Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2022
(Based on Japanese GAAP)
November 11, 2022
Company name:DAIHO CORPORATION
Stock exchange listing: Tokyo
Stock code:
Representative:

1822
CEOURLhttps://www.daiho.co.jp

Inquiries:

General Manager, Accounting Department,
Administration Division

Kakue Morishita
Yoshinori Umehara

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 14, 2022–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

No
Yes

TEL

03-3297-7000(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet salesOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2022
69,843
2.6
2,262
21.2
2,517
31.2
1,475
17.0
Six months ended September 30, 2021
68,053(9.3)
1,867 (25.6)
1,918 (23.8)
1,260 (20.8)
Note: Comprehensive income

Six months ended September 30, 2022
Six months ended September 30, 2021

¥1,658 million [37.3%]¥1,207 million [(34.9)%]

Earnings per share

Diluted earnings per share

Yen
83.80
72.27Six months ended September 30, 2022
Six months ended September 30, 2021

Yen
82.29
67.96

(2) Consolidated financial position
Total assets
As of September 30, 2022
As of March 31, 2022
Reference: Equity

Net assets

Millions of yen
160,776
169,621

As of September 30, 2022
As of March 31, 2022

Equity ratio

Millions of yen
71,84974,493

%
44.0
43.3

¥70,729 million¥73,381 million

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-endFiscal year-end

Yen––Yen––Yen–Yen
243.00

Yen243.00–230.00

230.00Year ending March 31, 2023 (Forecast)
Note: Revisions to the cash dividend forecasts most recently announced: None1Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Full year

Millions of yen
165,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
5.4
8,600(2.9)
8,600(7.7)
5,700(4.8)
326.60Note: Revisions to the financial results forecasts most recently announced: None
4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022

18,083,163 shares As of March 31, 2022

18,433,163 shares

Number of treasury shares at the end of the period
As of September 30, 2022

485,992 shares As of March 31, 2022

980,528 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

17,605,001 shares Six months ended September 30, 2021

17,446,564 shares

Note: The Company has introduced a share distribution trust system for delivering shares to the Company’s Directors, etc. via a trust. TheCompany’s shares that are owned by the trust (78,500 shares) are included in “number of treasury shares at the end of the period,” and incalculating and presenting “average number of shares outstanding during the period,” the Company has considered the shares owned by said trust
to be included.
* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the consolidated forecasts stated in these materials, are based on information currently available to theCompany and certain assumptions deemed reasonable. Results may differ materially from the consolidated forecasts due to various factors.

2

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed

19,78037,514

100,889

76,960301

258

Costs on construction contracts in progress
Short-term loans receivable

2,303
2

3,787
2

Advances paid
Other

13,367
3,528

11,758
1,604

(6)

(2)

140,167

131,883

10,88010,809

8,053
8,662

7,401
8,623

Leased assets
Construction in progress

145
214

170
403

Accumulated depreciation(10,804)(10,479)

Total property, plant and equipment

17,151

16,930231

228

construction contracts and other
Electronically recorded monetary claims - operating

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, vehicles, tools, furniture and fixtures
Land

Intangible assets
Investments and other assets
Investment securities

8,044

8,762

Long-term loans receivable
Deferred tax assets

2,659
850

1,838
595

Other
Allowance for doubtful accounts

623
(106)

623
(86)

Total investments and other assets

12,071

11,733

Total non-current assets
Total assets

329,454

28,892

169,621

160,776(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts
and other
Electronically recorded obligations - operating

34,991

27,108

10,409

9,683

Short-term borrowings
Current portion of long-term borrowings

2,950
3,150

950
–

Income taxes payable
Advances received on construction contracts in progress

558
9,959

1,068
12,848Deposits received
Provision for warranties for completed construction

21,174687

21,223693Provision for bonuses
Provision for loss on construction contracts

821
855

867
672

Other

888

454

86,44575,570

1,463
–

47
6,000

Deferred tax liabilities
Provision for share awards

8162

2157

Retirement benefit liability
Other

6,267
781

6,353
795

Total non-current liabilities

8,683

13,356

95,12888,926

Shareholders' equity
Share capital

10,54930,736

Capital surplus
Retained earnings

9,059
56,753

21,746
19,464

Treasury shares(3,725)(2,110)Total shareholders' equity

72,636

69,837

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

747(31)885(37)

Remeasurements of defined benefit plans

28

43

Total accumulated other comprehensive income

744

891

266

241

Total current liabilities
Non-current liabilities
Convertible-bond-type bonds with share acquisition rights
Long-term borrowings

Total liabilities
Net assets

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4845

878

74,493

71,849169,621

160,776

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales

68,053
63,132

69,84364,181Gross profit

4,921

5,662

Selling, general and administrative expenses

3,054

3,399

Operating profit

1,867

2,262

Interest income
Dividend income

32
69

3171

Foreign exchange gains
Other3039624
81

Total non-operating income

172808Non-operating income

Non-operating expenses
Interest expenses

2530

Guarantee commission
Commission expenses

473740474

Other

107

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets

120553

1,918

2,517

241

42

Other

18–

Total extraordinary income

259

42

108
4

911–
0

10

Extraordinary losses
Loss on sale and retirement of non-current assets
Loss on litigation
Loss on valuation of investment securities
Other

113

22

Profit before income taxes

Total extraordinary losses

2,064

2,537

Income taxes - current
Income taxes - deferred

548
214842
183

762

1,025

1,3011,511

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

540

36

1,260

1,475

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2021

September 30, 2022

1,301

1,511

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(124)
6137
(6)

Remeasurements of defined benefit plans, net of tax

2415(94)

146

Comprehensive income

Total other comprehensive income

1,2071,658

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,166

1,621

4036

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2021

September 30, 2022

2,064

2,537

Depreciation
Loss on litigation

561
4489
11

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for warranties for completed

15(23)(619)

55345Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for share awards

114
36

100
34

Increase (decrease) in provision for loss on construction
contracts

(36)

(182)

Loss (gain) on sale and retirement of non-current assets
Interest and dividend income

(133)
(101)

(33)
(102)

Interest expenses
Foreign exchange losses (gains)

25(55)

30(264)

Decrease (increase) in trade receivables
Decrease (increase) in inventories

16,997(648)23,973(1,413)

Increase (decrease) in trade payables
Increase (decrease) in advances received on construction(9,670)(8,609)

3,836

2,888

2,919

2,932

Increase (decrease) in other liabilities
Other loss (gain)

2,230
33

(213)
483

Subtotal

17,627

22,690

101
(25)

107
(32)

(2,057)–(532)
614

construction
Increase (decrease) in provision for bonuses

contracts in progress
Decrease (increase) in other assets

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Payments for loss on litigation

(7)

(5)

15,637

22,841(10)
10(10)
10(1,072)
251

(340)
69

Payments for retirement of property, plant and equipment
Purchase of intangible assets

(7)
(20)

(0)
(24)

Purchase of investment securities
Proceeds from sale of investment securities(147)
29(537)–Proceeds from refund of investment securities
Net decrease (increase) in short-term loans receivable

0122
9Long-term loan advances
Proceeds from collection of long-term loans receivable(45)
1–820(1,008)

19

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Net cash provided by (used in) investing activities

7(Millions of yen)

Cash flows from financing activities
Increase (decrease) in short-term borrowings

Six months ended

Six months ended

September 30, 2021

September 30, 2022

(7,000)(2,000)––5,878(3,150)

Proceeds from issuance of shares
Purchase of treasury shares–(4,767)40,188(42,010)

Dividends paid
Dividends paid to non-controlling interests(1,985)(2)(4,251)
(3)

(3)
(42)

(2)
(47)

(13,801)(5,399)55

251

Net increase (decrease) in cash and cash equivalents

884

17,712

Cash and cash equivalents at beginning of period

28,20319,751

Cash and cash equivalents at end of period

29,087

37,464

Proceeds from long-term borrowings
Repayments of long-term borrowings

Repayments of lease liabilities
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

8