Briefing on Results for the First quarter of theFiscal Year ending March 31, 2017

1(million yen）

First quarter ofFY2016/3

First quarter ofFY2017/3

Change(YoY)

100％ △ 550

Rate of change(YoY)△ 4.9％

11,156100％

10,606

Operating income

806

7.2％

584

5.5％ △ 222 △ 27.5％

Ordinary income

937

8.4％

652

6.1％ △ 285 △ 30.4％

Net income

564

5.1％

398

3.8％ △ 166 △ 29.4％

Capital investment

344－

138－

Depreciation

296－

305－

26.40yen－

18.62yen－

ROE－

Annualized－

Annualized－－Interim dividends pershare－－－－－－Net sales

Net income per share△ 206 △ 59.9％
93.0%

7.78yen △ 29.5％

2(million yen)First quarter of
FY2016/3

First quarter of
FY2017/3

Change(YoY)

Rate ofchange(YoY)

11,156100％

10,606

100％

△ 550

△ 4.9％

Generators

8,305

74.4％

7,776

73.3％

△ 529

△ 6.4％

Welders

1,205

10.8％

1,077

10.2％

△ 128 △ 10.6％

Compressors

291

2.6％

393

3.7％

102

35.1％

Others

1,354

12.1％

1,360

12.8％

60.4％

By productNet sales

3(million yen)First quarter of
FY2016/3Generators

8,305

First quarter ofFY2017/3

Rate of change(YoY)

7,776• In Japan, shipment to the major leasing andrental industry increased and shipment ofemergency generator decreased.
• Overseas, shipment for resource-rich countries
weakened.

△ 6.4％

65%

Domestic market share of*According to aengine generators (mobile-type) Company survey

Manufacturing engine-driven generators with capacityfrom 1kVA to 1100kVA

Mobile-type generator

Stand-by generating sets

Mobile-type generators
Power source on a construction site and for civil engineering workand disaster recovery/restoration, etc.
Stand-by generating sets (stationary type)Back-up power source such as disaster prevention equipment
and offices, etc.
Power-supply vehicles, power light, etc.
4

(million yen)First quarter ofFY2016/3

Welders

1,205

First quarter ofFY2017/3

Rate of change(YoY)

1,077• In Japan and Overseas, the shipment decreasedslightly.

△ 10.6％55%

Domestic market share ofengine welders

Engine welder*According to aCompany survey

The Company developed the first engine-driven welder for outdoor
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 and bridges.
Welding of important structures such as petroleum storage tanks andpipelines.
5(million yen)First quarter ofFY2016/3

First quarter of
FY2017/3

291

Compressors• Shipment to the domestic is mostly
unchanged from previous year.
• Shipment to America increased.

Rate of change
(YoY)

35.1％

393

20%

Domestic market share ofengine compressors*According to aCompany surveyManufacturing compressors with air discharge
amounts from 1.6㎥/min to 42.4㎥/min.
 Breaking-up of roads and ground improvement
work of roads
 Mortar spraying work for preventing landslides ofmountain roads.
 For artificial snow machines on ski slopes, etc.
Engine compressor

Motor compressor

6

(million yen)First quarter of
FY2016/3

Others

1,354First quarter of
FY2017/3

1,360

Rate of change(YoY)

0.4％• Sales to domestic and overseas market is mostly unchanged from theprevious year.

Sales of other products
Self-propelled lifters
Water-related equipment
PartsSecondhand equipment and purchased
merchandiseRepair sales, etc.
Self-propelled lifter

Load testing
equipment7

(million yen)First quarter of
FY2016/3

First quarter ofFY2017/3

Change(YoY)

Rate of change(YoY)

11,156100%

10,606

100%

△ 550

△ 4.9％

Domestic sales

5,788

51.9%

5,575

52.6%

△ 213

△ 3.7％

Overseas sales

5,368

48.1%

5,031

47.4%

△ 337

△ 6.3％

North/Central
America

2,383

21.4%

2,533

23.9%

150

6.3％

Asia

2,029

18.2%

1,805

17.0%

△ 224 △ 11.0％

Others9558.6%6926.5%△ 263 △ 27.5％

By region

Net salesFirst quarter of FY2016/3

Japan

North/Central
America

AsiaFirst quarter of FY2017/3

Japan

North/Central
America

Asia

0

2,000

4,000

6,000

8,000

OthersOthers

10,00012,000 (million yen)8

Decrease in
Operating income• The major factor of the result is a increase ofcost of sales ratio .
(million yen)First quarter ofFY2016/3

First quarter ofFY2017/3

Change(YoY)△ 222

Operating income

806

584

Operating income margin

7.2%

5.5% △ 1.7percentage pointFirst quarter ofFY2016/3

First quarter ofFY2017/3Rate of change(YoY)

Gross profit margin

25.5%

24.0% △ 1.5percentage point

Ratio of SG&A to sales

18.3%

18.5%

Ratio of operating income tosales

7.2%

5.5% △ 1.7percentage point••

0.2percentage point

Gross profit margin improved in the Asia region and decreased by the low operating rates of the factory inJapan and America.
Ratio of SG&A to sales increased slightly due to an increase of personnel expenses, etc.
910Key points• Net sales are expected to be 52.0 billion yen.
• Assumed exchange rate is 110 yen/dollar.
(million yen)

FY2016/3

FY2017/3 (forecast)

Change (YoY)

Rate ofchange(YoY)

Net sales

50,419100%

52,000

100%

1,581

3.1%

Operating income

4,097

8.1%

4,300

8.3%

203

5.0%

Ordinary income

4,494

8.9%

4,600

8.8%

106

2.3%

Net income

3,137

6.2%

3,000

5.8%

Capital investment

1,125

1,000

△ 125 △11.1%

Depreciation

1,284

1,250

△ 34

Net income pershare

146.8yen

140.4yen△6.4 yen

6.5%

6.1%

－－

30.0yen30.0yen－－ROE
Cash dividends pershare△ 137 △4.4 %△2.6%11(million yen)

End of March2014

End of March2015

End of March2016

End of March2017 (plan)

2,453

2,531

1,125

1,000

Cost ofequipment••

Main uses••

Machinery of Fukui plant,etc. 480
Nishinihon Generator Mfg.
270
Vietnam Plant 440
Singapore 1,100

•
•
•
•
•

Machinery of Fukui plant,etc. 440
Nishinihon Generator Mfg.
160
U.S. Plant 50
Vietnam Plant 1,630
Singapore 180

•
•
•
•

Machinery of Fukui plant,etc. 430
Nishinihon Generator Mfg.
80
Vietnam Plant 100
Singapore 280••••

Machinery of Fukui plant,etc. 500
Nishinihon Generator Mfg.
100
U.S. Plant 300
Others 100

Amount of capital investment
million yen

3,000
2,500
2,000
1,500
1,0005000End ofMarch2014

End ofMarch2015

End ofMarch2016

End ofMarch2017(plan)

Denyo Vietnam

12

Overview•Sales of generators are expected to increase by 1,406 million yen(3.7%).
•Sales of welders are anticipated to rise by 200 million yen (3.9%).
•Sales of compressors are forecast to be down 104 million yen (9.4%).
(million yen)

FY2016/3

FY2017/3 (forecast)

Change(YoY)

Rate ofchange(YoY)

50,419 100% 52,000 100%

1,581

3.1%

Generators

38,294 76.0% 39,700 76.3%

1,406

3.7%

200

3.9%

By products

Consolidatedsales

Welders
Compressors
Others5,100 10.1%
1,104

2.2%

5,919 11.7%

5,300 10.2%
1,000

1.9%

6,000 11.5%△104 △9.4%
81

1.4%
13

(million yen)

FY2016/3

Change (YoY)

Rate ofchange(YoY)

100%

1,581

3.1%

FY2017/3 (forecast)

50,419Domestic sales

30,115 59.7%

31,300 60.2%

1,185

3.9%

Overseas sales

20,304 40.3%

20,700 39.8%

3962.0%

North/Central
America

9,776 19.4%

10,200 19.6%

424

4.3%

Asia

6,921 13.7%

7,200 13.8%

279

4.0%

Others3,606

By region

Consolidatedsales

FY2016/3Japan

FY2017/3(forecast)

Japan
0

5,000

10,00015,000100%

7.2%

52,000

North/Central
America
North/Central
America
20,00025,00030,00035,000△306 △8.5%

6.3%

3,300

40,000Asia

Asia
45,000

OthersOthers
50,00055,000 (million yen)

14

Increase in operating
income• The operating income margin slightly increased from theprevious fiscal year and the operating income is expected
to increase by 203 million yen.
(million yen)

FY2016/3

FY2017/3(forecast)

Operating income

4,097

4,300

203

Operating income margin

8.1%

8.3%

0.2percentage points

FY2016/3

FY2017/3(forecast)

Change (YoY)

Change (YoY)

Gross profit margin

24.1%

24.0% △0.1percentage point

Ratio of SG&A to sales

16.0%

15.8% △0.2percentage point

Ratio of operating income to sales

8.1%

8.3%

••

0.2percentage point

The gross profit margin are expected to be unchanged from the previous year.
The ratio of SG&A to sales are expected to be improved slightly due to increase of sales.
15

This material contains assumptions and outlooks for the future andforecasts based on plans as of August 4, 2016.
Actual results may differ materially from projected values due tofuture economic changes and competition.
This material is prepared for the purpose of providing informationand is not meant to solicit investment in securities issued by theCompany.
Investors are responsible for making their own final investment
decision.

16