Consolidated Financial Results
for the Six Months Ended September 30, 2021
[Japanese GAAP]
October 28, 2021
Company name: Daihatsu Diesel Mfg. Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 6023
URL: http://www.dhtd.co.jp
Representative: Yoshinobu Hotta, President
Contact: Takashi Mizushina, Director and Managing Executive Officer
Phone: +81-6-6454-2331
Scheduled date of filing quarterly securities report: November 12, 2021
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 institutional investors and securities analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 1, 2021 to September
30, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Six months ended
Million yen%
Million yen%
Million yen%
Million yen%
September 30, 2021
23,361
(7.0)
323
616
599
September 30, 2020
25,131
(8.0)
(51)
(19)
(210)
(Note) Comprehensive income: Six months ended September 30, 2021: 678 million yen [-%]
Six months ended September 30, 2020: (191) million yen [-%]
Basic earnings per share

Six months ended
September 30, 2021
September 30, 2020
(2) Consolidated Financial Position
Total assets

Diluted earnings per share
Yen

Yen

18.88
(6.64)-Net assets

Million yen

Equity ratio

Million yen

As of September 30, 2021
81,294
41,416
As of March 31, 2021
80,381
41,214(Reference) Equity: As of September 30, 2021: 41,369 million yen
As of March 31, 2021: 41,166 million yen

%

50.9
51.2

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen
Yen
Yen
Fiscal year ended
March 31, 2021
0.00
Fiscal year ending
0.00
March 31, 2022
Fiscal year ending
March 31, 2022
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None

Year-end

Total
Yen

Yen

15.00

15.00

15.00

15.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 toMarch 31, 2022)(% indicates changes from the previous corresponding period.)
Net sales
Million yen

Operating profit%

Million yen

Ordinary profit% Million yen%

Full year
56,000 (1.3)
1,500
50.9
1,800
56.6
(Note) Revision to the financial results forecast announced most recently: None

Profit attributableto owners of parent

Basic earnings
per share

Million yen

%

Yen

1,500

110.7

47.09

* 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, 2021: 31,850,000 shares
March 31, 2021: 31,850,000 shares2) Total number of treasury shares at the end of the period:
September 30, 2021: 93,335 shares
March 31, 2021: 90,935 shares
3) Average number of shares during the period:
Six months ended September 30, 2021: 31,720,893 shares
Six months ended September 30, 2020: 31,722,377 shares* These quarterly financial results are outside the scope of quarterly review procedures conducted by a certified
public accountant or audit corporation.
* 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 and certain
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)A briefing session for institutional investors and analysts is scheduled to be held on Thursday, November 4, 2021.
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 ..................................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ................. 3
2. Quarterly Consolidated Financial Statements and Primary Notes .......................................................................... 4(1) Quarterly Consolidated Balance Sheets ............................................................................................................ 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................................... 6(3) Quarterly Consolidated Statements of Cash Flows ........................................................................................... 8(4) Notes to the Quarterly Consolidated Financial Statements ........................................................................ 9(Notes on going concern assumption) ................................................................................................................ 9(Notes in the case of significant changes in shareholders’ equity) ..................................................................... 9(Changes in accounting policy) .......................................................................................................................... 9(Segment information, etc.) .............................................................................................................................. 10
3. Supplementary Information .................................................................................................................................. 11(1) Status of Production, Orders Received, and Sales .......................................................................................... 111

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, 2021 to September 30, 2021), the Japanese economy
remained sluggish due to the resurgence of the novel coronavirus (COVID-19), which resulted in repeateddeclarations of a state of emergency and implementation of priority measures placed in order to prevent the
spread of the virus, although vaccination progressed to cover a certain ratio of the population. Although theglobal economy was moving toward recovery as a result of the resumption of economic activities, particularly
in developed countries, the outlook remained uncertain due to concerns about the impact on the economy ofdisruptions in international logistics caused by the shortage of containers and the shortage of supply ofsemiconductors and other parts and materials.
In the shipbuilding and maritime industry, the primary industry in which the Company makes its sales, orders
for new vessels, which had been restrained until now, are becoming more active, with expansion in demandprimarily for containerships and bulk carriers against the backdrop of an improvement in the marinetransportation market due to increased demand from people consuming and working from home and other factors.
On the other hand, overall demand for maintenance has not yet returned to pre-COVID levels, due to regional
differences seen in recovery caused by the impact of lockdowns, restrictions on movement, and other restrictive
measures in Southeast Asia.
Under such a corporate environment, the Group has made efforts in cost reduction activities and improving
production efficiency. As a result, consolidated net sales decreased by 7.0% year-on-year to 23,361 million yen,
but in terms of profit, the Company recorded operating profit of 323 million yen (an operating loss of 51 million
yen in the previous corresponding period), ordinary profit of 616 million yen (an ordinary loss of 19 million yen
in the previous corresponding period) and profit attributable to owners of parent of 599 million yen (a loss
attributable to owners of parent of 210 million yen in the previous corresponding period).
Performance by business segment of the Company and the consolidated Group are as follows.
<Internal combustion engines>
1. Marine-use
Although maintenance-related sales increased slightly, net sales decreased by 13.3% year-on-year to
19,283 million yen and segment income decreased by 15.4% year-on-year to 1,467 million yen, due tofactors such as a reduction in sales of engines, primarily to the Ministry of Defense.
2. Land-use
Net sales increased by 74.1% year-on-year to 2,335 million yen while a segment loss of 250 million yen
was recorded (a segment loss of 786 million yen in the previous corresponding period) due to factors suchas an increase in maintenance-related sales, in addition to an increase in sales of engines.
Consequently, net sales for the segment decreased by 8.3% year-on-year to 21,618 million yen, but segment
income increased by 28.5% year-on-year to 1,217 million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, both net sales and segment income rose due to an increase in sales
volume.
2. Real estate leasing-related
In real estate leasing-related, net sales decreased slightly while segment income decreased.
3. Electricity sales-related
In electricity sales-related, net sales decreased slightly while segment income decreased.

2

4. Precision parts-related
In precision parts-related, net sales decreased slightly and segment loss contracted.
Consequently, net sales for the segment increased by 12.1% year-on-year to 1,742 million yen, and segment
income increased by 90.2% year-on-year to 227 million yen.

(2) Explanation of Financial Position
In assets as of the end of the second quarter under review, cash and deposits increased by 5,625 million yen
from the end of the previous fiscal year to 25,953 million yen. Further, inventories rose by 3,338 million yen fromthe end of the previous fiscal year. Meanwhile, due to progress made in collection of trade receivables at the endof the previous fiscal year, notes and accounts receivable - trade, and contract assets decreased by 7,511 million
yen from the end of the previous fiscal year. As a result, total assets as of September 30, 2021 increased by 913
million yen from the end of the previous fiscal year to 81,294 million yen.
In liabilities, notes and accounts payable - trade and electronically recorded obligations - operating in total
increased by 1,081 million yen from the end of the previous fiscal year. Meanwhile, owing to scheduled payment,
short-term borrowings and long-term borrowings in total decreased by 723 million yen. As a result, total liabilities
increased by 710 million yen from the end of the previous fiscal year to 39,877 million yen.
In net assets, retained earnings increased by 122 million yen compared to the end of the previous fiscal year
due to the recording of 599 million yen in profit attributable to owners of parent, despite the payment of cash
dividends of 476 million yen. As a result, total net assets increased by 202 million yen to 41,416 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, 2022, no revisions havebeen made to the forecast announced on October 22, 2021.
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. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsInventories
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

4

As of September 30, 2021

20,327
17,97025,953––

10,458

10,7251,639(11)50,651

14,0631,580(8)52,047

9,646
5,914
5,084
387
891
21,925
942

9,347
5,850
5,084
295
819
21,397
791

2,669
0
3,677
570
(55)
6,862
29,73080,381

2,702
0
3,896
512
(55)
7,057
29,247
81,294

(Million yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Accrued expenses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
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

5

As of September 30, 2021

5,373
4,172
6,545
441
473
625
6
3,271
1,193
22,103

6,224
4,402
6,187
386
279
584
25
3,239
1,773
23,103

6,711
482

6,346
388

66

29

7,225
193
2,384
17,06339,167

7,424
193
2,392
16,77439,8772,434
2,171
36,901(42)
41,4652,434
2,173
37,024(43)
41,588

247
(36)
(509)
(298)
47
41,21480,381

265
39
(524)
(219)
47
41,416
81,294

(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, 2020
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 profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOutsourcing service income
Reversal of allowance for doubtful accounts
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Miscellaneous losses
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on abandonment of non-current assets
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent

6

For the six months
ended September 30, 2021

25,131
20,458
4,673

23,361
18,539
4,821

3,606
1,118
4,724
(51)

3,376
1,120
4,497
323

3
21

3
31

－

42

17
3
96
141

180
3
83
344

46

41

21

－

29
11
110
(19)

2
6
51
616

0
－
0

0
125
126

0
11
11
(31)
285
(102)
183
(214)
(3)
(210)

－
3
3
739
362
(221)
140
598
(0)
599

Quarterly Consolidated Statements of Comprehensive Income
For the six months ended September 30(Million yen)
For the six months
ended September 30, 2020

For the six months
ended September 30, 2021

(214)

598

(12)
(0)
55

17
14
(14)

(20)

62

22
(191)

79
678

(188)

678

(3)

(0)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests7

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months
ended September 30, 2020
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors(and other officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Interest and dividend income
Interest expenses
Loss (gain) on sale of property, plant and equipment
Loss on abandonment of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from collection of loans receivable
Proceeds from withdrawal of time deposits
Payments into time deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Repayments of finance lease obligations
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 resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents at end of period

8

For the six months
ended September 30, 2021

(31)
1,360
(4)
24

739
1,420
(3)
(40)

(25)

19

85

99

(15)

(37)

(25)

(34)

46
0
11
5,634
(2,104)(2,336)
(268)
2,352
25
(46)
(777)
1,553

41
(0)
3
7,526
(3,337)
1,062
505
7,962
34
(41)
(466)
7,488

(822)

(401)

3
(69)
0
333
(314)
(869)

2
0
369
(149)
(201)

(622)
(62)
(476)
(272)

(723)
(37)
(476)
(244)

(1,434)(1,482)

3

25

(746)
20,495

5,830
19,50968－

19,81825,340(22)

(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, 2021 (from April 1, 2021 to September 30, 2021)
There is no relevant information.
(Changes in accounting policy)(Application of Accounting Standard for Revenue Recognition, etc.)“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafter referred
to as the “Revenue Recognition Accounting Standard”) has been applied from the beginning of the first quarter ofthis fiscal year, whereby revenue shall be recognized by the amount of money expected to be received in exchange
for goods or services at the point where control of the agreed goods or services is transferred to the customer.
Further, alternative treatments as stipulated in Paragraph 98 of the “Implementation Guidance on AccountingStandard for Revenue Recognition” have been applied to domestic sales of merchandise or products, for whichrevenue will be recognized at the point of shipment if the period from shipping to the point where control of themerchandise or products is transferred to the customer is a standard period.
The application of the Revenue Recognition Accounting Standard, etc. has been in accordance with thetransitional treatment stipulated in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard,
whereby the cumulative effects of retroactively applying the new accounting policy prior to the beginning of thefirst quarter of this fiscal year has been added to, or subtracted from, the retained earnings at the beginning of thefirst quarter, with the new accounting policy being applied from the balance at the beginning of the first quarter.
However, by applying the method stipulated in Paragraph 86 of the Revenue Recognition Accounting Standard, the
new accounting policy has not been retroactively applied to contracts for which almost all revenue amounts had beenrecognized in accordance with the previous treatment prior to the beginning of the first quarter of this fiscal year. In
addition, by applying the methods stipulated in additional item (1) under Paragraph 86 of the Revenue Recognition
Accounting Standard, accounting treatment has been applied to contract changes made prior to the beginning of thefirst quarter of this fiscal year in accordance with the contractual conditions after all the contract changes have beenreflected, and the cumulative effects of this has been added to, or subtracted from, the retained earnings at the
beginning of the first quarter of this fiscal year.
The impact to profit and loss for this second quarter under review and retained earnings at the beginning of thesecond quarter from applying the Revenue Recognition Accounting Standard, etc. is minor.
Due to the application of the Revenue Recognition Accounting Standard, etc., “Notes and accounts receivable– trade” as presented under “Current assets” on the “Consolidated Balance Sheets” for the previous fiscal year has
been included in “Notes and accounts receivable - trade, and contract assets” from the first quarter of this fiscal year.
In accordance with the transitional treatment as stipulated in Paragraph 89-2 of the Revenue Recognition AccountingStandard, reclassification of accounts under the new display method has not been made for the previous fiscal year.
(Application of accounting standards for calculating fair market values)
From the beginning of the first quarter of this fiscal year, the Accounting Standard for Fair Value Measurement(ASBJ Statement No. 30, July 4, 2019; hereinafter referred to as the “Fair Value Measurement AccountingStandard”) has been applied, and in accordance with the transitional treatments stipulated in Paragraph 19 of the Fair
Value Measurement Accounting Standard and Paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019), a new accounting policy as stipulated by the Fair Value
Measurement Accounting Standard shall be applied going forward. This shall have no impact on the quarterly
consolidated financial statements.
9

(Segment information, etc.)
1. Information on net sales and profit (loss) by reportable segment
For the six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)
Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Adjustment(Notes) *2

Total(Million yen)Amountrecorded in
Quarterly
Consolidated
Statements ofIncome(Notes)*3

Net sales
Net sales to outside
customers

22,235

1,341

23,576

1,554

25,131-

25,131

Inter-segment net
sales or transfers

-

-

-

-

-

-

-

Total

22,235

1,341

23,576

1,554

25,131-

25,131

Segment income (loss)

1,733

(786)

947

119

1,067

(1,118)(51)(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 (loss) represents corporate expenses, largely consisting of selling, general andadministrative expenses not attributable to the reportable segments.
*3 Segment income (loss) is adjusted with operating loss on the Quarterly Consolidated Statements of Income.

For the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)
Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Adjustment(Notes) *2

Total(Million yen)Amountrecorded in
Quarterly
Consolidated
Statements ofIncome(Notes)*3

Net sales
Net sales to outside
customers

19,283

2,335

21,618

1,742

23,361-

23,361

Inter-segment net
sales or transfers

-

-

-

-

-

-

-

Total

19,283

2,335

21,618

1,742

23,361-

23,361

Segment income (loss)

1,467

(250)

1,217

227

1,444

(1,120)323(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 (loss) represents corporate expenses, largely consisting of selling, general andadministrative expenses not attributable to the reportable segments.
*3 Segment income (loss) is adjusted with operating profit on the Quarterly Consolidated Statements of Income.

10

3. Supplementary Information(1) Status of Production, Orders Received, and Sales
For the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)
1) Production
Production by segment for the six months ended September 30, 2021 is as follows:(Million yen)Segment

VolumeAmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines

417,304

19,283(13.3)

Land-use engines

9,708

2,335

74.1

-

1,427

15.2

23,045

(7.1)

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, 2021 are as follows:(Million yen)Orders received
Segment

VolumeAmountHorsepower

Order backlogs
Year-on-yearchange%Horsepower

36.6

1,679,325

20.3

97,525(9.8)-

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

863,491

Land-use engines

27,084

Other

Total

(Notes)29,721[18,503]
4,829
[181]
1,177
[-]
35,728[18,685]32.0

35,205[19,463]
7,230
[313]
444
[-]
42,880[19,776]

31.8

(7.7)
(41.2)
21.4*1 Amounts are based on sales prices.
*2 Figures in brackets [ ] indicate export orders received and the balance of export orders outstanding, and are included
in totals.
*3 The figures above do not include consumption taxes.

113) Sales results
Sales by segment for the six months ended September 30, 2021 are as follows:
Segment

VolumeHorsepower

AmountExport ratio%(Million yen)
Year-on-year change%Internal combustion engine
19,283
56.1(13.3)[10,815]
Land-use engines
9,708
2,335
7.8
74.1
[181]
Other
1,742
12.1
[-]
23,361
Total
47.1
(7.0)
[10,997](Notes) *1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (64.2%), Europe (21.9%), Latin America (7.7%), North America (3.5%), Others (2.7%)*3 The “Other” segment includes precision parts-related (667 million yen), industrial machinery-related (759 million
yen) and real estate leasing-related (315 million yen).
*4 The figures above do not include consumption taxes.
Marine-use engines

417,304

12