Financial
Results
Briefing

Fiscal Year Ended March 31,2022

May 2022

Fiscal Year Ended March 31, 2022

Summary of Earnings

Summary(Unit: Million yen)March 2020
Results

March 2021
Results

March 2022
Results

YoY difference
Increase/decrease（％）

s a l e s

60,08756,74557,599854

1.5

O p e ra t i n gi n c o m e

2,674

994

2,092

1,098

110.4

Ordinary income

2,915

1,149

2,506

1,357

118.1

Netincome

1,996

712

1,968

1,256

176.4

Basic earnings
p e r s h a r e

62.80

22.43

62.01

39.38

176.4To t a l a s s e t s

85,55880,381

89,268

8,886

11.1

Equity ratio

47.5％

51.2％

48.2％

N e tPOINT－－ Profits increased in all segments. In particular, sales increased slightly due to an increase inthe Licensing Business and sales related to environmental equipment in China
 Both sales and income increased in maintenance-related business

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Net Sales and Earnings for the Internal
Combustion Engine Section
Marine-use (Japan)

70,00060,00050,00057,210659
8,811

relatedMarine-use (Over seas)
Land-use (Over seas)(Unit: Million yen)
Land-use (Japan)

Internal combustion
engine section earnings* including maintenance-Net sales

53,140* including
maintenancerelated(Unit: Million yen)

6,000

53,877

687

475

7,880

9,717

4,500

4,579
3,906

40,00026,19230,00022,2143,000

20,00010,0001,500
21,54722,359FY2020

FY2021

18,19500POINT

2,561

25,490

FY2022

FY2020

FY2021

FY2022

 Profits for marine-use engines increased due to an increase in sales of large engines andenvironmental equipment Maintenance-related sales and earnings both increased due to the easing of movement restrictions

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Unit Sales and Maintenance-related Net Sales
Maintenance-related net sales

Units sold
(Unit: Units)

1200

Marine-use (Japan)

Marine-use (Over seas)

Land-use (Japan)

Land-use (Overseas)

1000
800
600

242

745
87
217

400
200

552

438

658
67
216

375

0
FY2020POINT

26,911

25,00086668(Unit: Million yen)

30,000

FY2021

FY2022

24,592

26,38920,00015,00010,0005,0000
FY2020

FY2021

FY2022 Total units sold increased due to increased sales of components for large engines
 Maintenance-related sales increased due to the trend toward easing movement restrictions

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Earnings Forecasts(Unit: Million yen)March 2022
Results

March 2023
Increase/decrease(%)

Forecasts a l e s

57,59965,00012.8

O p e r a t i n gincome

2,092

2,700

29.0

Ordinary

income

2,506

2,700

7.7

N e ti n c o m e

1,968

2,200

11.8

B a s i cp e re arn i n g ss h a r e

62.01

69.07

N e t―*Exchange rates: March 2022 (Results): ¥112.35, March 2023 (Estimate): ¥110.00

Forecast An increase in profits is projected due to plans to increase production of large auxiliary engines at theHimeji Factory, etc.
 An increase in income is projected due to an anticipated increase in profits from commercial engines
and environmentally friendly equipment

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Sales Breakdown/Market Share (End of March 2022)
Market Share (Auxiliary Engines forLarge Ocean-going Vessels)

Sales Breakdown

BusinessSection

Internal combustion
engines

Application

Land-use

6％

19％

58%
Domestic 42％

Auxiliary powergenerators

Other81％

Marine-use(Breakdown)

94％

Export80％〈Share in Japan〉〈Overseas market share〉

DAIHATSUDIESELDAIHATSUDIESEL45%

Main
propulsion systems

26%

20％

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Remarks on Earnings
POINT
Sales by Horsepower(10,000 hp)

Stable capture ofearnings over lifecycle (30 years)▶Post-voyage maintenanceservices are key.
▶Cumulative total of engineunits (number of ships
carrying our engines) isdecisive.
March March March March March March March March March March March March March March March March March March March
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

*Does not include technological partners in China

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Strengthening Business/Overseas Strategy (Licensing)in the Marine-Use Maintenance Business
15 yearsago

Sales approx. ¥15.0 billion

Holding the line Business focus was selling engines to builders ofnew vessels.
 Sales for the after-sales-service did not really exist.

Issues forthe futureNowMajor
increase

Sales approx. ¥26.0 billion

Shifting to the offensive
 Promoting strategic maintenance proposals forship-owners and ship-management customers Raising the genuine parts ratio, creation ofoutlets to the Chinese marine market

Build a service to provide maintenance parts in a timely manner using DX.
Build an abnormality diagnosis and maintenance support system by accumulating engine data.
Build a comprehensive maintenance contract system for digital equipment, including DF engines.

Licensing (in China)
 Contract partner since 1982
 Granting of rights for Manufacture and marketingof certain classes of internal combustion engine
 Expand market share of DAIHATSU brandAnqing CSSC Diesel Engine Co., Ltd.
Anqing Diesel
Anhui Province, China (Yangtze River Basin, 600 km from Shanghai)

SHAANXI DIESEL ENGINE HEAVY
INDUSTRY CO., LTD.
Shaanxi Diesel
Shaanxi Province, China(50 km from Xi’an)

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Market Trend for Marine Cargo
Global shipping capacity

Global ocean cargo volumes, by product14

Iron ore
Grain
Crude oil
OtherCoalContainers
Petroleum products

The averageincrease rate of+ 3.1% / year

(Unit: Milliontons)

1,600

12

1,400

10

1,200

Other (cargo vessels, etc.)

Compared to2006
98% increase

Tankers
Bulk carriers

1,000

8800

6600

4400

22000
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023

千(Unit: Billiontons)

0

2006

2008

2010

2012

2014

2016

2018

2020

(Estimate)

Source: The Shipbuilders’ Association of Japan

 Increasing trend in shipping capacity in line with increase in ocean cargo volumes, anda recovery in maintenance demand is expected.

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Market Trends for Newbuild Vessels
Volume of work in hand, by country

Volume of orders received, by country
千(Unit: Million tons)

90

Japan
South Korea
China
European countries total
Other countries total

80
70

2240

132022140

80

1860

17103413

8672018

2019

2020

2021

7
1154

8
1072

50
49
45
41

40
20

10812120

31230160

100

1530
20180

416050JapanSouth Korea
China
European countries total
Other countries total 99(Unit: Million tons)

31532318182019

2020

2021

02018

36

Source: The Shipbuilders’ Association of Japan

 Volume of orders received and volume of work in hand both trended downwards from fiscal 2019, except in China,
due to the COVID-19 crisis, but the trend is for a rapid recovery beginning in 2021, mainly in China and South Korea,
due to an increase in demand for specific types of vessels such as container vessels and demand for replacement withgas-fueled vessels due to environmental measures.

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved2020 Results of the Mid-term Management Plan (1)Reactor(built-in catalyst)

Bypassdamper

Exhaust pipe(built-in mixer)
Exhaust pipe(urea water injection)

Selective catalytic reduction anddenitration equipment (SCR)

CENTURY HIGHWAY GREEN

Ship of the Year 2021, Winner: Large Cargo Ship Category
Manufacturer: Tadotsu Shipyard Co., Ltd. (Imabari
Shipbuilding Group)
6DE28DFx3
Enginetype: Auxiliary,
6DE28DF x 3

DAIHATSU DIESEL

SystemPatentacquired

Unique bypass-integratedstructure
NOx in exhaust gas is
decomposed and converted
into harmless nitrogen andwater

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

2020 Results of the Mid-term Management Plan (2)Naval Vessel BusinessTechnological Partner Business

Mogami-class frigate
JS Kumano
Source: Maritime Self-Defense Force website

Commissioned : March 22, 2022
Engines supplied: 3 sets of power generators for use
inside the MTU ship
6DE28DFx3台

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedMid- to Long-term Vision
FoundedEstablished1907

1966

Corporate Philosophy
We shall strive unstintingly for the betterment of society
and symbiosis with our neighbours, drawing on the boldspirit of creativity and yearning for technologicalachievement we nurture within ourselves.
Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedMid- to Long-term Vision: Social Change and Issues

Decliningbirthrateand aging
population

GlobalunrestDigitalized society

Decline of local
infrastructure

Aginginfrastructure

Rapid
technologicalinnovation

Risk of urban
disasters
Transition torenewableenergyClimatechangeIncreased
infrastructure
maintenance
costs

Depletion ofenergy
resources

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedMid- to Long-term Vision: DAIHATSU DIESEL’s Mission

Support the safety andsecurity of people'slives.

Protect the rich naturalenvironment.

We are part of the social infrastructure of the sea and land.

We will strive to switch to green energy to confront
global environmental issues.

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedMid- to Long-term Vision: Solutions to Accomplish Our Mission

Balancing GHG (greenhouse gas)
reduction and economic valueenhancement

Providing new customer value

GHG

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Efforts to Reduce GHG Emissions

Green Strategy

DAIHATSU DIESELTechnology Roadmap2020

2023

2025

2030

1st

2nd

3rd

4thFuel-efficient diesel
dual fuelMultifueltechnology

Industry's top-levelhigh-efficiency
combustion technology

Commercialization ofengines compatible withnew fuels

HydrogenAmmonia

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Providing new customer value
Digital Strategy

Reliability
improvement

Safe
operation

Low-cost
operation

Customer value/solutions(2) Improvement in fuel efficiency

Business development
System engineering
Statusmonitoring

Engines

Data science

Equipment
Sensing

AI technology

Sensing

Analysis(1) Big data
(2) Data security
technology(3) Statistical analysis(4) Machine learning/AI(5) Deep learning/AI(1)Vibration sensors(3)Temperature sensors(2)Pressure sensors (4)Local power
generation technology(5)Data servers(6)Satellite
communication
Communication
technology

Predictivediagnosis

Remotemonitoring

The FUTURE
Engine/equipment abnormality diagnosis, fault prediction, and appropriate support
Safe/secure/low-cost operations

Increasedautonomy

Toward automatedships

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Contributing to Achievement of the SDGs ThroughPromotion of ESG Management
 Building a decarbonized society Building a recycling-orientedsociety Building a society in harmonywith nature Promoting diversity and inclusion Promoting work-style reform Social contribution activities

A power supply company thatcontinuously grows and evolves while
contributing to the realization of asustainable society through reliable
products and services in harmony with
the natural environment
 Creating a corporate culture for innovation
 Strengthening Group governance

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedMid- to Long-term Vision: DAIHATSU DIESEL’s GoalAchieve net zero emissions
while accelerating sellingservices as a power supply
company that leads to thefutureCopyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

These materials contain statements relating to future earnings and business strategy, etc. Inherent in thesestatements are risk and uncertainty; they form no guarantee of future performance.
Please be aware that actual results may differ significantly from forecasts, due to changes in the businessenvironment, etc.
Furthermore, information relating to companies other than the Company or the Company group, etc., contained here
has been taken from publicly available information, etc. No verification of any kind has been undertaken by theCompany, and no guarantee is offered regarding the accuracy orappropriateness of such information.
The information contained in these materials is intended only for purposes of provision of information, and not forsolicitation to purchase securities.