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, 2023
(Based on Japanese GAAP)
August 9, 2023
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 Quarterly Securities Report:

Kiichiro Sokooshi
August 10, 2023

TEL

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

September 4, 2023
No

Holding of quarterly 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, 2023 (from January 1, 2023 to June 30, 2023)(1) Non-consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales
Six months ended June 30, 2023
Six months ended June 30, 2022

Millions of yen
22,661
21,094

Operating profit% Millions of yen
7.4
4,057
0.4
3,326

Earnings per share

Ordinary profit% Millions of yen
22.0
3,987
4.9
3,274

% Millions of yen
21.8
2,695
4.9
1,979

%
36.2
(5.8)

Diluted earnings per share

Yen
54.61
38.78

Six months ended June 30, 2023
Six months ended June 30, 2022

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

Net assets

Millions of yen
90,44186,071

As of June 30, 2023
As of December 31, 2022

Equity ratio

Millions of yen
62,14660,196

%
68.7
69.9

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
15.00
15.00

Yen–

Yen
15.00

Yen
30.00

–

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
Full year

Millions of yen
45,961

Operating profit% Millions of yen
4.6
7,787

Ordinary profit% Millions of yen
11.5
7,657

1Profit% Millions of yen
11.5
5,215

Earnings per share%
17.3

Yen
105.64

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 statements
Changes 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:

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, 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 June 30, 2023

2,352,891 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)
Six months ended June 30, 2023

49,364,478 shares Six months ended June 30, 2022

251,048,066 shares

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

As of June 30, 2023

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

53,867,822
4,402,267

57,442,573
5,402,386

Merchandise and finished goods
Work in process

1,519,989
444,206

2,263,181
488,673

Raw materials and supplies
Service parts

830,721
197,258

827,472
211,608

Other
Allowance for doubtful accounts

893,799(901)

411,339(1,103)62,155,162

67,046,131

10,491,198

10,464,430

Intangible assets
Investments and other assets

127,352

110,806

Investment securities
Long-term time deposits

447,335
9,000,000

438,565
9,000,000

Other
Allowance for doubtful accounts

3,913,399(63,047)

3,443,349(62,152)

Total investments and other assets

13,297,687

12,819,762

23,916,238

23,394,999

86,071,401

90,441,130

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

6,671,403

Income taxes payable
Contract liabilities–
17,008,688

933,686
16,995,447

Provisions
Other

367,538
1,785,304

389,5812,899,220

Total current liabilities

25,462,172

27,889,339

400,440

397,169

12,0498,305

Non-current liabilities
Provisions
Other
Total non-current liabilities

412,489

405,475

25,874,662

28,294,815

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)

44,737,604(2,437,632)

Total shareholders' equity

60,120,046

62,074,891

76,691

71,424

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

71,42460,196,738

62,146,315

86,071,401

90,441,130

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

Six months ended

June 30, 2022

June 30, 2023

Net sales
Cost of sales

21,094,832
9,205,463

22,661,348
9,879,456

Gross profit

11,889,369

12,781,891

Selling, general and administrative expenses

8,563,314

8,724,185

Operating profit

3,326,054

4,057,706

Interest income
Dividend income

7,529
8,411

7,457
8,031

Compensation income
Other

20,05838,37021,74937,650Total non-operating income

74,37074,887

100,833

112,181Non-operating income

Non-operating expenses
Loss on scrap sales
Other25,49932,714

Total non-operating expenses

126,333

144,895

3,274,091

3,987,698

0000

Profit before income taxes

3,274,091

3,987,698

Income taxes - current
Income taxes - deferred

84,172
1,210,044

807,543484,442

Total income taxes

1,294,216

1,291,985

Profit

1,979,874

2,695,712

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

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

Cash flows from operating activities
Profit before income taxes

Six months endedSix months ended

June 30, 2022

June 30, 2023

3,274,091

3,987,698

Depreciation
Increase (decrease) in allowance for doubtful accounts

331,758(1,333)

297,004(693)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and11,136

4,811(5,750)(4,950)(19,474)

22,181(8,250)(2,833)(995,353)(437)

other 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(15,940)(15,488)

Loss on retirement of non-current assets
Decrease (increase) in receivables and contract assets

0426,475

0(1,000,118)

Decrease (increase) in inventories
Increase (decrease) in trade payables(423,907)(121,413)(798,760)
370,762

Increase (decrease) in accrued expenses
Other, net

1,101,802(872,593)

1,201,583
57,605

Subtotal

2,681,248

4,118,366

Interest and dividends received
Income taxes paid

17,989(1,153,216)

15,507(2,374)

Income taxes refund–

467,229

1,546,021

4,598,728

Payments into time deposits
Proceeds from withdrawal of time deposits(200,000)
1,200,000(200,000)
200,000

Proceeds from sale and redemption of securities
Purchase of property, plant and equipment

100,000(225,009)–(268,662)

Purchase of intangible assets
Purchase of investment securities(36,828)(99,852)

(594)
–

1,101
(766)

1,180
(17,556)

738,644(285,631)

(113)

(399)

Dividends paid

(764,989)(737,790)

Net cash provided by (used in) financing activities(765,102)(738,189)

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

Proceeds from sale and redemption of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares

Effect of exchange rate change on cash and cash equivalents–(155)Net increase (decrease) in cash and cash equivalents

1,519,563

3,574,751

Cash and cash equivalents at beginning of period

53,902,585

53,667,822

Cash and cash equivalents at end of period

55,422,148

57,242,573

5