FinancialResults
Briefing

Fiscal Year Ended March 31,2021

May 2021

Sales Breakdown/Market Share (End of March 2021)
Market Share (Auxiliary Engines forLarge Ocean-going Vessels)

Sales Breakdown

BusinessSection

Internal combustion
engines

Application

Land-use

6％

16％

50%
Domestic 50％

Auxiliary power
generators

Other

84％

Marine-use(Breakdown)

94％

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

DAIHATSUDIESELDAIHATSUDIESEL50%

Main
propulsion systems

25%

20％

Copyright © 2020 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 engine
units (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
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

*Does not include technological partners in China

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Strengthening Business in the After-sales-service
Market/Overseas Strategy (Licensing)
15 yearsago

Sales approx. ¥15.0 billion

Now

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

Major
increase

Sales approx. ¥26.0 billion

Shifting to the offensive
Creation of sales teams specializing in parts
Launch of strategic sales targeting ship-owners
and ship-managers in the after-sales-service
marketGenuine parts usage ratio is approx. 50%.
Scope exists for increasing this rate.
▶Strategic deployment of CMAXS system.

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 © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Market Trend for Marine Cargo
Global shipping capacity

Global ocean cargo volumes, by product

千(Unit: Billiontons)

12Iron ore
Grain
Crude oil
Other

CoalContainers
Petroleum products(Unit: Milliontons)

1,600

Other (cargo vessels, etc.)
Tankers

Compared to2006
94% increase

Bulk carriers

1,400

10The averageincrease rate of+ 3.1% / year

8

1,200
1,000

6800
600

4400

22000
2006

02009

2012

2015

2018

2021

2006

2009

2012

2015

2018

(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.

Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedMarket Trends for Newbuild Vessels
Volume of work in hand, by country

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

60

50

40

2213(Unit: Million tons)

160
140

23100
3180

15

60

1710802018

2019

42020

20JapanSouth Korea
China
European countries total
Other countries total
8109954
50

49
45
41

40
1210911120

22153020Japan
South Korea
China
European countries total
Other countries total

3136

2318

2019

2020

02018

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 are expected to recover gradually from fiscal 2021
onwards.
Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Fiscal Year Ended March 31, 2021

Summary of Earnings

Summary(Unit: Million yen)March 2019
Results

March 2020
Results

March 2021
Results

YoY difference
Increase/decrease（％）

s a l e s

57,27060,08756,745(3,341)(5.6)%

O p e r a t i n gi n c o m e

2,626

2,674994(1,680)(62.8)%

Ordinary income2,576

2,915

1,149(1,766)(60.6)%

Netincome

1,818

1,996

712(1,284)(64.3)%

Basic earnings
p e r s h a r e

57.11

62.80

22.43(40.37)(64.3)%

To t a l a s s e t s

82,51285,55880,381(5,176)(6.1)%

Equity ratio

47.5％

47.5％

51.2％

－－

N e t

POINT

Net sales decreased due to suppressed investment in new vessels by vessel owners, etc. and theimpact of production adjustments at shipyards in Japan
Income fell due to restrictions on movement and delays in delivery for maintenance-related

Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

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

70,00060,00054,013
1,020

50,0008,544

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

Internal combustion
engine section earnings* including maintenance-Net sales

57,210659
8,811

maintenancerelated(Unit: Million yen)

6,000

53,140687* including

4,641
4,500

4,579

7,880

40,00030,00025,497

26,192

22,21420,00010,000

2,561

1,500
18,951

21,54722,359

FY2019FY2020

FY2021

00POINT

3,000

FY2019FY2020

FY2021

Net sales declined, as sales of commercial marine-use engines fell and sales of land-use engines struggled,
despite the contribution of sales of marine-use engines to the Ministry of Defense
Earnings decreased due to a decline in maintenance-related sales, and an increase in outsourcing
expenses and other costs associated with maintaining the performance of some items

Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

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

825

800

72600

258242

74587
217

400
200

25,35026,911

24,59220,00015,00010,000

492

552

4380
FY2019POINT

30,00025,00086668(Unit: Million yen)

FY2020

FY20215,0000FY2019FY2020

FY2021

Total units sold decreased due to deferment of delivery dates, etc.
Maintenance-related sales declined due to stagnation of business meetings and shipments

Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedEarnings Forecasts(Unit: Million yen)March 2022

March 2021
Results

Increase/decrease(%)

Forecasts a l e s

56,74555,000(3.1)

O p e r a t i n gincome

994

1,300

30.7

income

1,149

1,200

4.4

N e ti n c o m e

712

1,000

40.4

B a s i cp e r

e a r n i n g ss h a r e

22.43

31.39

N e t

Ordinary―*Exchange rates: March 2021 (Results): ¥105.35, 1H 2022 (Estimate): ¥105.00, 2H 2021 (Estimate): ¥100.00

Forecast

Plan to increase production of large-scale auxiliary engines for container ships, despite an
expected continuation of the slump in orders
Increase in maintenance-related earnings planned, with a progressive recovery in ocean cargovolumes

Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Progress of the Mid-term Management Plan

DAIHATSU DIESEL MFG. CO., LTD.

Sales Expansion in Growth Markets
China Licensing Business

Trend in Tonnage of New Shipbuilding Completions
2019
Other
15.1%

33.9
Korea
27.6%

2021 (FORECAST)

2020

China
33.8%

million
CGTJapan
23.5%

Other
11.8%

Other
11.9%

29.4
Korea29.9%

million
CGTJapan
21.1%

China
37.1%

30.8
Korea
32.6%

※イメージChina
37.6%

million
CGT

Brand Global ShareJapan
18.0%

Source: Clarkson March 2021 data

Focusing on the expansion of the DAIHATSU brandin China, centering on business alliances
Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Expanding Sales of Dual-fuel Engines(C) Japan Aerospace Exploration Agency (JAXA)

2018

2019

JAXA Tsukuba Space Center

LNG-fueled automobile carrier SAKURA LEADER(6DE28DF)(6DE28DF)※イメージ*Illustration

20202021

LNG-fueled automobile carrier

Large container ship

CENTURY HIGHWAY GREEN (6DE28DF)(8DE35DF/6DE35DF)

Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedImproving Production Efficiency
Through Synergic Effects Among Group Production Bases
Himeji Factory (Commenced operation in 2018)

DAIHATSU DIESEL ANQINGIRONWORKS.CO., LTD.
(Established in 2007)

Nippon Nozzle Seiki Co., Ltd.
Head Office Factory(Became a consolidated subsidiary in 2015)

Moriyama Factory(Commenced operation in 1969)

Nippon Nozzle Seiki Co., Ltd.
Kansai Business Dept. Factory(Became a consolidated subsidiary in 2015)

Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Himeji Factory: a Dedicated Large-scale Engine Factory
Trend in the Proportion of Large-scale Engines※イメージ
Lead time for Large-scale Engine Orders

Himeji Factory Testing Facility

Design240

Procurement

Manufacture

Shipment

200160120

Orders are strong for container ship engines

80

Responding to the trend towards large-scale engines and modal shift

400

2018

20202022

Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedNew Core Businesses: Platforms for GrowthNaval Business

Overseas Land-use

Internalization of Parts
Manufacture

JS KUMANO※イメージ
Fuel oil valve

JS MOGAMINPC Boac Diesel Power Plant
Fuel oil pump

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Focusing on ‘With’ and ‘After’ COVID-19

Rise in environmental
consciousness

Digital technology
to enable remote operation

Accelerate decarbonization
Protect human life from the threatof nature
Environmental management

Response todigitalization

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Roadmap to Zero Emissions from International Shipping
Likely to be brought forward inresponse to the policy speech byPrime Minister Suga on Japan's
aim to realize a carbon-neutral,
decarbonized society by 2050

HydrogenAmmonia

Biofuels
The Ministry of Land, Infrastructure, Transportand Tourism established a roadmap to zero
greenhouse gas (GHG) emissions frominternational shipping in March 2020
Source: Materials prepared by the Ministry of Land, Infrastructure, Transport and Tourism

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Roadmap to Developing Next-generation Fuels
2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Hydrogen combustion technologies
Develop a hydrogen combustion engine
Verification at testing facilities fornext-generation fuels

Universityresearch labs

Verification testing

Completeenginedevelopment

Zero-emission
vesselprototype

Joint researchAmmonia combustion technologies
Verification at testing
facilities for nextgeneration fuels

Biofuels, fuel cells, CO2 capture

Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedDirection of Environmentally-conscious Investmentin Development
Composition of Investment in Development by Theme
Development toimprove existingproducts

Development of dualfuel engines

Digitalization
response

FY2019 Results

Nextgeneration
fuelcompatible

FY2022 PlanEngine operation support system

Key points of investment in development

Cloud computing Maintenance eXpert System (CMAXS)１）Next-generation fuel-compatible engines
Central theme of the Mid-term Management
Plan (～FY2022)
２）Response to “digitalization”① Engine operation support systems through land-shipcommunications

Remote maintenanceSensing (oil mist and gas sensors)② Remote maintenance of onboard engines③ Prompt detection of abnormalities through sensing technology
Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

To Ensure Stable Electricity Supply in an Emergency
Metropolitan Area
Outer Floodway

Installed a diesel generator (8DC-32 engine) in the flood control
facility, aimed at mitigating flood damage from the middle basin ofthe Naka River and Ayase River in the Tokyo metropolitan area

Source: Ministry of Land, Infrastructure,
Transport and Tourism Edogawa River Office

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Environmental Conservation Initiatives
Environmental vision for 2030: plan to reduce CO2 from manufacturing
Increase

Decrease

ALL DAIHATSU
Green Wave ProjectTotal

Target a 35% reduction by 2025

・Plan to invest progressively in solar power
generating equipment for renewable energy
・Plan to replace on-site power generatorswith more efficient models
Himeji Factory・Considering the introduction of energy
recapture equipment

Copyright © 2020 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedMid-term Management Plan Targets(April 1, 2020 to March 31, 2023)

Become the world’s leading engine manufacturer
in terms of quality, technology and service

Vis
ion２

１
Expand sales domains andincrease our sharestrategically by introducing
new products to the market

Develop world-classtechnology with a view to thenext-generation energy

４３Improve production
efficiency through synergiceffects among Groupproduction bases

Establish a solid earnings
base with an awareness ofESG

Copyright © 2020 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.