Consolidated Financial Results
for the Fiscal Year Ended March 31, 2019
[Japanese GAAP]
April 25, 2019
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: Osamu Goda, Vice president
Phone: +81-6-6454-2331
Scheduled date of Annual General Meeting of Shareholders: June 27, 2019
Scheduled date of commencing dividend payments: June 28, 2019
Scheduled date of filing annual securities report: June 27, 2019
Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 to March 31, 2019)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 201957,270(4.8)
2,626 (13.7)
2,576 (17.0)
1,818 (13.2)
March 31, 2018
60,1662.1
3,044 (13.0)
3,104
(9.8)
2,095
(9.6)
(Note) Comprehensive income: Fiscal year ended March 31, 2019: 1,648 million yen [(21.9)%]
Fiscal year ended March 31, 2018: 2,110 million yen [(21.5)%]
Basic earnings
per share

Diluted earnings
per share

Rate of return on
equityOrdinary profit
to total assets

Operating profit
to net sales

Fiscal year ended
Yen
Yen
%
%
%
March 31, 2019
57.11
4.7
3.2
4.6
March 31, 2018
65.83
5.6
3.9
5.1
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2019: - million yen
Fiscal year ended March 31, 2018: - million yen(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen39,263As of March 31, 201982,512As of March 31, 2018
80,96938,092(Reference) Equity: As of March 31, 2019: 39,219 million yen
As of March 31, 2018: 38,049 million yen

47.5
47.0

1,232.01
1,195.24(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2019
March 31, 2018

Net cash provided by(used in) operating
activities

Net cash provided by(used in) investing
activities

Net cash provided by(used in) financing
activities

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

4,792
4,480

(5,178)(6,110)109(1,377)

20,143
20,4202. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2018
March 31, 2019
Fiscal year ending
March 31, 2020
(Forecast)Total
dividends

Total

Yen

Yen

Yen

Yen

-

0.00
0.00

-

15.00
15.00

15.00
15.00

-

0.00

-

15.00

15.00

Payoutratio(consolidated)

Yen Million yen

477
477

Dividends
to netassets(consolidated)

%

%

22.8
26.3

1.3
1.2

22.8

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 toMarch 31, 2020)(% indicates changes from the previous corresponding period.)
Net salesFirst half
Full year

Million yen

26,00062,000Operating profit
%

(2.7)
8.3

Million yen

Ordinary profit% Million yen

200 (68.0)
3,000 14.2%

200 (73.4)
3,000 16.4

Profit attributable toowners of parent
Million yen

0
2,100

%

(100.0)15.5

Basic earnings
per share* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in changes in scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2019: 31,850,000 shares
March 31, 2018: 31,850,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2019: 16,235 shares
March 31, 2018: 16,235 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2019: 31,833,765 sharesFiscal Year ended March 31, 2018: 31,833,769 shares

Yen

0.00
65.93

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 toMarch 31, 2019)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating profit
Ordinary profit
ProfitFiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
49,755711 (47.6)
March 31, 2019
(5.9)
1,698 (28.6)
1,270 (34.8)
March 31, 2018
52,862
2.4
1,356
(6.1)
2,379
(5.0)
1,949
(4.3)
Basic earnings per share
Fiscal year ended
March 31, 2019
March 31, 2018

Diluted earnings per share
Yen

Yen

39.89
61.23

-

(2) Non-consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

As of March 31, 201974,69032,38273,542
31,663As of March 31, 2018
(Reference) Equity: As of March 31, 2019: 32,382 million yen
As of March 31, 2018: 31,663 million yen

43.4
43.1

1,017.23
994.66

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 toMarch 31, 2020)(% indicates changes from the previous corresponding period.)
Net salesFirst half
Full year

Million yen

22,00054,000

%

(4.1)
8.5

Million yen

700
2,300

Basic earnings
per share

ProfitOrdinary profit%(39.9)
35.4

Million yen

700
2,000

%

(37.7)
57.5

Yen

21.97
62.79

* These consolidated financial results are outside the scope of audit conducted by a certified public accountant oraudit corporation.
* Explanation of the proper use of financial results forecast and other notes(Note on forward-looking statements)
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 “Analysis of Operating Results”
on page 2 of the attached material for the assumptions the financial results forecasts are based on, and notes on
their use.
(How to obtain supplementary briefing material on annual financial results and information on the briefing
session)A briefing session for institutional investors and analysts is scheduled to be held on Wednesday, May 22, 2019.
The briefing materials will be posted on the Company’s website after the session.

Table of Contents
1. Operating Results and Financial Position ............................................................................................................... 2(1) Analysis of Operating Results ........................................................................................................................... 2(2) Analysis of Financial Position........................................................................................................................... 3(3) Dividend Policy ................................................................................................................................................ 4(4) Business and Other Risks.................................................................................................................................. 4
2. Overview of the Corporate Group .......................................................................................................................... 6
3. Basic Stance Concerning Choice of Accounting Standards.................................................................................... 8
4. Consolidated Financial Statements and Primary Notes .......................................................................................... 9(1) Consolidated Balance Sheets ............................................................................................................................ 9(2) Consolidated Statements of Income and Comprehensive Income .................................................................. 11(3) Consolidated Statements of Changes in Equity .............................................................................................. 13(4) Consolidated Statements of Cash Flows ......................................................................................................... 15(5) Notes to the Consolidated Financial Statements ............................................................................................. 17(Notes on going concern assumption) .............................................................................................................. 17(Important matters that form the basis for preparing Consolidated Financial Statements) .............................. 17(Changes in presentation methods) ................................................................................................................... 20(Segment information, etc.) .............................................................................................................................. 21(Per share information) ..................................................................................................................................... 24(Significant subsequent events) ........................................................................................................................ 24
5. Non-consolidated Financial Statements................................................................................................................ 25(1) Non-consolidated Balance Sheets ................................................................................................................... 25(2) Non-consolidated Statements of Income ........................................................................................................ 27(3) Non-consolidated Statements of Changes in Equity ....................................................................................... 28
6．Other ................................................................................................................................................................... 30(1) Status of Production, Orders Received, and Sales (April 1, 2018 to March 31, 2019) ................................... 30(2) Changes in Directors and Corporate Auditors................................................................................................. 31

1

1. Operating Results and Financial Position(1) Analysis of Operating Results1) Summary of operating results for the fiscal year under review
During the consolidated fiscal year under review, the Japanese economy remained on a moderate recovery
trend against a backdrop of the government economic policies that led to continued improvements in thecorporate earnings and the employment environment, while there was an increase in capital investments and arebound in consumer spending. However, the future economic outlook remained uncertain due to factors suchas concerns over the trade frictions between the United States and China, and slowdown in the Chinese
economy.
In the shipbuilding and maritime industry, the primary industry in which the Company makes its sales,
global completed construction volume for newly-built vessels during the previous year was 57,810 thousand
gross tons, a 12.1% decrease year-on-year, while order volume for new vessels reached 51,430 thousand grosstons, a 19.1% increase year-on-year. However, the volume is 69.7% lower than the level of the fiscal year 2007,
and it is believed that it will take some time for demand for new shipbuilding to achieve a full-fledged recovery.
Under such a corporate environment, the Company has been working to develop growing markets andexpand sales in line with the three key objectives of “Solidification and expansion of existing businesses,”“Growth through expansion of peripheral business domains,” and “Initiatives for future business developmentin preparation for 100th anniversary” within its Mid-term Management Plan (April 1, 2015 to March 31, 2020).
Concerning “Solidification and expansion of existing businesses,” the Company began the construction of a
new factory in Himeji City, Hyogo Prefecture for the first time in about 50 years in November 2017. The newfactory started operation in August 2018 and shipped out its first unit in October 2018. Going forward, theCompany will further strive to meet the needs of customers under a two-base system comprising the Himeji
Factory with both cutting-edge manufacturing technology and equipment and the Moriyama Factory withoutstanding expertise. In addition, while order receipt environment is under extremely tight conditions due tointensifying competition among companies, the Company will strive to achieve sustainable growth andenhancement of profitability with its worldwide sales network and after-sales service system and the entire
group companies acting as one.
Concerning “Growth through expansion of peripheral business domains,” the receipt of orders remains
steady for the maintenance support service using “CMAXS LC-A,” a next generation cloud-based engine
condition monitoring system. In terms of the selective catalytic reduction (SCR) device that conforms to NOx
Tier III regulations effective from January 2016, orders for more than 160 units mainly for foreign vessels havebeen received as a result of efforts to acquire new orders. Moreover, in February 2019 the first unit of the“Aqueous Urea Solution Generator” capable of easily generating urea solution that serves as a reducing agent
for SCR was shipped out. The Company will provide its customers with the best solutions which areenvironmentally friendly and realize the improvement of customer’s convenience and safety as well as the
reduction of total lifecycle cost, aiming to become the industry’s leading company as an engine manufacturer
with excellent environmentally-conscious technologies.
Concerning “Initiatives for future business development in preparation for 100th anniversary,” an executive
officer system was introduced in June 2018 to enhance management decision-making and speed up executionof business operations. Meanwhile, the Company is also working to strengthen corporate governance andenrich dialogue with stakeholders. In the future, the Company will conduct management with the goal ofcontinuous growth, while aiming for still more improvement in corporate value.
As a result of the efforts stated above, consolidated net sales decreased by 4.8% year-on-year to 57,270
million yen, operating profit decreased by 13.7% year-on-year to 2,626 million yen, ordinary profit decreased
by 17.0% year-on-year to 2,576 million yen, and profit attributable to owners of parent decreased by 13.2%
year-on-year to 1,818 million yen.
Performance by business segment of the Company and the consolidated Group are as follows.
<Internal combustion engines>
1. Marine-use
Due partly to worsening profitability in engines in addition to a drop in sales of engines mainly including2

mainstay auxiliary engine for power generation, net sales decreased by 3.0% year-on-year to 44,448 million
yen, and segment income decreased by 24.4% year-on-year to 3,840 million yen.
2. Land-use
Net sales decreased by 10.3% year-on-year to 9,564 million yen and segment income increased by 273.4%
to 801 million yen due partly to improved profitability in engines despite a decline in items sold.
Consequently, including parts sales and maintenance construction, net sales for the segment decreased by
4.4% year-on-year to 54,013 million yen, and segment income decreased by 12.3% year-on-year to 4,641
million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, due to a decrease in sales volume, both net sales and segment income
decreased.
2. Real estate leasing-related
In real estate leasing-related, net sales increased slightly and segment income decreased slightly.
3. Electricity sales-related
In electricity sales-related, net sales decreased slightly and segment income increased.
4. Precision parts-related
In precision parts-related, net sales decreased but segment income increased.
Consequently, net sales for the segment decreased by 11.3% year-on-year to 3,256 million yen, and segment
income decreased by 9.5% year-on-year to 335 million yen.
2) Outlook for the next fiscal year
Concerning the outlook of the Group for the next fiscal year, in the Company’s mainstay marine-use market,
unit sales of small engines aimed at bulk carriers will be strong, reflecting the recovery in marine cargo market,
and sales of large engines will increase from the second half of the fiscal year. In addition, with theenvironmental regulations for the maritime industry being tightened, sales of the selective catalytic reduction(SCR) device as regulatory-compliant ancillary equipment are expected to double compared with the priorfiscal year, and delivery of dual fuel engines to customers will begin. While the average sales price per unit willremain unchanged from the preceding fiscal year, an increase in income is anticipated due to an increase in unit
sales.
Meanwhile, in the land-use market, net sales are forecast to increase year-on-year due to favorable
performance in emergency power generation facilities in and outside Japan against the backdrop of society’s
growing awareness of disaster crisis management.
However, the trends in the marine cargo market remain unpredictable as the future outlook of the global
economy is becoming increasingly uncertain due to the trade frictions and other factors although there are signsof improvement in some maritime indices.
In consideration of these circumstances, the Group will seek to accelerate the enhancement of its businessstructure, expand the scale of sales, and secure profits for continuous growth, through efforts including
selection and concentration of management resources, product line reviews and more thorough cost reduction.
From the factors outlined above, the financial results forecast of the Group for the next fiscal year is 26,000
million yen in net sales, 200 million yen in operating profit, 200 million yen in ordinary profit, and 0 million
yen in profit attributable to owners of parent for the first half period and 62,000 million yen in net sales, 3,000
million yen in operating profit, 3,000 million yen in ordinary profit, and 2,100 million yen in profit attributableto owners of parent for the full year.

(2) Analysis of Financial Position
In assets as of the end of the fiscal year under review, notes and accounts receivable - trade increased by 523
million yen from the end of the previous fiscal year while the turnover period of accounts receivable was 107.3
days (compared with 98.2 days at the end of the previous fiscal year). Meanwhile, investment securities
increased by 1,778 million yen compared with the end of the previous fiscal year. Inventories decreased by 287
million yen while the turnover period was 66.4 days (compared with 69.7 days at the end of the previous fiscal
3

year). Total assets as of March 31, 2019 amounted to 82,512 million yen, an increase of 1,543 million yen
compared with the end of the previous fiscal year.
In liabilities, notes and accounts payable - trade and electronically recorded obligations in total increased by
815 million yen from the end of the previous fiscal year while their turnover period was 77.9 days (comparedwith 73.6 days at the end of the previous fiscal year). Meanwhile, due partly to the newly procured long-termloans payable of 2,500 million yen for the purpose of building the Himeji Factory, short-term loans payable andlong-term loans payable in total increased by 1,169 million yen. The ratio of interest-bearing liabilities(excluding lease obligations) to net sales at the end of the current fiscal year was 23.4%, up 3.1 points from theend of the previous fiscal year. On the other hand, other current liabilities decreased by 1,675 million yen,mainly due to decreases affected by capital expenditure. As a result, total liabilities increased by 372 million
yen from the end of the previous fiscal year to 43,249 million yen.

(3) Dividend Policy
The Company views the return of profits to shareholders as an important management objective, and while
maintaining internal reserves to improve profitability and strengthen its financial standing, the Company has abasic policy of implementing distribution of profits in accordance with business results, and has placed“enhancing dividend payout ratio” as a target under the Mid-term Management Plan period (April 1, 2015 toMarch 31, 2020).
(4) Business and Other Risks
Forward-looking statements, such as forecasts, anticipation, expectations, and prospects, indicated in thissection reflect the judgment of the Group as of March 31, 2019 and actual results in the future may differ
significantly from them.
1) Foreign exchange risk
For certain products and related parts and services, the Group conducts sales and procurement in regions
other than Japan, and may conduct these transactions in the US dollar, euro, or other local currency, aside fromthe yen. Some overseas consolidated subsidiaries also conduct sales in yen, and concerning these accounts
receivable at the fiscal year-end, foreign exchange losses or gains may occur due to foreign exchange
fluctuation of the standard accounting currency, and it is possible that there may be an effect on business results
or financial conditions.
2) Cash flows
Consolidated net sales of the Group amounted to 57,270 million yen while interest-bearing debt (excluding
lease obligations) was 13,411 million yen. In addition, cash and cash equivalents at the end of the fiscal year
under review decreased by 276 million yen. Moving forward, the Group will strengthen cash flow
improvement activities, and work toward measures to strengthen the financial standing through inventory
reduction and improvement in transaction conditions, etc., but as fund procurement is dependent on indirect
financing, variations in financial trends may influence cash flows.
3) Dependence on technologies of certain suppliers
The Group sources many of the parts that comprise an engine from outside sourcing, and certain key parts
are dependent upon suppliers that possess specific advanced technologies. Concerning these, it is possible thatprocurement may become unstable due to conditions at the suppliers. Additionally, the Group is working
toward continued reduction of procurement costs via measures such as domestic procurement at lower costs
and seeking new suppliers in countries such as China, but if factors such as a rise in prices for specificmaterials arise, it is possible that cost reductions will not proceed steadily.
4) Legal restraints
Regulations regarding environmental burden reduction are becoming increasingly strict toward diesel
engines, a mainstay product of the Company. In addition to the Air Pollution Control Act for land-use,
restrictions for exhaust gases based on the International Convention for the Prevention of Pollution from Ships
are forecast to add another level of strictness for marine-use. While the Group is working toward productdevelopment to satisfy these restrictions, if delays arise during development, there may be an effect on policies
to secure and expand market share for the Company’s products.
45) Credit risk associated with accounts receivable
The Group possesses accounts receivable toward transaction partners. As a result, amid changes in financial
trends and uncertainty in the economy, the Sales and Transaction Partner Management Committee wasestablished, and countermeasures are in place to prevent occurrence of bad debts and doubtful account losses
by continuously paying close attention to business conditions of credit counterparties. However, there may be
manifestations of collection risk if unforeseen or unavoidable conditions arise due to sudden changes in themarket environment, etc.
6) Risk of natural disasters
The production of the Group’s mainstay diesel engines is concentrated in two locations, at the Moriyama
Factory in Moriyama City, Shiga Prefecture, and the Himeji Factory in Himeji City, Hyogo Prefecture.
However, there is the possibility that production activities may be obstructed in the event a natural disaster suchas a large-scale earthquake, storm, flood, etc. as well as other disaster such as fire, etc.
7) Risk of oversea expansion
The economic environment surrounding the marine cargo and vessel markets, which most greatly affect theGroup, is heavily impacted by expansion of emerging markets, particularly the Chinese economy, and if
unforeseen circumstances cause the vessel market in China to shrink and engine production volume at licensees
in China to sharply decrease, there may be discord in the medium-term plan to aim for share expansion for
Daihatsu-branded engines in tandem with Chinese licensee engines.

52. Overview of the Corporate GroupThe Group is comprised of the Company and its 23 subsidiaries and other companies, and engages in thebusinesses such as production and distribution of internal combustion engines and industrial equipment as well as
real estate leasing.
Concerning the industrial equipment business, all deliveries are made to one other associated company.
Businesses and the position of the Company and each subsidiary and associated companies within the relevantbusiness are as follows.

Category

Main Products (Business)

Major Companies

Diesel engines for marine-use
Diesel engines for land-use

Daihatsu Diesel Mfg. Co., Ltd., DAIHATSU DIESEL HIMEJI CO.,Gas turbine

LTD.

Sales of parts for the above
Daihatsu Diesel Mfg. Co., Ltd., DAIHATSU DIESEL EAST JAPANCO., LTD., DAIHATSU DIESEL NAKANIHON CO., LTD.,Internal Marine-use/
combustion land-use
engines
engines

Diesel engines for marine-use

DAIHATSU DIESEL SHIKOKU CO., LTD., DAIHATSU DIESEL

Diesel engines for land-use

NISHINIHON CO., LTD.

Gas turbine

DAIHATSU DIESEL (ASIA PACIFIC) PTE. LTD.

Sales of parts for the above

DAIHATSU DIESEL (EUROPE) LTD.
DAIHATSU DIESEL (AMERICA), INC.
DAIHATSU DIESEL (SHANGHAI) CO., LTD.

Information handling service
Transportation

DS CORPORATIONInternal warehouse management

DAIHATSU DIESEL PARTS SERVICE CO., LTD.,

DesignDD TECHNICAL CO., LTD.*1

Production and distribution

DAIHATSU DIESEL ANQING IRONWORKS.CO., LTD.*2

After-sales service

Other

Industrial
equipment
Real estateleasing
Electricity
sales
Precision
parts

DAITEK COMPANY INCORPORATEDMD ENGINEERING CO., LTD.*1

Sale of aluminum wheels

Daihatsu Diesel Mfg. Co., Ltd.

Rental office

Daihatsu Diesel Mfg. Co., Ltd., DAIHATSU DIESEL UMEDA
CITY CO., LTD.

Solar power generation businessDaihatsu Diesel Mfg. Co., Ltd.

Precision parts

Nippon Nozzle Seiki Co., Ltd.

(Notes)1. Marked with *1: Non-consolidated subsidiaries
2. Marked with *2: Associated companies

6Production
DAIHATSU DIESELHIMEJI CO., LTD.

Sale of internal combustion
engines and parts
9 companies

Information handlingservice
DAITEK COMPANY
INCORPORATEDTransportation
DS CORPORATIONInternal combustion
engines(Marine-use/land-use engines)

After-sales service(Non-consolidated
subsidiary)
MD ENGINEERING CO.,LTD.

Internal warehousemanagement
DAIHATSU DIESELPARTS SERVICE CO.,LTD.
Design (Non-consolidated
subsidiary)
DD TECHNICAL CO.,LTD.

Daihatsu Diesel
Mfg. Co., Ltd.

Production and distribution(Affiliate)
DAIHATSU DIESELANQINGIRONWORKS.CO., LTD.

Generalcustomers

Rental office
DAIHATSU DIESELUMEDA CITY CO., LTD.
Other
(Real estateleasing-related)
Delivery of aluminum
wheels(Other associatedcompany)
Daihatsu Motor Co., Ltd.

Other
(Industrial
machinery-related)

Other(Power sellingrelated)

DAIHATSUDIESEL UMEDA
CITY CO., LTD.

Other
(Real estateleasing-related)

Nippon Nozzle

Other(Precision partsrelated)

Seiki Co., Ltd.

(Note)DAIHATSU DIESEL UMEDA CITY CO., LTD. partially owns the “Umeda Sky Building,” and is in the rental office business.

73. Basic Stance Concerning Choice of Accounting Standards
Taking into consideration the comparability of consolidated financial statements among companies, theGroup prepares its consolidated financial statements using Japanese GAAP.
With regard to International Financial Reporting Standards, the Group’s policy is to respond appropriately
based on consideration of the situation in Japan and overseas.

8

4. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
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

9

As of March 31, 2019

21,676
16,575
10,5571,572(13)50,36820,90517,098
10,2691,931(12)50,193

7,682
3,715
5,088
6,551
908
23,946
1,390

10,883
6,899
5,088
113
836
23,821
1,442

1,058
1
3,753
513
(63)
5,263
30,60080,969

2,836
1
3,589
681
(53)
7,055
32,31982,512

(Million yen)
As of March 31, 2018
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
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

10

As of March 31, 2019

6,965
4,845
4,642
497
710
698
51
2,671
3,575
24,657

7,297
5,328
6,193
562
414
703
45
2,851
1,900
25,296

7,598
1,134
460
6,456
167
2,400
18,21942,877

7,217
1,077
521
6,618
206
2,310
17,95343,2492,434
2,191
33,719(10)
38,3342,434
2,191
35,060(10)
39,675

255
5
(545)
(285)
42
38,09280,969

180
7
(643)
(455)
43
39,26382,512

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2018
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
Non-operating income
Interest income
Dividend income
Foreign exchange gains
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 profit
Extraordinary income
Gain on sales of non-current assets
State subsidy
Other
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on sales of non-current assets
Loss on valuation of golf club membership
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

11

For the fiscal year
ended March 31, 201960,16646,43913,72657,27044,16013,1098,060
2,621
10,682
3,044

8,132
2,351
10,483
2,626

12
39
–
114
16
129
312

12
45
49
226
3
133
469

100
91
61
253
3,104

104
–
415
519
2,576

0
–
–
0

0
239
8
247

53
0
0
54
3,050
1,018
(62)
956
2,094
(1)
2,095

11
–
4
15
2,808
750
239
990
1,818
0
1,818

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2018
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-controllinginterests

12

For the fiscal year
ended March 31, 2019

2,094

1,818

6
5
(1)
5
15
2,110

(75)
–
2
(97)
(170)
1,648

2,111

1,648

(1)

0

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2018
(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

Treasury shares

Total shareholders’equity2,190

32,101(10)

36,7162,434

Changes of items during period
Dividends of surplus

(477)

(477)

Profit attributable to ownersof parent

2,095

2,095

Purchase of treasury shares(0)Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

(0)

0

0

-

0

1,618

(0)

1,618

2,434

2,191

33,719(10)

38,334

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

248

(5)

6

(550)

(301)

45

Total net
assets36,460

Dividends of surplus(477)

Profit attributable toowners of parent

2,095

Purchase of treasury shares
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

(0)

0

6

5

(1)

5

15

(2)

13

6

5

(1)

5

15

(2)

1,631

5

(545)

(285)

42

38,092255-

13

For the fiscal year ended March 31, 2019
(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

Treasury shares

Total shareholders’equity2,191

33,719(10)

38,3342,434

Changes of items during period
Dividends of surplus

(477)

(477)

Profit attributable to ownersof parent

1,818

1,818

Purchase of treasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

-

-

1,340

-

1,340

2,434

2,191

35,060(10)

39,675

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

255

-

5

(545)

(285)

42

Total net
assets38,092

Dividends of surplus(477)

Profit attributable toowners of parent

1,818

Purchase of treasury shares
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items otherthan shareholders’ equity

-

-

(75)

-

2

(97)

(170)

0

(169)

Total changes of items during
period

(75)

-

2

(97)

(170)

0

1,170

Balance at end of current
period

180

-

7

(643)

(455)

43

39,26314

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2018
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
Decrease/increase in consumption taxes
receivable/payable
Increase (decrease) in guarantee deposits received
Other, net
SubtotalInterest and dividend income received
Interest expenses 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 sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of investment securities
Proceeds from redemption of securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries and associates
Collection of loans receivable
Proceeds from withdrawal of time deposits
Payments into time deposits
Other, net
Net cash provided by (used in) investing activities

15

For the fiscal year
ended March 31, 2019

3,050
2,440
(13)
13
(14)
(47)

2,808
2,670
(10)
5
(6)
(142)

(12)

61

(51)
100
(0)
53

(57)
104
(0)
11

(746)

(525)

1,869
(698)

287
840

71

377

(111)
(351)
5,552
51
(100)
(1,023)
4,480

(87)
(398)
5,939
57
(104)
(1,099)4,792(5,781)
8
(20)
0
30
0
–
0
1,091
(1,455)15(6,110)(3,781)0(2)0––(1,859)
0
1,340
(876)
–
(5,178)(Million yen)
For the fiscal year
ended March 31, 2018
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Purchase of treasury shares of subsidiaries
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
Cash and cash equivalents at end of period

16

For the fiscal year
ended March 31, 2019

460
(473)
200
(1,086)
(0)
(477)
(0)
(0)
(1,377)

–
(579)
2,500
(1,333)
–
(477)
–
–
109

(14)

(1)

(3,022)
23,442
20,420(276)
20,42020,143

(5) Notes to the Consolidated Financial Statements(Notes on going concern assumption)

There is no relevant information.
(Important matters that form the basis for preparing Consolidated Financial Statements)

1. Scope of consolidation(1) Numbers of consolidated subsidiaries: 14
Principal companies:
DAIHATSU DIESEL EAST JAPAN CO., LTD., DAIHATSU DIESEL NISHINIHON CO., LTD.
DAIHATSU DIESEL SHIKOKU CO., LTD., DAIHATSU DIESEL NAKANIHON CO., LTD.,DAIHATSU DIESEL (ASIA PACIFIC) PTE. LTD., DAIHATSU DIESEL (EUROPE) LTD.,DAIHATSU DIESEL (AMERICA), INC., DAIHATSU DIESEL (SHANGHAI) CO., LTD.
(2) Major non-consolidated subsidiaries:
DD TECHNICAL CO., LTD.
MD ENGINEERING CO., LTD.
Reasons for exclusion from scope of consolidation
These companies are excluded from the scope of consolidation as they are small in size and do not have material
impact on the Consolidated Financial Statements with respect to total assets, net sales, profit or loss and retained
earnings (corresponding to the percentage of shares).

2. Application of the equity method(1) Number of affiliates accounted for by the equity method: 1
OFFICINE MECCANICHE TORINO S.p.A
OFFICINE MECCANICHE TORINO S.p.A became an affiliate accounted for by the equity method as theCompany acquired its shares in the fiscal year under review.
(2) Major non-consolidated subsidiaries and affiliates not accounted for by the equity method:
DD TECHNICAL CO., LTD.
MD ENGINEERING CO., LTD.
DAIHATSU DIESEL ANQING IRONWORKS.CO., LTD.
Reason for not applying equity method:
As those companies have only minor impact on the consolidated profit (loss) and retained earnings, and theiroverall impact is not material, the investments in these companies are accounted for at cost rather than by the equity
method.

3. Accounting Standards(1) Valuation standards and methods for important assets
A. Securities(a)Held-to-maturity securities
Stated at amortized cost(b)Available-for-sale securities
Fair market values available ………… Stated at fair market value based on the market value,etc. of the closing date
(All valuation gains or losses are treated as acomponent of net assets, and cost of sales is computedby the moving-average method.)
Fair market values not available …… Stated at cost using the moving-average method
17

B. Inventories
Finished goods/work in process/raw materials
Stated at cost using the periodic average method (The book value will be written down for decreased
profitability)(2) Depreciation methods for significant depreciable assets
A. Property, plant and equipment (excluding lease assets)
They are depreciated using the straight-line method.
However, certain consolidated subsidiaries use the declining-balance method.
Those acquired on or before March 31, 2007 will be depreciated in equal amounts over the five-year
period beginning with the year following the completion of depreciation to the permissible limit.
B. Intangible assets (excluding lease assets)
They are depreciated using the straight-line method.
Software for internal use is depreciated using the straight-line method based on their estimated useful
lives (5 years).
C. Lease assets
Lease assets under finance leases wherein ownership of the leased asset does not transfer to thelesseeThese assets are depreciated using the straight-line method over respective lease periods without
residual value.
(3) Accounting standards for significant reserves
A. Allowance for doubtful accounts
In order to prepare for probable losses on collection, estimated amount uncollectible is provided for inaccordance with the historical write-off ratio in the case of ordinary receivables and provided against
estimated future losses on collection based on the detailed credit analysis in the case of doubtful accounts
and other specific receivables.
B. Provision for bonuses
To provide for payment of bonuses to employees, provision for bonuses is provided for based on theestimated amount of payments attributable to the current fiscal year.
C. Provision for directors’ bonuses
To provide for payment of bonuses to directors, provision for directors’ bonuses is provided for basedon the estimated amount of payments attributable to the current fiscal year.
D. Provision for directors’ retirement benefits
To prepare for the payment of retirement benefits to directors, the Company and certain consolidated
subsidiaries provide for the amount of year-end payments pursuant to internal rules of retirement benefits
for directors.
(4) Accounting method for retirement benefits
A. Periodic allocation of projected retirement benefits
In calculating projected benefits obligations, periodic allocation of projected retirement benefits up to
the end of current period is based on the benefit formula basis.
B. Method of amortizing actuarial differences and prior service costs
Prior service costs are recorded as expense over a certain number of years within the averageremaining years of service of the corresponding employees at the time of occurrence (10 years) using thestraight-line method.
Actuarial differences are accounted for as expenses over a certain number of years within the averageremaining years of service of the corresponding employees (10 years) using the straight-line method,18

commencing with the consolidated fiscal year following the one in which they were incurred.
(5) Significant hedge accounting
A. Hedge accounting
Deferred hedging is applied. The appropriation procedure is applied to foreign currency receivables andpayables for which forward exchange contracts have been entered.
The special accounting procedure is applied to interest rate swap contracts that qualify for hedge
accounting.
B. Hedging instruments and hedged items
Hedging instruments and hedged items for which hedge accounting was applied for the current fiscal
year are as follows:(a)
Hedging instruments: Forward foreign exchange contracts
Hedged items: Foreign currency trade receivables resulting from product export and future anticipatedtransactions denominated in foreign currency(b)
Hedging instruments: Interest rate swap contracts
Hedged items: Loans payable
C. Hedging policy
The Group conducts derivative transactions to hedge against foreign exchange and interest-rate risks inaccordance with the “Derivative Transaction Handling and Risk Management Regulations.”
D. Evaluation of hedge effectivenessFor forward exchange contract and interest rate swap, the evaluation of hedge effectiveness is omitted
because important conditions for hedge instruments and hedged items are identical, and it can be assumed
that market fluctuations will be completely eliminated at the time hedging begins and at any time
thereafter.
(6) Capital covered by Consolidated Statements of Cash Flows
Capital comprises cash on hand, deposits available for withdrawal as needed, and short-term
investments due for redemption within three months from the date of acquisition, which are easily
cashable and are subject to minimal risk of fluctuation in value.
(7) Other significant matters on presenting Consolidated Financial Statements
Accounting for consumption taxes
Consumption taxes are accounted for by the tax exclusion method.

19

(Changes in presentation methods)(Changes in connection with the application of the “Partial Amendments to Accounting Standard for Tax EffectAccounting”)
With the application of the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No. 28, February 16, 2018) from the beginning of the fiscal year under review, theCompany changed its presentation methods by presenting deferred tax assets under the investments and otherassets category and deferred tax liabilities under the non-current liabilities category.
As a result, the “deferred tax assets” of 1,853 million yen under “current assets” in the consolidated balance
sheets for the previous fiscal year is now included and presented in the “deferred tax assets” of 3,753 million
yen under “investments and other assets.”20

(Segment information, etc.)(Segment information)
1. Description of reportable segments
The reportable segments of the Company categorize the business composition of the Company with respect
to financial information and are based on the financial reporting for performance evaluation with regard toannual business plan for each business at periodical meetings of the Board of Directors.
The Company’s main business is the manufacture and sale of internal combustion engines; it also provides
products that are not related to internal combustion engines to certain affiliates, and conducts business toutilize the real estate held by the Company.
The operative conditions of internal combustion engines, which comprise the majority of the Company’sbusiness, are significantly different between marine-use and land-use, and the Company conducts
management and evaluation by categorizing production, sales, and after-sales service business activities forengines into marine-use and land-use.
As a result, the Company’s reportable segments are Marine-use engines and Land-use engines.
2. Method for calculating net sales, profit (loss), assets, liabilities, and other by reportable segment

For the fiscal year ended March 31, 2018
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Other(Notes)*1

Total

Marine-use
engines

Land-useengines

45,828

10,66656,495

3,671

60,166-60,166

-

-

-

-

-

-

-

45,828

10,66656,495

3,671

60,166-60,166

Segment income

5,080

214

5,295

370

5,665

(2,621)

3,044

Other
Depreciation

1,615

367

1,983

303

2,287

153

2,440

Total

Net sales(1) Net sales to outside
customers(2) Inter-segment net
sales or transfers
Total(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 selling, general andadministrative expenses not attributable to the reportable segments.
*3 Segment income is adjusted with operating profit on the Consolidated Statements of Income.
*4 Assets are not allocated to the business segments.

21

For the fiscal year ended March 31, 2019
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Other(Notes)*1

Total

Marine-use
engines

Land-useengines

44,4489,564

54,013

3,256

57,270-57,270

-

-

-

-

-

-

-

44,4489,564

54,013

3,256

57,270-57,270

Segment income

3,840

801

4,641

335

4,977

(2,351)

2,626

Other
Depreciation

1,799

379

2,178

331

2,510

159

2,670

Total

Net sales(1) Net sales to outside
customers(2) Inter-segment net
sales or transfers
Total(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 selling, general andadministrative expenses not attributable to the reportable segments.
*3 Segment income is adjusted with operating profit on the Consolidated Statements of Income.
*4 Assets are not allocated to the business segments.

22

(Related information)
For the fiscal year ended March 31, 2018
1. Information by product and service
This is omitted as similar information is disclosed in Segment information.
2. Information by geographical area
1) Net sales(Million yen)

Japan

Asia
34,397

Latin America
18,643

Other

1,937

Total
5,188

60,166(Note) Country and region categories are based on geographic proximity.
2) Property, plant and equipment

This is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of that stated in
the consolidated balance sheet.
3. Information by major customer
This is omitted as there were no external customers whose net sales account for more than 10% of net sales in
the consolidated statements of income.
For the fiscal year ended March 31, 2019
1. Information by product and service
This is omitted, as similar information is disclosed in Segment information.
2. Information by geographical area
1) Net sales(Million yen)

Japan

Asia
30,752Latin America
18,640

2,210

Other

Total
5,667

57,270(Note) Country and region categories are based on geographic proximity.
2) Property, plant and equipment

This is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of that stated in the
consolidated balance sheet.
3. Information by major customer
This is omitted because there were no external customers whose net sales account for more than 10% of net sales
in the consolidated statements of income.

23

(Per share information)

For the fiscal year
ended March 31, 2018

Category
Net assets per share
Basic earnings per share

For the fiscal year
ended March 31, 2019

1,195.24 yen

1,232.01 yen

65.83 yen

57.11 yen

(Note) The basis for the calculation of basic earnings per share is as follows.
For the fiscal year
ended March 31, 2018

Category

For the fiscal year
ended March 31, 2019

Basic earnings per share
Profit attributable to owners of parent (Million yen)

2,095

Amount not attributable to shareholders of common shares(Million yen)
Profit attributable to owners of parent relating to common
2,095
shares (Million yen)
Average number of shares of common shares outstanding
31,833,769 shares
during each fiscal year
(Note) Diluted earnings per share are not presented as there is no share outstanding with dilutive effect.

(Significant subsequent events)

Not applicable.

24

1,818
1,818
31,833,765 shares5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(Million yen)
As of March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Raw materials
Work in process
Prepaid expenses
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

25

As of March 31, 2019

17,900
1,542
15,167
68
9,971
144
873
1,149
(4)
46,814

17,813
1,090
15,412
96
9,685
630
870
1,036
(4)
46,631

2,832
673
3,197
36
821
4,511
6,418
18,491

4,895
1,632
6,052
351
757
4,511
110
18,311

1,368
8
1,377

1,423
7
1,431

852
2,371
1
3,409
232
(8)
6,858
26,72773,542

745
3,956
1
3,205
414
(8)
8,315
28,05874,690(Million yen)
As of March 31, 2018
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable
Accrued expenses
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Long-term guarantee deposited
Provision for retirement benefits
Provision for directors’ retirement benefits
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for advanced depreciation of non-current
assetsReserve for special depreciation
General reserve
Retained earnings brought forward
Total other retained earnings
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

26

As of March 31, 2019

849
5,889
4,859
3,375
1,213
489
1,182
2,450
347
150
5,001
536
50
1,063
27,459

968
6,164
5,361
3,375
2,764
554
322
2,611
55
379
4,824
531
45
222
28,181

7,447
1,113
10
5,356
379
111
14,41941,878

7,120
1,061
10
5,362
443
129
14,12642,307

2,434

2,434

2,150
2,150

2,150
2,150

221

221

91

234

17
24,2002,306
26,615
26,837(10)
31,412

1
25,6001,572
27,40827,630(10)
32,204251
251
31,66373,542

177
177
32,382
74,690(2) Non-consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
State subsidy
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on valuation of shares of subsidiaries andassociates
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit27

For the fiscal year
ended March 31, 201952,862
43,966
8,895
7,539
1,356

49,75541,741
8,013
7,302
711

1,030
187
1,217

1,079
392
1,472

97
96
194
2,379

102
382
484
1,698

0
–
0

0
232
233

51

9

–

299

0
51
2,328
431
(52)
379
1,949

4
313
1,618
111
236
348
1,270

(3) Non-consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2018
(Million yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning ofcurrent period
Changes of items during
periodCapital
stock

Legal
capitalsurplus

Total capitalsurplusLegalretainedearnings

2,434

2,150

2,150

221

Reserve foradvanced
Reserve fordepreciation
specialof nondepreciation
current
assets
102

33

Generalreserve

Retainedearnings
brought
forwardTotal
retainedearnings

22,7002,308

25,365

(477)

(477)

(1,500)-15-

Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve foradvanced depreciationof non-current assets
Reversal of reserve foradvanced depreciationof non-current assets

1,500
(15)

-

(10)

ProfitPurchase of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period

1,949

1,949

-

-

-

(10)

(15)

1,500

(2)

1,471

2,434

2,150

2,150

221

91

17

24,2002,306

26,837

Treasuryshares(10)

Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve foradvanced depreciationof non-current assets
Reversal of reserve foradvanced depreciationof non-current assets
ProfitPurchase of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period--Shareholders’ equity

Balance at beginning ofcurrent period
Changes of items during
period10(0)Valuation and translation adjustments

Valuation
Total
difference onshareholders’ available-forequity
sale
securities
29,940245

Deferred
gains orlosses onhedgesTotalvaluation andtranslation
adjustments

Total net
assets(5)240

30,180

(477)

(477)

-

-

-

-

-

-

-

-

1,949

1,949

(0)

(0)
6

5

11

11

(0)

1,471

6

5

11

1,483

(10)

31,412

251

-

251

31,66328

For the fiscal year ended March 31, 2019
(Million yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning ofcurrent period
Changes of items during
periodCapital
stock

Legal
capitalsurplus

Total capitalsurplusLegalretainedearnings

2,434

2,150

2,150

221

Reserve foradvanced
Reserve fordepreciation
specialof nondepreciation
current
assetsGeneralreserve

Retainedearnings
brought
forwardTotal
retainedearnings

24,2002,306

26,837

(477)

(477)

(1,400)

-

15

-

161

(161)

-

(19)

19

-

1,270

1,270

91

17

Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve foradvanced depreciationof non-current assets
Reversal of reserve foradvanced depreciationof non-current assets

1,400
(15)

ProfitPurchase of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period

-

-

-

-

142

(15)

1,400

(733)

792

2,434

2,150

2,150

221

234

1

25,600

1,572

27,630Shareholders’ equity

Valuation
Total
difference onshareholders’ available-forequity
sale
securities

TreasurysharesBalance at beginning ofcurrent period
Changes of items during
period(10)

Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve foradvanced depreciationof non-current assets
Reversal of reserve foradvanced depreciationof non-current assets
ProfitPurchase of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
periodValuation and translation adjustments

31,412

Deferred
gains orlosses onhedgesTotalvaluation andtranslation
adjustments

Total net
assets-251

31,663

251

(477)

(477)

-

-

-

-

-

-

-

-

1,270

1,270

-

(74)

-

(74)

(74)

-

792

(74)

-

(74)

718

(10)

32,204

177

-

177

32,38229

6．Other(1) Status of Production, Orders Received, and Sales (April 1, 2018 to March 31, 2019)1) Production
Production by segment for the current fiscal year is as follows:(Million yen)Segment

VolumeAmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines

1,099,309

44,448(3.0)

Land-use engines

90,6659,564(10.3)-

2,616(13.7)

56,629

(4.9)

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 current fiscal year are as follows:(Million yen)Orders received
Segment

VolumeAmountHorsepower

Order backlogs
Year-on-yearchange%Horsepower

15.3

1,171,768(12.2)

116,440(14.8)-

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

1,048,503

Land-use engines

99,253

Other

Total

46,689[25,012]
9,488
[839]
2,541
[-]
58,719[25,851]

8.2

28,417[8,973]
5,253
[288]
481
[-]
34,153[9,262]8.6(1.4)(13.4)
6.5(Notes)*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.

303) Sales results
Sales by segment for the current fiscal year are as follows:
Segment

VolumeHorsepower

Amount%(Million yen)
Year-on-year change
%

57.4

(3.0)

10.7

(10.3)-(11.3)

46.3

(4.8)

Export ratio

Internal combustion engine
Marine-use engines

1,099,309

Land-use engines

90,665

Other44,448[25,497]
9,564[1,020]3,256[-]
57,270[26,518]

Total(Notes)*1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (70.4%), Europe (17.3%), Latin America (8.3%), North America (3.4%), Others (0.6%)*3 The “Other” segment includes precision parts-related (1,441 million yen), industrial machinery-related (1,174 million yen)
and real estate leasing-related (640 million yen).
*4 The figures above do not include consumption taxes.

(2) Changes in Directors and Corporate Auditors (Scheduled on June 27, 2019)
1. Changes in Representatives
Retiring Representative Director:
Chairman
Newly Promoted Director:
Vice President and Representative
DirectorTakeshi Harada (currently Chairman and Representative Director)
Yoshinobu Hotta (currently Director and Managing Executive Officer)

2. Candidates for Newly Appointed Directors:
Yoichi Hayata (currently Managing Executive Officer)
Hideki Asada (currently Managing Executive Officer)
Takashi Mizushina (currently Managing Executive Officer)
Shinichi Nanba (currently Executive Chief Engineer, Powertrain R&DGroup, DNGA Business Unit, Daihatsu Motor Co.,Ltd.)
3. Retiring Directors:
Kazutoshi Sato (currently Director and Senior Managing Executive
Officer)Yuichi Uemura (currently Director and Managing Executive Officer)
Takashi Saito (currently Director and Managing Executive Officer)
Takashi Iida (currently Director and Managing Executive Officer)
Hitoshi Nakano (currently Director and Executive Officer)
31

(Reference)
New Management Team (Scheduled on June 27, 2019)(Directors)
ChairmanPresident and Representative
Director
Vice President and Representative
Director
Vice President and Representative
Director
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Outside Director
Outside Director(Staturory Auditors)
Standing Statutory Auditor
Outside Statutory Auditor
Outside Statutory Auditor(Executive Officers)
Managing Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Takeshi Harada
Shigeki Kinoshita
Osamu Goda
Yoshinobu Hotta
Isamu Teraoka
Yoichi Hayata
Hideki Asada
Takashi Mizushina
Shinichi Nanba
Tamon Tsuda (currently Certified Public Accountant)Kazuo Komatsu (currently Attorney-at-law, Kitahama Partners, Foreign
Law Joint Enterprise)

Atsumi Masada
Noriyoshi Matsushita (currently Director, Daihatsu Motor Co.,Ltd.)Norihide Bessyo (currenyly Standing Statuory Auditor, Daihatsu Motor
Co.,Ltd.)

Yuichi Uemura
Tetsuya Bando
Toshiki Sanaga
Takashi Hanamure
Shuji Kawano
Tomohiro Miyoshi
Isao Wakamiya
Masaki Hama

32