018

822,129(711,031)

823,309(728,755)

111,098

94,554

6,516,422(5,686,865)

6,812,207(5,907,422)

829,557

904,785

73,225(69,369)

74,895(71,495)

3,856

3,400

3,570,180(3,416,405)

3,960,946(3,546,623)

153,775

414,323Land
Construction in progress

5,926,210
215,986

5,982,007
643,600

Total property, plant and equipment

10,491,198

11,193,691

118,625

152,214

8,726

8,726

127,352

160,941

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, netVehicles
Accumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Intangible assets
SoftwareTelephone subscription right
Total intangible assets3(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

Investments and other assets
Investment securities
Distressed receivables

447,335
61,250483,143
58,911Long-term prepaid expenses
Deferred tax assets

63,423
3,528,259

67,492
2,494,301

Leasehold and guarantee deposits
Long-term time deposits

255,945
9,000,000

265,580
9,000,000

Other
Allowance for doubtful accounts

4,521(63,047)

4,511(61,308)

Total investments and other assets

13,297,687

12,312,632

23,916,238

23,667,264

86,071,401

92,203,552

3,281,914

3,204,027

Accounts payable - trade
Accounts payable - other

3,018,725
1,052,686

2,893,127
1,374,660

Accrued expenses
Income taxes payable

26,264–29,272
1,340,598

658,469
17,008,688

540,636
17,077,448

Provision for bonuses
Provision for bonuses for directors (and other officers)

174,166
29,950

192,42230,450

Provision for product warranties
Other

163,42247,883

199,926
625,019

25,462,172

27,507,589

6,416

4,833

394,023

404,431

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

Deposits received
Contract liabilities

Total current liabilities
Non-current liabilities
Provision for retirement benefits
Provision for retirement benefits for directors (and otherofficers)
Other

12,0498,062

Total non-current liabilities

412,489

417,326

25,874,662

27,924,916

Total liabilities

4

(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

Net assets
Shareholders' equity
Share capital

9,907,039

9,907,039

Capital surplus
Legal capital surplus

9,867,880

9,867,880

Total capital surplus

9,867,880

9,867,880

Retained earnings
Legal retained earnings

578,170

578,170

Other retained earnings
General reserve

14,170,382

14,170,382

28,033,807

32,089,911

Retained earnings brought forward

42,782,360

46,838,464

Treasury shares

Total retained earnings(2,437,233)(2,437,929)

Total shareholders' equity

60,120,046

64,175,454

76,691

103,181

76,691

103,181

60,196,738

64,278,636

86,071,401

92,203,552

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

5Non-consolidated statements of income(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2022

December 31, 2023

Net sales
Net sales of finished goods

22,697,400

24,816,591

Net sales of goods
Sales of service parts

11,706,487
9,355,756

11,318,492
9,675,062

Other sales

183,212

159,097

Total net sales

43,942,856

45,969,244

Cost of sales
Cost of finished goods soldBeginning finished goods inventory

1,059,293

1,428,291

Cost of products manufactured

10,502,154

11,390,209

Total

11,561,448

12,818,501

2,517

4,433

Transfer to other accountEnding finished goods inventory

1,428,291

2,498,925

Cost of finished goods sold10,130,639

10,315,142

Beginning merchandise inventory
Cost of purchased goods

35,7506,751,031

91,697
6,626,536

Total

6,786,781

6,718,234

Cost of goods soldEnding merchandise inventory

91,697

46,642

Cost of goods sold6,695,083

6,671,592

Cost of service parts sold2,611,780

2,767,029

54,584

81,375

19,492,087

19,835,139

24,450,768

26,134,105

119,357

118,492

Transportation and storage costs
Product warranty expenses

2,107,009
183,885

2,134,086
273,604

Provision for product warranties
Remuneration, salaries and allowances

163,422
8,462,424

199,926
8,710,666

Provision for bonuses
Provision for bonuses for directors (and other officers)

134,502
29,950147,879
30,450

Provision for retirement benefits for directors (and otherofficers)

25,87021,7771,450,941
953,071

1,490,614
1,007,497

Supplies expenses
Rent expenses

213,375
907,230

208,248
942,757

Vehicle expenses
Depreciation

373,463
245,814346,354
243,018

Other

2,095,030

2,121,097

Total selling, general and administrative expenses

17,465,348

17,996,470

6,985,420

8,137,635

Other costs
Total cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses

Welfare expenses
Travel and communication expensesOperating profit

6(Thousands of yen)

Non-operating income
Interest income

Fiscal year ended

Fiscal year ended

December 31, 2022

December 31, 2023

13,98015,040Interest on securities
Dividend income

189
13,875–
14,249Compensation income
Gain on sale of scraps

47,72528,75942,64926,226

Rental income from real estate
Miscellaneous income

17,96827,67018,01832,056

Total non-operating income

150,170

148,240

Non-operating expenses
Compensation expenses

28,80032,636

Loss on scrap sales
Miscellaneous losses

218,491
21,409244,084
19,652

Total non-operating expenses

268,701

296,372

6,866,889

7,989,503

Gain on sale of non-current assets

558–

Total extraordinary income

558–

304

84

Ordinary profit
Extraordinary income

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

304

84

6,867,144

7,989,419

Income taxes - current

488,196

1,430,103

Income taxes - deferred

1,932,798

1,022,278

Total income taxes

2,420,995

2,452,381

Profit

4,446,148

5,537,038

Profit before income taxes

7Non-consolidated statements of changes in equity
Fiscal year ended December 31, 2022
(Thousands of yen)
Shareholders' equity
CapitalsurplusRetained earnings
Other retained earnings

Share capital

Balance at beginning ofperiod

9,907,039

Legal capital Legal retained
surplusearnings

9,867,880

578,170

Generalreserve

Retainedearnings
brought
forward14,170,382

35,800,793

Cumulative effects ofchanges in accounting
policies
Restated balance

Treasuryshares(578,678)(10,681,693)
9,907,039

9,867,880

578,170

14,170,382

25,119,099

Total
shareholders'equity69,745,587(10,681,693)(578,678)

59,063,893

Changes during period
Dividends of surplus(1,531,440)(1,531,440)

Profit

4,446,148

4,446,148

Purchase of treasury shares(1,858,554)(1,858,554)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––––

2,914,707(1,858,554)

1,056,153

9,907,039

9,867,880

578,170

14,170,382

28,033,807(2,437,233)

60,120,046

Valuation andtranslation
adjustments

Balance at beginning ofperiod

Valuationdifference on
available-forsale securities

Total net assets

44,00969,789,596

Cumulative effects ofchanges in accounting
policies
Restated balance(10,681,693)
44,00959,107,903

Changes during period
Dividends of surplus(1,531,440)

Profit

4,446,148

Purchase of treasury shares(1,858,554)

Net changes in items otherthan shareholders' equity

32,682

Total changes during period

32,682

1,088,835

Balance at end of period

76,69160,196,738

32,6828Fiscal year ended December 31, 2023
(Thousands of yen)
Shareholders' equity
CapitalsurplusRetained earnings
Other retained earnings

Share capital

Balance at beginning ofperiod

9,907,039

Legal capital Legal retained
surplusearnings

9,867,880

578,170

Generalreserve

Retainedearnings
brought
forward14,170,382

28,033,807

Cumulative effects ofchanges in accounting
policies
Restated balance

TreasurysharesTotalshareholders'equity(2,437,233)

60,120,046–
9,907,039

9,867,880

578,170

14,170,382

28,033,807–(2,437,233)

60,120,046

Changes during period
Dividends of surplus(1,480,934)(1,480,934)

Profit

5,537,038

5,537,038

Purchase of treasury shares

(696)

(696)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

9,907,039

9,867,880

578,170

Valuation andtranslation
adjustments

Balance at beginning ofperiod

Valuationdifference on
available-forsale securities

Total net assets

76,69160,196,738

Cumulative effects ofchanges in accounting
policies
Restated balance–
76,69160,196,738

Changes during period
Dividends of surplus(1,480,934)

Profit

5,537,038

Purchase of treasury shares(696)

Net changes in items otherthan shareholders' equity

26,48926,489Total changes during period

26,4894,081,897

Balance at end of period

103,181

64,278,636

9

14,170,382

4,056,103(696)

4,055,407

32,089,911(2,437,929)

64,175,454

Non-consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

December 31, 2022

December 31, 2023

6,867,144

7,989,419

690,555(1,450)692,159(1,838)

4,472

18,255(800)

500(45,447)

36,504(7,000)(1,583)(984,333)

10,407(28,045)(29,289)

(558)
304

–
84

Decrease (increase) in trade receivables
Decrease (increase) in inventories

870,329(692,388)

496,702(1,148,178)

Increase (decrease) in trade payables
Other, net

480,348(782,914)(203,485)
782,019

Subtotal

6,370,214

8,641,675

Interest and dividends received
Income taxes paid

29,164(2,105,975)

29,299(246,396)

Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income
Loss (gain) on sale of property, plant and equipment
Loss on retirement of property, plant and equipment

Income taxes refund–

467,229

4,293,403

8,891,807(1,700,000)
1,200,000(200,000)
200,000

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(559,132)559(1,167,887)–

Purchase of intangible assets
Purchase of investment securities(41,642)(121,298)(15,733)–

Proceeds from sale and redemption of securities
Proceeds from sale and redemption of investment securities

100,000
2,872

–
2,361

Other, net(22,892)(35,896)(1,141,534)(1,217,156)

Purchase of treasury shares
Dividends paid

(1,858,554)(1,528,142)(696)(1,475,219)

Net cash provided by (used in) financing activities(3,386,697)(1,475,915)

64130

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

Net cash provided by (used in) investing activities
Cash flows from financing activities

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(234,763)

6,198,866

Cash and cash equivalents at beginning of period

53,902,585

53,667,822

Cash and cash equivalents at end of period

53,667,822

59,866,688

10