Consolidated Financial Results
for the Six Months Ended September 30, 2016
[Japanese GAAP]
October 27, 2016
Company name: Daihatsu Diesel Mfg. Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 6023
URL: http://www.dhtd.co.jp/
Representative: Shigeki Kinoshita, President
Contact: Yuichi Uemura, Managing director
Phone: +81-6-6454-2331
Scheduled date of filing quarterly securities report: November 11, 2016
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled (for securities analysts and institutional investors)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2016 (April 1, 2016 to September
30, 2016)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net income
Net sales
Operating income
Ordinary income
attributable toowners of parent
Six months ended
Million yen%
Million yen%
Million yen%
Million yen%
September 30, 2016
28,1396.4
1,097 (41.7)
997 (45.6)
706 (42.4)
September 30, 2015
26,447
(9.8)
1,884
3.8
1,833
(3.2)
1,227
(1.2)
(Note) Comprehensive income: Six months ended September 30, 2016: 591 million yen [(49.2)%]
Six months ended September 30, 2015: 1,164 million yen [(20.1)%]
Basic earnings per share

Six months ended
September 30, 2016
September 30, 2015
(2) Consolidated Financial Position
Total assets
Million yen

Diluted earnings per share
Yen

Yen

22.20
38.55

-

Net assets

Equity ratio

Million yen%

34,365
As of September 30, 2016
75,652As of March 31, 2016
75,06034,224(Reference) Equity: As of September 30, 2016: 34,300 million yen
As of March 31, 2016: 34,204 million yen

45.3
45.6

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen

Yen

Yen

Year-end

Fiscal year ended
0.00
March 31, 2016
Fiscal year ending
0.00
March 31, 2017
Fiscal year ending
March 31, 2017
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None

Total
Yen

Yen

15.00

15.00

15.00

15.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2017 (April 1, 2016 to
March 31, 2017)(% indicates changes from the previous corresponding period.)
Net sales
Million yen%

Operating income

Ordinary income

Net income
attributable toowners of parent

Million yen

Million yen

Million yen%%

Full year
60,0005.2
2,800 (49.0)
2,700 (50.4)(Note) Revision to the financial results forecast announced most recently: None

Basic earnings
per share%Yen

1,900 (47.2)

59.65* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in changes in scope of consolidation): No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
September 30, 2016: 31,850,000 shares
March 31, 2016: 31,850,000 shares2) Total number of treasury shares at the end of the period:
September 30, 2016: 16,170 shares
March 31, 2016: 16,170 shares
3) Average number of shares during the period:
Six months ended September 30, 2016: 31,833,830 shares
Six months ended September 30, 2015: 31,834,057 shares

* Presentation regarding the implementation status of the quarterly review procedures
These quarterly financial results are outside the scope of quarterly review procedures under the Financial
Instruments and Exchange Act. At the time of disclosure of these quarterly financial results, review proceduresfor the quarterly financial statements under the Financial Instruments and Exchange Act have not been
completed.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecasts and other forward-looking statements herein are based on information andcertain assumptions deemed reasonable as of the date of publication of this document. Actual results may differ
significantly from these forecasts due to a wide range of factors. Please refer to “Explanation of Consolidated
Financial Results Forecast and Other Forward-looking Information” on page 3 of the attached material for theassumptions the financial results forecasts are based on, and notes on their use.
(How to obtain supplementary briefing material on quarterly financial results and information on the briefing
session)Briefing session for institutional investors and analysts are scheduled to be held on Tuesday, November 8, 2016.
The briefing materials will be posted on the Company’s website after the session.

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review .................................. 2(1) Explanation of Operating Results ............................................................................................................. 2(2) Explanation of Financial Position ............................................................................................................. 2(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ......... 3
2. Matters Concerning Summary Information (Notes) ....................................................................................... 4(1) Changes in Significant Subsidiaries during the Six Months Ended September 30, 2016 ......................... 4(2) Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial Statements.... 4(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement ...... 4
3. Quarterly Consolidated Financial Statements ................................................................................................ 5(1) Quarterly Consolidated Balance Sheets .................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................ 7(3) Quarterly Consolidated Statements of Cash Flows................................................................................... 9(4) Notes to the Quarterly Consolidated Financial Statements......................................................................11(Notes on going concern assumption)........................................................................................................11(Notes in the case of significant changes in shareholders’ equity) ............................................................11(Segment information, etc.) .......................................................................................................................11
4. Supplementary Information .......................................................................................................................... 13(1) Status of Production, Orders Received, and Sales .................................................................................. 13

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the six months under review (from April 1, 2016 to September 30, 2016), the Japanese economy wason a moderate recovery track against the backdrop of the government’s economic policies, etc., but due to adeceleration in economic activities in emerging countries including China and the impact of the UK’s exit fromthe EU, the level of yen appreciation remained high, and the economy continued to have an uncertain outlook
for the future.
Under such a corporate environment, although the Company advanced active business expansion,consolidated net sales increased by 6.4% year-on-year to 28,139 million yen. In terms of profit, operating
income decreased by 41.7% year-on-year to 1,097 million yen, ordinary income decreased by 45.6% year-onyear to 997 million yen, and profit attributable to owners of parent decreased by 42.4% year-on-year to 706
million yen.
Performance by business segment of the Company and the consolidated Group are as follows.
<Internal combustion engines>
1. Marine-use
While sales of engines centered on mainstay auxiliary power generators increased, net sales increased
by 6.9% year-on-year to 24,005 million yen, and segment income decreased by 36.0% year-on-year to2,103 million yen, owing to decreased maintenance-related sales and the impact of exchange rates.
2. Land-use
Although sales of engines decreased, due to an increase in maintenance-related sales, etc., net sales
decreased by 15.3% year-on-year to 2,421 million yen and segment income amounted to 10 million yen(segment loss of 173 million yen in the previous corresponding period).
Consequently, net sales for the segment increased by 4.4% year-on-year to 26,427 million yen, andsegment income decreased by 32.1% year-on-year to 2,113 million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, although a decrease in unit sales caused net sales to decrease, an
improved profit margin caused segment income to increase.
2. Real estate leasing-related
In real estate leasing-related, both net sales and segment income increased slightly.
3. Electricity sales-related
In electricity sales-related, both net sales and segment income increased.
4. Precision parts-related
Following the making of Nippon Nozzle Seiki Co., Ltd. a consolidated subsidiary, precision partsrelated was newly added.
Consequently, net sales for the segment increased by 50.9% year-on-year to 1,712 million yen, andsegment income increased by 21.4% year-on-year to 250 million yen.

(2) Explanation of Financial Position
In assets as of the end of the second quarter under review, notes and accounts receivable - trade decreased
by 3,901 million yen from the end of the previous fiscal year due to a progress in collection of trade receivablesat the end of the previous fiscal year. Meanwhile, cash and deposits increased by 3,890 million yen, andinventories increased by 622 million yen. As a result, total assets as of September 30, 2016 amounted to 75,652
million yen, an increase of 592 million yen compared with the end of the previous fiscal year.
2

In liabilities, notes and accounts payable - trade and electronically recorded obligations - operating in total
increased by 254 million yen from the end of the previous fiscal year. Additionally, short-term loans payable
and long-term loans payable in total increased by 1,678 million yen, due mainly to financing of new long-termloans payable. Meanwhile, due to payment of income taxes, income taxes payable decreased by 918 million
yen. As a result, total liabilities increased by 451 million yen from the end of the previous fiscal year to 41,287
million yen.
In net assets, retained earnings increased by 212 million yen. As a result, total net assets increased by 141
million yen from the end of the previous fiscal year to 34,365 million yen.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
As to the consolidated financial results forecast for the fiscal year ending March 31, 2017, no revisions havebeen made to the forecast announced on October 17, 2016.
The forecasts stated herein are based on information available to the Company as of the date of publicationof this document. Actual results may differ from these forecasts due to a wide range of factors that may arise in
the future.

3

2. Matters Concerning Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Six Months Ended September 30, 2016
There is no relevant information.
(2) Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial
Statements
There is no relevant information.
(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(Changes in accounting policies)
At certain consolidated subsidiaries, in line with revisions to the Corporation Tax Act, the “Practical
Solution on a change in depreciation method due to Tax Reform 2016” (Practical Issues Task Force (“PITF”)
No. 32; June 17, 2016) has been adopted from the three months ended June 30, 2016. As a result of the
adoption, the depreciation method for facilities attached to buildings and structures acquired on or after April
1, 2016 has been changed from the declining balance method to the straight-line method.
The effect of this change to the quarterly consolidated financial statements for the six months under review
is immaterial.

43. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of September 30, 2016

21,412
16,967
12,148
1,873
1,548
(9)
53,94025,30313,065
12,771
1,885
1,074
(18)
54,082

6,690
3,648
4,403
674
729
16,146
728

6,929
4,194
5,006
57
1,033
17,221
813

1,715
2
2,048
510
(33)
4,244
21,11975,060

987
2
2,009
551
(13)
3,536
21,57075,652

(Million yen)
As of March 31, 2016
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Accrued expenses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of September 30, 2016

7,941
4,284
6,563
287
1,249
713
85
2,867
3,118
27,110

7,589
4,891
6,366
326
330
741
45
2,432
2,850
25,573

3,304
621
463
6,718
137
2,480
13,72540,836

5,180
673
420
6,817
164
2,457
15,71341,2872,434
2,170
30,275(10)
34,8702,434
2,170
30,488(10)
35,083

205
39
(910)
(665)
19
34,22475,060

177
0
(32)
(927)
(782)
65
34,36575,652

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
For the six months ended September 30(Million yen)
For the six months
ended September 30, 2015
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Fiduciary obligation fee
Reversal of allowance for doubtful accounts
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
State subsidy
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

For the six months
ended September 30, 2016

26,447
19,1477,300

28,13921,697
6,442

3,979
1,436
5,415
1,884

4,077
1,266
5,344
1,097

13
21
23
3
39
101

7
11
57
1
21
98

62
57
32
152
1,833

57
135
5
198
997

5
5

0
69
69

9
1
10
1,828
706
(105)
600
1,227
0
1,227

29
0
29
1,037
260
67
328
708
1
706

Quarterly Consolidated Statements of Comprehensive Income
For the six months ended September 30(Million yen)
For the six months
ended September 30, 2015

For the six months
ended September 30, 2016

1,227

708

(23)
8
19
(68)

(28)
0
(71)
(17)

(63)

(117)

1,164

591

1,163

589

0

1

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests8

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months
ended September 30, 2015
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 directors' bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement
benefits
Interest and dividend income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on abandonment of non-current assets
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from compensation
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries
Payments of loans receivableCollection of loans receivable
Proceeds from withdrawal of time deposits
Payments into time deposits
Net cash provided by (used in) investing activities

9

For the six months
ended September 30, 2016

1,828
1,061
16
26
(30)
(243)

1,037
1,265
(13)
(1)
(45)
(147)

14

(74)

(35)
62
(5)
9

(18)
57
(0)
29

4,250

4,119

(2,307)

(425)

(89)

360

517
5,075
38
(62)
73
(858)
4,266

(204)
5,936
27
(55)
(1,161)
4,746

(555)
48
(9)
1
(454)
(351)
38
752
(361)
(891)

(1,265)
0
(5)
(20)
1
0
2,757
(3,139)(1,669)(Million yen)
For the six months
ended September 30, 2015
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of finance lease obligations
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

10

For the six months
ended September 30, 2016

(490)
(130)
(0)
(254)
(875)

2,000
(632)
(164)
(476)
(0)
725

(24)

(187)

2,475
22,0403,614
20,606-

4

24,51624,224

(4) Notes to the Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.

(Notes in the case of significant changes in shareholders’ equity)
For the six months ended September 30, 2016 (from April 1, 2016 to September 30, 2016)
There is no relevant information.

(Segment information, etc.)
1. Information on net sales and profit (loss) by reportable segment
For the six months ended September 30, 2015 (from April 1, 2015 to September 30, 2015)(Million yen)Amountrecorded in
Quarterly
Adjustment
Consolidated(Notes)*2
Financial
Statements(Notes)*3

Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Total

Net sales
Net sales to outside
customers

22,4522,860

25,312

1,134

26,447-

26,447

Inter-segment net
sales or transfers

-

-

-

-

-

-

-

Total

22,4522,860

25,312

1,134

26,447-

26,447

Segment income (loss)

3,288

(173)

3,114

206

3,320

(1,436)

1,884(Notes)*1 The “Other” category is a business segment that is not included in reportable segments, and includes the industrial
machinery-related business, the real estate leasing-related business, and the electricity sales-related business.
*2 The adjustment for segment income (loss) represents corporate expenses, largely consisting of general andadministrative expenses not attributable to the reportable segments.
*3 Segment income (loss) is adjusted with operating income on the Quarterly Consolidated Statements of Income.

11For the six months ended September 30, 2016 (from April 1, 2016 to September 30, 2016)(Million yen)Amountrecorded in
Quarterly
Adjustment
Consolidated(Note)*2
Financial
Statements(Notes)*3

Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Total

Net sales
Net sales to outside
customers

24,0052,421

26,427

1,712

28,139-28,139Inter-segment net
sales or transfers

-

-

-

-

-

-

-

24,0052,421

26,427

1,712

28,139-28,139

2,103

10

2,113

250

2,364

(1,266)

1,097

Total
Segment income(Notes)*1 The “Other” category is a business segment that is not included in reportable segments, and includes the industrial
machinery-related business, the real estate leasing-related business, the electricity sales-related business, and theprecision parts-related business.
*2 The adjustment for segment income represents corporate expenses, largely consisting of general and administrative
expenses not attributable to the reportable segments.
*3 Segment income is adjusted with operating income on the Quarterly Consolidated Statements of Income.

12

4. Supplementary Information(1) Status of Production, Orders Received, and Sales
For the six months ended September 30, 2016 (from April 1, 2016 to September 30, 2016)
1) Production
Production by segment for the six months ended September 30, 2016 is as follows:(Million yen)Segment

VolumeAmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines

721,726

24,005

6.9

Land-use engines

10,7162,421(15.3)

-

1,387

70.2

27,814

6.5

Other
Total
(Notes)*1 Amounts are based on sales prices.
*2 The figures above do not include consumption taxes.

2) Orders received
Orders by segment for the six months ended September 30, 2016 are as follows:(Million yen)Orders received
Segment

VolumeAmountHorsepower

Order backlogs
Year-on-yearchange%Horsepower(3.9)

1,970,699

32.3

142,744

65.6-

VolumeAmountYear-on-yearchange%Internal combustion engine
Marine-use engines

693,094

Land-use engines

63,017

Other

Total

23,180[12,927]
6,388
[294]
1,421
[-]
30,990[13,221]3.9

36,898[22,001]
7,706
[13]
527
[-]
45,132[22,014]

15.1
30.4
198.4
18.3

(Notes)*1 Amounts are based on sales prices.
*2 Figures in brackets [ ] indicate export orders received and the balance of export orders outstanding, and areincluded in totals.
*3 The figures above do not include consumption taxes.

133) Sales results
Sales by segment for the six months ended September 30, 2016 are as follows:
Segment

VolumeHorsepower

AmountExport ratio%(Million yen)
Year-on-year change%Internal combustion engine
Marine-use engines

721,726

Land-use engines

10,716

Other

24,005[14,127]
2,421
[294]
1,712
[-]
28,139[14,421]

Total

58.9

6.9

12.2

(15.3)

-

50.9

51.3

6.4

(Notes)*1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (76.0%), Europe (12.9%), Latin America (6.0%), North America (4.7%), Others (0.4%)*3 The “Other” segment includes precision parts-related (768 million yen), industrial machinery-related (618million yen) and real estate leasing-related (325 million yen).
*4 The figures above do not include consumption taxes.

14