Consolidated Financial Results
for the Three Months Ended June 30, 2018
[Japanese GAAP]
July 27, 2018
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 filing quarterly securities report: August 9, 2018
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, 2018 (April 1, 2018 to June 30, 2018)(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%
June 30, 201812,616 (17.8)
215 (58.2)
273 (52.7)
171 (56.8)
June 30, 201715,351 19.0515(0.1)
577
46.8397
31.0(Note) Comprehensive income: Three months ended June 30, 2018: 80 million yen [(82.3)%]
Three months ended June 30, 2017: 454 million yen [203.4%]
Basic earnings per share

Three months ended
June 30, 2018
June 30, 2017(2) Consolidated Financial Position
Total assets

Diluted earnings per share
YenYen5.40
12.50-Net assets

Million yen

Equity ratio

Million yen

As of June 30, 2018
78,949As of March 31, 2018
80,969(Reference) Equity: As of June 30, 2018: 37,653 million yen
As of March 31, 2018: 38,049 million yen

37,69438,092%47.7
47.0

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen
Yen
Yen
Fiscal year ended
March 31, 2018
0.00
Fiscal year ending
March 31, 2019
Fiscal year ending
March 31, 2019
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, 2019 (April 1, 2018 toMarch 31, 2019)(% 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
01,500

First half
26,000 (12.0)200(86.2)
200 (87.0)
Full year
57,000 (5.3)
2,500(17.9)
2,400 (22.7)(Note) Revision to the financial results forecast announced most recently: None

Basic earnings
per share%(100.0)(28.4)

Yen
0.00
47.09

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resultingin 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, 2018: 31,850,000 shares
March 31, 2018: 31,850,000 shares2) Total number of treasury shares at the end of the period:
June 30, 2018: 16,235 shares
March 31, 2018: 16,235 shares
3) Average number of shares during the period:
Three months ended June 30, 2018: 31,833,765 shares
Three months ended June 30, 2017: 31,833,778 shares* These quarterly financial results are outside the scope of quarterly review procedures conducted by a certified
public accountant or audit corporation.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecasts and other forward-looking statements herein are based on information 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, 2018 to June 30, 2018), the Japanese economy, due toeconomic policies brought in by the government, saw an increase in capital investment, improvement in theemployment environment and the continuation of a moderate recovery trend, but the future outlook remained
uncertain, with the effects of the trade policies of the U.S. Government and East Asian geopolitical risk causing
concern.
Under such a corporate environment, the Company advanced active business expansion, but consolidated
net sales decreased by 17.8% year-on-year to 12,616 million yen. In terms of profit, operating profit decreased
by 58.2% year-on-year to 215 million yen, ordinary profit decreased by 52.7% year-on-year to 273 million yen,and profit attributable to owners of parent decreased by 56.8% year-on-year to 171 million yen.
Performance by business segment of the Company and the consolidated Group are as follows.
<Internal combustion engines>
1. Marine-use
Due mainly to the deterioration of engine profitability, in addition to decreased sales of engines mainly formainstay auxiliary power generators, net sales decreased by 16.8% year-on-year to 10,742 million yen, andsegment income decreased by 32.2% year-on-year to 834 million yen.
2. Land-use
Although unit sales of engines decreased, net sales decreased by 31.8% year-on-year to 1,065 million yen
and segment loss amounted to 69 million yen (segment loss of 172 million yen in the previous correspondingperiod) due mainly to an increase in maintenance-related sales.
Consequently, net sales for the segment decreased by 18.4% year-on-year to 11,808 million yen, andsegment income decreased by 27.8% year-on-year to 764 million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, due to a decrease in unit sales, both net sales and segment incomedecreased.
2. Real estate leasing-related
In real estate leasing-related, although net sales increased slightly, segment income decreased slightly.
3. Electricity sales-related
In electricity sales-related, net sales decreased slightly and segment income decreased.
4. Precision parts-related
In precision parts-related, although net sales increased slightly, segment loss was posted.
Consequently, net sales for the segment decreased by 7.4% year-on-year to 807 million yen, and segment
income decreased by 47.8% year-on-year to 57 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 by
1,737 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. Meanwhile, inventories increased by 450 million yen compared with the endof the previous fiscal year. As a result, total assets as of June 30, 2018 amounted to 78,949 million yen, adecrease of 2,019 million yen compared with the end of the previous fiscal year.
In liabilities, notes and accounts payable - trade and electronically recorded obligations - operating in total
decreased by 174 million yen from the end of the previous fiscal year. Furthermore, due to scheduled2repayment, short-term loans payable and long-term loans payable in total decreased by 279 million yen. Inaddition, income taxes payable decreased by 591 million yen due to payment of income taxes. As a result, totalliabilities decreased by 1,622 million yen from the end of the previous fiscal year to 41,254 million yen.
In net assets, retained earnings decreased by 305 million yen due mainly to payment of cash dividends. As aresult, total net assets decreased by 397 million yen from the end of the previous fiscal year to 37,694 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, 2019, no revisions havebeen made to the forecast announced on April 26, 2018.
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, 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

4

As of June 30, 2018

21,676
16,575
10,5571,572(13)50,36821,28914,837
11,008830(11)47,953

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

10,468
3,663
5,088
4,144
873
24,237
1,500

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

1,028
1
3,781
509
(63)
5,257
30,99578,949(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 liabilitiesLong-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

5As of June 30, 2018

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

6,762
4,873
6,543
536
119
248
14
2,737
3,332
25,169

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

5,418
1,202
457
6,448
168
2,390
16,08541,2542,434
2,191
33,719(10)
38,3342,434
2,191
33,414(10)
38,029255―
5(545)(285)
42
38,09280,969234(1)
9(618)(375)
41
37,69478,949(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, 2017
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
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Other
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

6For the three months
ended June 30, 201815,351
12,114
3,237

12,616
9,690
2,925

2,067
653
2,721
515

2,103
606
2,710
215

128228328910213624
1109525429577

24
1337273

00002―2575
65112
177
398039744926477
1593170(1)
171

Quarterly Consolidated Statements of Comprehensive Income
For the three months ended June 30(Million yen)
For the three months
ended June 30, 2017
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 incomeComprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests

7

For the three months
ended June 30, 2018
398

170

244324(21)
(1)
4(72)

55(89)

454

80

453

810(1)

(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, 2018 (from April 1, 2018 to June 30, 2018)
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, 2017 (from April 1, 2017 to June 30, 2017)
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

12,916

1,562

14,479872

15,351-

15,351

Inter-segment netsales 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.

8For the three months ended June 30, 2018 (from April 1, 2018 to June 30, 2018)
Reportable segment
Marine-use
engines

Land-useengines

Other(Notes)*1

Total

Adjustment(Notes) *2

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

Net sales
Net sales to outside
customers

10,742

1,065

11,808807

12,616-

12,616

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

Total

10,742

1,065

11,808807

12,616-

12,616

Segment income (loss)834(69)

764

57

822(606)

215(Notes)*1 The “Other” category is a business segment that is not included in reportable segments, and includes the industrialmachinery-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, 2018 (from April 1, 2018 to June 30, 2018)
1) Production
Production by segment for the three months ended June 30, 2018 is as follows:(Million yen)Segment

VolumeAmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines

270,608

10,742(16.8)

Land-use engines

1,686

1,065

(31.8)

-644

(9.4)

12,452(18.0)

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, 2018 are as follows:(Million yen)Orders received
Segment

VolumeAmountHorsepower

Order backlogs
Year-on-yearchange%Horsepower

9.8

1,219,071

23.2

166,698(24.5)-VolumeAmountYear-on-yearchange%Internal combustion engine
Marine-use engines

267,105

Land-use engines

60,532OtherTotal(Notes)11,319[5,992]
2,765
[125]
623
[-]
14,708[6,117]9.9

26,753[9,869]
7,030
[490]
535
[-]
34,319[10,360](7.4)
19.6(25.7)(3.3)*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, 2018 are as follows:
Segment

VolumeHorsepower

AmountExport ratio%(Million yen)
Year-on-year change%

Internal combustion engine
Marine-use engines

270,608

10,74252.0(16.8)[5,582]Land-use engines
1,686
1,065
9.8
(31.8)[104]
Other807(7.4)[-]
12,616
Total
45.1(17.8)[5,686](Notes) *1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (69.2%), Europe (17.4%), Latin America (10.5%), North America (2.2%), Others (0.7%)*3 The “Other” segment includes precision parts-related (385 million yen), industrial machinery-related (259 millionyen) and real estate leasing-related (163 million yen).
*4 The figures above do not include consumption taxes.

11