Consolidated Financial Results
for the Three Months Ended June 30, 2017
[Japanese GAAP]
July 26, 2017
Company name: Daihatsu Diesel Mfg. Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 6023
URL: http://www.dhtd.co.jp/
Representative: Shigeki Kinoshita, President
Contact: Yuichi Uemura, Managing director
Phone: +81-6-6454-2331
Scheduled date of filing quarterly securities report: August 9, 2017
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2017 (April 1, 2017 to June 30, 2017)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
15,351
19.0
515
(0.1)
577
46.8
397
31.0
June 30, 2017
June 30, 2016
12,905(0.1)
516 (60.9)
393 (69.5)
303 (66.8)(Note) Comprehensive income: Three months ended June 30, 2017: 454 million yen [203.4%]
Three months ended June 30, 2016: 149 million yen [(83.9)%]
Basic earnings per share

Three months ended
June 30, 2017
June 30, 2016
(2) Consolidated Financial Position
Total assets

Diluted earnings per share
YenYen12.50
9.54-Net assets

Million yen

Equity ratio

Million yen

As of June 30, 2017
79,031
As of March 31, 2017
78,981(Reference) Equity: As of June 30, 2017: 36,391 million yen
As of March 31, 2017: 36,414 million yen

36,436
36,460

%

46.0
46.1

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen
Yen
Yen
Fiscal year ended
March 31, 2017
0.00
Fiscal year ending
March 31, 2018
Fiscal year ending
March 31, 2018
0.00
(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, 2018 (April 1, 2017 toMarch 31, 2018)(% indicates changes from the previous corresponding period.)
Net sales
Million yen

Operating profit%

Million yen

Ordinary profit% Million yen%

Profit attributableto owners of parent
Million yen

First half
30,000 6.6
400 (63.6)
300 (69.9)
Full year
63,000 6.9
2,500 (28.5)
2,400 (30.3)(Note) Revision to the financial results forecast announced most recently: None

Basic earnings
per share%Yen

100 (85.9)
1,500 (35.3)

3.13
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: No
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):
June 30, 2017: 31,850,000 shares
March 31, 2017: 31,850,000 shares2) Total number of treasury shares at the end of the period:
June 30, 2017: 16,235 shares
March 31, 2017: 16,170 shares
3) Average number of shares during the period:
Three months ended June 30, 2017: 31,833,778 shares
Three months ended June 30, 2016: 31,833,830 shares* These quarterly financial results are outside the scope of quarterly review procedures.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecasts and other forward-looking statements herein are based on information andcertain assumptions deemed reasonable as of the date of publication of this document. Actual results may differ
significantly from these forecasts due to a wide range of factors. Please refer to “Explanation of Consolidated
Financial Results Forecast and Other Forward-looking Information” on page 3 of the attached material for theassumptions the financial results forecasts are based on, and notes on their use.

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review........................................... 2(1) Explanation of Operating Results ..................................................................................................................... 2(2) Explanation of Financial Position ..................................................................................................................... 2(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ................. 3
2. 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) Notes to the Quarterly Consolidated Financial Statements ............................................................................... 8(Notes on going concern assumption) ................................................................................................................ 8(Notes in the case of significant changes in shareholders’ equity) ..................................................................... 8(Segment information, etc.) ................................................................................................................................ 8
3. Supplementary Information .................................................................................................................................. 10(1) Status of Production, Orders Received, and Sales .......................................................................................... 101

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the three months under review (from April 1, 2017 to June 30, 2017), the Japanese economy was ona moderate recovery track against the backdrop of the government’s economic policies, but factors such asconcerns over an economic deceleration in emerging markets, policy trends in the United States and politicalsituations in Europe, as well as heightened geopolitical risks, led to conditions for which the outlook remained
uncertain.
Under such a corporate environment, as a result of active business expansion, consolidated net sales
increased by 19.0% year-on-year to 15,351 million yen. In terms of profit, operating profit decreased by 0.1%
year-on-year to 515 million yen, ordinary profit increased by 46.8% year-on-year to 577 million yen, and profit
attributable to owners of parent increased by 31.0% year-on-year to 397 million yen.
Performance by business segment of the Company and the consolidated Group are as follows.
<Internal combustion engines>
1. Marine-use
Despite a decrease in maintenance-related sales, the ratio of large engines mainly for mainstay auxiliary
power generators increased, and owing to the effects of a weaker yen, net sales increased by 17.4% year-onyear to 12,916 million yen, and segment income increased by 21.7% year-on-year to 1,231 million yen.
2. Land-use
Although unit sales increased, net sales increased by 45.0% year-on-year to 1,562 million yen, segment loss
amounted to 172 million yen (segment income of 23 million yen in the previous corresponding period) due
mainly to a decrease in maintenance-related sales.
Consequently, net sales for the segment increased by 19.8% year-on-year to 14,479 million yen, andsegment income increased by 2.2% year-on-year to 1,059 million yen.
<Other>
1. Industrial machinery-relatedIn the aluminum wheel division, due to an increase in unit sales, both net sales and segment incomeincreased.
2. Real estate leasing-related
In real estate leasing-related, both net sales and segment income decreased.
3. Electricity sales-related
In electricity sales-related, both net sales and segment income decreased slightly.
4. Precision parts-related
In precision parts-related, both net sales and segment income increased.
Consequently, net sales for the segment increased by 6.1% year-on-year to 872 million yen, and segment
income decreased by 0.0% year-on-year to 109 million yen.

(2) Explanation of Financial Position
In assets as of the end of the first quarter under review, notes and accounts receivable - trade decreased by839 million yen from the end of the previous fiscal year due to a progress in collection of trade receivables atthe end of the previous fiscal year. In addition, inventories decreased by 756 million yen compared with the endof the previous fiscal year. Meanwhile, cash and deposits increased by 2,639 million yen. As a result, total
assets as of June 30, 2017 amounted to 79,031 million yen, an increase of 49 million yen compared with theend of the previous fiscal year.
In liabilities, notes and accounts payable - trade and electronically recorded obligations - operating in total
2increased by 567 million yen from the end of the previous fiscal year. Meanwhile, due to scheduled repayment,
short-term loans payable and long-term loans payable in total decreased by 259 million yen. As a result, total
liabilities increased by 72 million yen from the end of the previous fiscal year to 42,594 million yen.
In net assets, retained earnings decreased by 79 million yen due mainly to payment of cash dividends. As aresult, total net assets decreased by 23 million yen from the end of the previous fiscal year to 36,436 millionyen.

(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, 2018, no revisions havebeen made to the forecast announced on April 28, 2017.
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 inthe future.

3

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

As of June 30, 201724,302
15,791
12,426
1,852
1,645
(75)
55,942

26,942
14,952
11,669
1,755
786
(76)
56,029

6,818
4,045
5,054
1,643
1,001
18,563
1,026

6,731
3,888
5,054
1,961
930
18,565
1,056

1,09421,846
520(13)
3,449
23,03978,981

1,100
2
1,807
480
(11)
3,379
23,001
79,031

(Million yen)
As of March 31, 2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Accrued expenses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of June 30, 2017

7,398
5,063
3,991
381
773684
66
2,378
2,745
23,483

7,425
5,604
4,001
397
144
260
16
2,415
3,734
24,000

8,686
824
473
6,379
165
2,509
19,03742,521

8,417
863
381
6,353
166
2,412
18,59342,5942,434
2,190
32,101(10)
36,7162,434
2,190
32,021(10)
36,636248(5)6(550)(301)
45
36,46078,981272(0)9(526)(245)
45
36,43679,031

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
For the three months ended June 30(Million yen)
For the three months
ended June 30, 2016
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
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6

For the three months
ended June 30, 201712,9059,775
3,130

15,351
12,114
3,237

1,984
629
2,613
516

2,067
653
2,721
515

27−
25
1
946

128
228
328
91

28
137
3168
393

25−
429
577

0
69
690−099452
9157148
304
0303

22575
65112
1773980397

Quarterly Consolidated Statements of Comprehensive Income
For the three months ended June 30(Million yen)
For the three months
ended June 30, 2016
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 ofparent
Comprehensive income attributable to non-controllinginterests

7For the three months
ended June 30, 2017304

398(47)2(62)(46)

244324(154)

55

149

454

149

453

00

(3) 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 three months ended June 30, 2017 (from April 1, 2017 to June 30, 2017)
There is no relevant information.

(Segment information, etc.)
1. Information on net sales and profit (loss) by reportable segment
For the three months ended June 30, 2016 (from April 1, 2016 to June 30, 2016)

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

11,006

1,077

12,084821

12,905-

12,905Inter-segment net
sales or transfers-------

11,006

1,077

12,084821

12,905-

12,905

1,012

23

1,036

109

1,146(629)

516

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

8For the three months ended June 30, 2017 (from April 1, 2017 to June 30, 2017)
Reportable segment
Marine-useengines

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

12,916

1,562

14,479872

15,351-

15,351

Inter-segment net
sales or transfers-------

Total

12,916

1,562

14,479872

15,351-

15,351

Segment income (loss)

1,231(172)

1,059

109

1,169

(653)

515

(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.

93. Supplementary Information(1) Status of Production, Orders Received, and Sales
For the three months ended June 30, 2017 (from April 1, 2017 to June 30, 2017)
1) Production
Production by segment for the three months ended June 30, 2017 is as follows:(Million yen)Segment

VolumeAmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines

445,380

12,916

17.4

Land-use engines

20,436

1,562

45.0

-711

7.8

15,19019.2

OtherTotal(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 three months ended June 30, 2017 are as follows:(Million yen)Orders received
Segment

VolumeAmountHorsepower

Order backlogs
Year-on-yearchange%Horsepower(18.5)

1,508,153(43.3)

101,185

10.3-

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

256,059

Land-use engines

28,563

Other

Total

(Notes)

10,308[4,522]
2,245
[397]
826
[-]
13,380[4,920](22.9)

28,889[12,458]
5,877
[516]
719
[-]
35,486[12,975](26.6)(11.2)
23.4(23.8)*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.

103) Sales results
Sales by segment for the three months ended June 30, 2017 are as follows:Segment

VolumeHorsepower

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

445,380

12,916
66.3
17.4[8,567]Land-use engines
20,436
1,562
6.1
45.0
[95]
Other872
6.1[-]
15,351
Total
56.4
19.0
[8,663](Notes) *1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (81.2%), Europe (11.8%), Latin America (5.6%), North America (1.0%), Others (0.4%)*3 The “Other” segment includes precision parts-related (377 million yen), industrial machinery-related (333 millionyen) and real estate leasing-related (160 million yen).
*4 The figures above do not include consumption taxes.

11