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 Six Months Ended June 30, 2024
(Based on Japanese GAAP)
August 8, 2024
Company name:
DAIWA INDUSTRIES LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

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

Atsushi Ozaki

Inquiries:
General Manager of Accounting Division
Scheduled date to file Semi-annual Securities Report:

Teranishi Takashi
August 9, 2024

TEL

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

September 3, 2024
No

Holding of financial results meeting:No

06-6767-8171(Amounts less than one million yen are rounded down)
1. Non-consolidated financial results for the six months ended June 30, 2024 (from January 1, 2024 to June 30, 2024)(1) Non-consolidated operating results (cumulative)

Percentages indicate year-on-year changesNet sales
Six months ended June 30, 2024
Six months ended June 30, 2023

Operating profit

Millions of yen
22,807
22,661% Millions of yen
0.6
3,903
7.4
4,057

Earnings per share% Millions of yen
(3.8)
3,841
22.0
3,987

Profit% Millions of yen
(3.7)
2,602
21.8
2,695%(3.5)
36.2

Diluted earnings per share

Yen
52.72
54.61

Six months ended June 30, 2024
Six months ended June 30, 2023

Ordinary profit

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

Net assets

Millions of yen
94,365
92,203As of June 30, 2024
As of December 31, 2023

Equity ratio

Millions of yen
66,20764,278

%
70.2
69.7

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

2nd quarter-end

3rd quarter-end

Fiscal year-end

Year ended December 31, 2023

Yen–

Yen
15.00

Yen–

Yen
15.00

Yen
30.00

Year ending December 31, 2024

–

15.00
–

15.00

30.00

Year ending December 31, 2024 (Forecast)Total

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
Full year

Millions of yen
46,800Operating profit% Millions of yen
1.88,300

Ordinary profit% Millions of yen
2.08,140

1Profit% Millions of yen
1.95,640

Earnings per share%
1.9Yen114.25

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

NoNo

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 June 30, 2024

51,717,215 shares As of December 31, 2023

51,717,215 shares

Number of treasury shares at the end of the period
As of June 30, 2024

2,353,265 shares As of December 31, 2023

2,353,107 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2024

49,364,005 shares Six months ended June 30, 2023

249,364,478 shares

Interim non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of December 31, 2023

As of June 30, 2024

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

60,066,688
3,905,314

59,725,372
4,939,747

Merchandise and finished goods
Work in process

2,545,567
405,2432,801,450
523,169

Raw materials and supplies
Service parts

983,330
206,2121,064,837
209,581

Other
Allowance for doubtful accounts

424,732(802)

404,656(1,010)68,536,287

69,667,803

11,193,691

12,481,015

Intangible assets
Investments and other assets

160,941

264,863

Investment securities
Long-term time deposits

483,143
9,000,000

579,618
9,000,000

Other
Allowance for doubtful accounts

2,890,797(61,308)

2,431,868(60,155)

Total investments and other assets

12,312,632

11,951,331

23,667,264

24,697,210

92,203,552

94,365,013

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

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

6,097,155

6,322,907

Income taxes payable
Contract liabilities

1,340,598
17,077,448

908,550
17,062,336

Provisions
Other422,798
2,569,589

426,671
3,015,265

Total current liabilities

27,507,589

27,735,731

Non-current liabilities
Provisions
Other
Total non-current liabilities

409,264–

8,062

421,330

417,326

421,330

27,924,916

28,157,061

Share capital
Capital surplus

9,907,039
9,867,880

9,907,039
9,867,880

Retained earnings
Treasury shares

46,838,464(2,437,929)

48,700,236(2,438,159)

Total shareholders' equity

64,175,454

66,036,997

103,181

170,954

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

3

103,181

170,954

64,278,636

66,207,951

92,203,552

94,365,013

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

Six months ended

June 30, 2023

June 30, 2024

Net sales
Cost of sales

22,661,348
9,879,456

22,807,745
9,656,090

Gross profit

12,781,891

13,151,654

Selling, general and administrative expenses

8,724,185

9,248,047

Operating profit

4,057,706

3,903,607

Interest income
Dividend income

7,457
8,031

7,508
9,857

Compensation income
Other

21,74937,65029,97535,043

Total non-operating income

74,887

82,386112,181

114,880

Non-operating income

Non-operating expenses
Loss on scrap sales
Other

32,71429,375

Total non-operating expenses

144,895

144,255

Ordinary profit

3,987,698

3,841,737

Extraordinary income
Gain on sale of non-current assets–

46,730Total extraordinary income–

46,730Extraordinary losses
Loss on sale of non-current assets–

44,886

Loss on retirement of non-current assets

0407

Total extraordinary losses

045,294

3,987,698

3,843,173

807,543784,906

Profit before income taxes
Income taxes - current
Income taxes - deferred

484,442456,033

Total income taxes

1,291,985

1,240,939

Profit2,695,712

2,602,2334

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

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 (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

Six months ended

Six months ended

June 30, 2023

June 30, 2024

3,987,698

3,843,173

297,004(693)

392,222
(944)

4,811

12,478(4,950)(5,450)22,181(3,155)(2,833)(4,833)(437)(404,431)(15,488)(17,366)

Loss (gain) on sale of property, plant and equipment
Loss on retirement of non-current assets–0(1,843)
407

Decrease (increase) in receivables and contract assets
Decrease (increase) in inventories(1,000,118)(798,760)(1,034,432)(458,684)

Increase (decrease) in trade payables
Increase (decrease) in accrued expenses

370,762
1,201,583

225,751
1,147,131

Other, net

57,605(109,365)

Subtotal

4,118,366

3,580,659

Interest and dividends received

15,507

17,371

Income taxes paid
Income taxes refund(2,374)467,229(1,188,791)–

4,598,728

2,409,239(200,000)(200,000)

200,000(268,662)

200,000(1,978,381)

–
(594)

145,379(136,924)

Proceeds from sale and redemption of investment securities
Other, net

1,180(17,556)

1,180(44,196)

Net cash provided by (used in) investing activities(285,631)(2,012,942)

(399)

(229)

Dividends paid

(737,790)(737,574)

Net cash provided by (used in) financing activities(738,189)(737,804)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets

Cash flows from financing activities
Purchase of treasury shares

Effect of exchange rate change on cash and cash equivalents

(155)

190

Net increase (decrease) in cash and cash equivalents

3,574,751(341,316)

Cash and cash equivalents at beginning of period

53,667,822

59,866,688

Cash and cash equivalents at end of period

57,242,573

59,525,372

5