Consolidated Financial Results
for the Fiscal Year Ended March 31, 2021
[Japanese GAAP]
April 28, 2021
Company name: Daihatsu Diesel Mfg. Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 6023
URL: http://www.dhtd.co.jp
Representative: Yoshinobu Hotta, President
Contact: Takashi Mizushina, Director and Managing Executive Officer
Phone: +81-6-6454-2331
Scheduled date of Annual General Meeting of Shareholders: June 29, 2021
Scheduled date of commencing dividend payments: June 30, 2021
Scheduled date of filing annual securities report: June 29, 2021
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, 2021 (April 1, 2020 to March 31, 2021)(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, 2021
56,745(5.6)
994 (62.8)
1,149 (60.6)
712 (64.3)
March 31, 2020
60,087
4.9
2,674
1.9
2,915
13.2
1,996
9.8
(Note) Comprehensive income: Fiscal year ended March 31, 2021: 991 million yen [(47.2)%]
Fiscal year ended March 31, 2020: 1,878 million yen [14.0%]
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, 2021
22.43
1.7
1.4
1.8
March 31, 2020
62.80
5.0
3.5
4.5
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2021: 43 million yen
Fiscal year ended March 31, 2020: (23) million yen(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

41,21440,64551.2
47.5

1,296.22
1,276.43

As of March 31, 2021
80,381
As of March 31, 2020
85,558(Reference) Equity: As of March 31, 2021: 41,166 million yen
As of March 31, 2020: 40,598 million yen(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2021
March 31, 2020

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

3,035
1,614

(1,847)(1,137)(2,310)(77)

19,50920,495

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2020
March 31, 2021
Fiscal year ending
March 31, 2022
(Forecast)

Total

Yen

Yen

Yen

Yen

-

0.00
0.00

-

15.00
15.00

15.00
15.00

-

0.00

-

15.00

15.00

Total
dividends

Payoutratio(consolidated)

Yen Million yen

477
476

Dividends
to netassets(consolidated)

%

%

23.9
66.9

1.2
1.2

47.8

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 toMarch 31, 2022)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Operating profit
Ordinary profit
owners of parent
per share

Net salesFirst half
Full year

Million yen

24,00055,000% Million yen

(4.5)
(3.1)

0
1,300

% Million yen(100.0)30.7% Million yen

0 (100.0)
1,200
4.4

%

0 (100.0)
1,000
40.4

Yen

0.00
31.39

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges 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, 2021: 31,850,000 shares
March 31, 2020: 31,850,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2021: 90,935 shares
March 31, 2020: 43,535 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2021: 31,740,671 sharesFiscal Year ended March 31, 2020: 31,790,050 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 toMarch 31, 2021)(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%
49,409(1,421)March 31, 2021
(5.4)
384 (76.1)
725 (51.1)
March 31, 2020
52,2395.0
32(95.5)
1,609
(5.3)
1,484
16.9
Basic earnings per share
Fiscal year ended
March 31, 2021
March 31, 2020

Diluted earnings per share
Yen

Yen

22.86
46.70

-

(2) Non-consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

As of March 31, 2021
73,12033,66677,87633,348
As of March 31, 2020
(Reference) Equity: As of March 31, 2021: 33,666 million yen
As of March 31, 2020: 33,348 million yen

46.0
42.8

1,060.05
1,048.46

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 toMarch 31, 2022)(% indicates changes from the previous corresponding period.)
Net salesFirst half
Full year

Million yen

21,00048,000

%

(3.7)
(2.9)

Million yen

800
1,200

Basic earnings
per share

ProfitOrdinary profit
%

22.3
212.2

Million yen

1,100
1,500

%

48.2
106.7

Yen

34.53
47.09

* 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 and certain
assumptions deemed reasonable as of the date of publication of this document. Actual results may differ
significantly from these forecasts due to a wide range of factors. Please refer to “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 Monday, May 31, 2021. 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........................................................................................................................... 4(3) Dividend Policy ................................................................................................................................................ 4(4) Business and Other Risks.................................................................................................................................. 4
2. Overview of the Corporate Group .......................................................................................................................... 7
3. Basic Stance Concerning Choice of Accounting Standards.................................................................................... 9
4. Consolidated Financial Statements and Primary Notes ........................................................................................ 10(1) Consolidated Balance Sheets .......................................................................................................................... 10(2) Consolidated Statements of Income and Comprehensive Income .................................................................. 12(3) Consolidated Statements of Changes in Equity .............................................................................................. 14(4) Consolidated Statements of Cash Flows ......................................................................................................... 16(5) Notes to the Consolidated Financial Statements ............................................................................................. 18(Notes on going concern assumption) .............................................................................................................. 18(Important matters that form the basis for preparing Consolidated Financial Statements) .............................. 18(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 ..................................................................................................................................................................... 32(1) Status of Production, Orders Received, and Sales (April 1, 2020 to March 31, 2021) ................................... 32(2) Changes in Directors and Corporate Auditors................................................................................................. 33

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 continued to face an extremely severe
conditions, with deterioration in corporate earnings and the employment environment due to the impact of the
spread of the novel coronavirus disease (COVID-19). Some signs of recovery were visible, as Japan strived toboth contain the spread of infection and stimulate economic activity, but with fears of a renewed spread of
infection, there are no indications of the pandemic being brought under control. The outlook for businessconditions in the global economy also remained uncertain, with regional differences in the relaxation of
restrictions on economic activity, the status of vaccinations, and other similar matters.
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 2020 was 58,220 thousand gross tons, a 12.2%
decrease year-on-year, while order volume for new vessels fell to 33,360 thousand gross tons, a 24.2% decreaseyear-on-year, against the backdrop of restrictions on movement due to the spread of COVID-19, and suppressed
investment in new vessels by vessel owners and others. The slump in demand for new vessels has continued,
except in China, where state-owned shipping companies and government-run financial institutions underpinned
demand.
Under such a corporate environment, with sales activities restricted in countries across the world, the Groupadjusted its sales structure, including through online business meetings and attendance, and endeavored to capture
new orders. Despite the Group’s efforts to strengthen its inventory control and enhance production efficiency,
amid adjustments to delivery times from shipyards in Japan, consolidated net sales for the fiscal year underreview decreased by 5.6% year-on-year to 56,745 million yen. In terms of profit, operating profit decreased by
62.8% year-on-year to 994 million yen, ordinary profit decreased by 60.6% year-on-year to 1,149 million yen,and profit attributable to owners of parent decreased by 64.3% year-on-year to 712 million yen.
Performance by business segment of the Company and the consolidated Group for the fiscal year under review
is as follows.
<Internal combustion engines>
1. Marine-use
Despite the contribution from sales of engines to the Ministry of Defense, net sales decreased by 6.6% yearon-year to 44,573 million yen, and segment income decreased by 16.3% year-on-year to 3,259 million yen, due
to a decline in sales for commercial use, a decrease in maintenance-related sales, and other factors.
2. Land-use
Net sales decreased by 9.5% year-on-year to 8,567 million yen and a segment loss of 697 million yen wasrecorded (compared to segment income of 684 million yen in the previous fiscal year) due to an increase inoutsourcing expenses and other costs associated with maintaining the performance of some items, in addition toa drop in engines sold, and other factors.
Consequently, net sales for the segment decreased by 7.1% year-on-year to 53,140 million yen, and segment
income decreased by 44.1% year-on-year to 2,561 million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, net sales and segment income rose due to an increase in sales volume.
2. Real estate leasing-related
In real estate leasing-related, net sales edged down while segment income decreased.
3. Electricity sales-related
In electricity sales-related, net sales edged down while segment income increased slightly.
4. Precision parts-related
In precision parts-related, net sales increased while segment income decreased.
Consequently, net sales for the segment increased by 25.3% year-on-year to 3,605 million yen, and segment
income increased by 35.5% year-on-year to 557 million yen.
2

Under the Mid-term Management Plan covering the period from April 1, 2020 to March 31, 2023, the Groupis promoting the following four key initiatives to respond to the needs of its customers and achieve sustainablegrowth.
1. Expand sales domains and increase our share strategically by introducing new products to the market
2. Develop technology with a view to the next-generation energy
3. Improve production efficiency through synergic effects among production bases
4. Establish a solid earnings base and pursue ESG management
As part of our engagement with the important goal of reducing greenhouse gas emissions, we have developed
a lineup of four forms of dual fuel engine, able to switch between LNG and heavy oil. In the marine-use field,
this technology reduces environmental impact and enables operators to respond to fluctuations in fuel prices andthe like, while in the land-use field, it plays an important part in private power generation equipment, supporting
disaster response and business continuity planning (BCP).
Development is also underway of new energy sources combining next-generation fuels and fossil fuels, andwe are evaluating the durability of a carbon-neutral biofuel that can be used in existing diesel engines without
the need for extensive modification.
We commenced production at our Himeji Factory in 2018. This is a newly-build factory constructed in
anticipation of the shift to large vessels aimed at more efficient marine transport. Through our dual-baseproduction system, comprising the Moriyama Factory, which specializes in the manufacture of small and medium
scale engines, and the Himeji Factory, we will strive to achieve more efficient production.
We will endeavor to develop business operations with ESG as the core of our management, to continue tobe a sustainable company.

2) Outlook for the next fiscal year
Concerning the outlook of the Group for the next fiscal year, an overall year-on-year decline is expected in
net sales.
Regarding sales of marine-use engines, it is anticipated that overall order volume for new vessels will notrecover to the levels seen prior to the COVID-19 pandemic. However, an increase in orders for container ships
is expected at shipyards. In view of this, we plan to increase production of large-scale auxiliary engines forcontainer ships at the Himeji Factory. We expect the average sales price per engine to rise, and forecast a yearon-year increase in net sales for commercial-use engines. At the same time however, net sales of engines to the
Ministry of Defense will decrease, after substantial growth in sales last year.
Regarding sales of land-use engines, net sales are expected to increase in the context of a rise in social
awareness of disaster risk management.
Maintenance-related sales are expected to increase year-on-year, due to a continuing recovery in ocean cargovolumes.
The situation remains unpredictable however, due to the impact of COVID-19, which include production
adjustments at shipyards in Japan, and restrictions on movement and entry to ports in countries around the world.
Looking ahead to the post-COVID-19 world, business operations must be controlled in anticipation of thecontinued competition for orders, the construction of service systems against the backdrop of an increased
acceptance of remote operations, and the acceleration of research and development competition for nextgeneration fuels, amid an increase in environmental investment.
In view of this situation, the Group will speed up the strengthening of management structure and strive toenhance profitability for sustainable growth, through measures such as the selection and focus of management
resources, review of the product lineup, and further radical cost reductions.
For the six months ending September 30, 2021, the Group forecasts net sales of 24,000 million yen, operating
profit of 0 million yen, ordinary profit of 0 million yen, and profit attributable to owners of parent of 0 million
yen. For the fiscal year ending March 31, 2022, the Group forecasts net sales of 55,000 million yen, operating
profit of 1,300 million yen, ordinary profit of 1,200 million yen, and profit attributable to owners of parent of3

1,000 million yen.

(2) Analysis of Financial Position
In assets as of the end of the fiscal year under review, cash and deposits decreased by 842 million yen fromthe end of the previous fiscal year. Notes and accounts receivable - trade decreased by 850 million yen, while theturnover period of accounts receivable was 118.6 days (compared with 109.4 days at the end of the previous
fiscal year). In addition, inventories decreased by 2,249 million yen while the turnover period was 76.2 days
(compared with 70.8 days at the end of the previous fiscal year). Meanwhile, property, plant and equipment
decreased by 629 million yen compared with the end of the previous fiscal year. Total assets as of March 31,
2021 amounted to 80,381 million yen, a decrease of 5,176 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 3,905 million yen from the end of the previous fiscal year while their turnover period was 74.0 days
(compared with 79.4 days at the end of the previous fiscal year). In addition, owing to scheduled payment, shortterm borrowings and long-term borrowings in total decreased by 1,235 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%, a decrease of
0.7 point from the end of the previous fiscal year. As a result, total liabilities decreased by 5,745 million yen fromthe end of the previous fiscal year to 39,167 million yen.
In net assets, retained earnings increased by 323 million yen from the end of the previous fiscal year to 36,901
million yen. Total net assets increased by 569 million yen from the end of the previous fiscal year to 41,214
million yen. As a result, the equity ratio at the end of the fiscal year under review was 51.2%.
(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, 2020 toMarch 31, 2023).
(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, 2021 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 otherthan Japan, and may conduct these transactions in the US dollar, euro, or other local currency, aside from the yen.
Some overseas consolidated subsidiaries also conduct sales in yen, and concerning these accounts receivable atthe fiscal year-end, foreign exchange losses or gains may occur due to foreign exchange fluctuation of thestandard 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 56,745 million yen while interest-bearing debt (excluding
lease obligations) was 13,256 million yen. In addition, cash and cash equivalents at the end of the fiscal year
under review decreased by 986 million yen. Moving forward, the Group will strengthen cash flow improvement
activities, and work toward measures to strengthen the financial standing through inventory reduction andimprovement 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 that4

procurement 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 specific materials arise, it ispossible that cost reductions will not proceed steadily.
4) Securing human resources
The future success of the Group is highly dependent on securing outstanding human resources in such fields
as research, development, technology, manufacturing, and management. With Japan’s population on a declining
trend, competition to secure outstanding human resources is growing. In addition, if employees currently
employed retire, or if it is not possible to acquire talented personnel, the Group’s businesses, business results orfinancial conditions may be adversely affected.
5) Legal restraints and legal proceedings
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 forexhaust 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 product development 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.
The Company may become a party to legal proceedings with shareholders, transaction partners or others, ormay be subject to administrative proceedings or investigation by authorities. If the results of legal proceedings
to which the Company is a party are unfavorable to the Company, then this may have an adverse effect on theGroup’s businesses, business results and financial conditions.
6) 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 bycontinuously 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.
7) Risk of natural disasters, etc.
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. The Group
continually endeavors to reduce the risk of damage by strengthening disaster mitigation measures andimplementing initial disaster response training for employees. However, there is the possibility that production
activities may be obstructed in the event of a natural disaster such as a large-scale earthquake, storm, flood, etc.
as well as a fire, etc. In addition, in the event that these disasters or accidents occur within the Group’s supply
chain, such as suppliers of parts, etc., or product delivery destinations, the shortage of supply or interrupted
supply of parts, etc. from suppliers and the suspension or reduction of production activities at product delivery
destinations could have a significant adverse effect on the Group’s production activities, sales activities and otheractivities.
8) Information management
In addition to information about customers and other companies, the Group handles its own trade secrets(technical information of the Group, etc.). It is possible that this information could be leaked externally as theresult of intentional acts, including unauthorized system access and cyber attacks, or negligence. The Company
is working on security measures to protect itself from external threats, but in the event of unexpected intrusion
through networks, external information leaks due to unauthorized operations, the suspension of services, and theimpact on production processes, etc., we could face liabilities for damage and significant countermeasure costs,
which could have an adverse effect on the Group’s businesses, business results or financial conditions.
9) Risk of overseas expansion

5

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. The Company
regularly obtains and analyzes information on trends in the Chinese market from its consolidated subsidiaries
and licensees, and determines its response based on this. 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.
10) COVID-19
It is feared that deteriorating conditions in the global economy due to the spread of the COVID-19 pandemic,
and the resulting slump in ocean cargo volumes, may affect the Group’s production and sales, including throughdelays in the delivery of products for which orders have already been received.
The Group places primary importance on the security and safety of its employees, customers, and local
communities. It is engaged in promoting hygiene management (the use of masks, temperature checks, alcohol
hand disinfectants, etc.), working from home and staggered work times, as well as the utilization of online
meetings and the like, and a prohibition on non-vital, non-urgent overseas business trips, as measures to preventthe spread of infection.
The Group will continue to monitor changes in the situation and take measures accordingly. However, should
unanticipated circumstances arise, such as the further spread of infections, then this may have a serious, adverse
effect on the Group’s financial conditions business results and cash flows.
11) Business results and financial conditions of entities accounted for using equity method
The Company holds shares of entities accounted for using equity method. The Company exerts significant
influence over these companies and is able to participate in decision making on their businesses and financial
policies. However, this does not constitute control, and therefore the Company does not normally decide on thepolicies themselves. A deterioration in the business results or financial conditions of these entities accounted forusing equity method could have an adverse effect on the Group’s business results and financial conditions.

62. Overview of the Corporate GroupThe Group is comprised of the Company and its 21 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
JAPAN CO., LTD., DAIHATSU DIESEL NAKANIHON CO.,Internal Marine-use/
combustion land-use
engines
engines

Diesel engines for marine-use

LTD., DAIHATSU DIESEL SHIKOKU CO., LTD., DAIHATSU

Diesel engines for land-use

DIESEL 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.

Other

Industrial
equipment
Real estateleasing
Electricity
sales
Precision
parts

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

MD 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

7

Production
DAIHATSU DIESELHIMEJI CO., LTD.

Sale of internal combustion
engines and parts
9 companies

Transportation
DS CORPORATIONInternal combustion
engines(Marine-use/land-use engines)

Internal warehousemanagement
DAIHATSU DIESELPARTS SERVICE CO.,LTD.
Rental office
DAIHATSU DIESELUMEDA CITY CO., LTD.

Daihatsu Diesel
Mfg. Co., Ltd.

Generalcustomers

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.

8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.

9

4. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2020
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

10

As of March 31, 2021

21,17018,82012,9742,125(13)55,07820,327
17,97010,7251,639(11)50,651

10,254
6,366
5,088
132
714
22,554
1,139

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

2,583
0
3,586
671
(55)
6,786
30,48085,558

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

(Million yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Accrued expenses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

11

As of March 31, 2021

7,661
5,789
4,455
511
645
670
51
2,724
1,838
24,347

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

10,036
737

6,711
482

76

66

6,913
193
2,608
20,56544,912

7,225
193
2,384
17,06339,1672,434
2,191
36,578(28)
41,1752,434
2,171
36,901(42)
41,465

155
(141)
(591)
(576)
46
40,64585,558

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

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Outsourcing service income
Reversal of allowance for doubtful accounts
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
National subsidies
Subsidy income
Other
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on sale of non-current assets
Loss on valuation of investment securities
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

12

For the fiscal year
ended March 31, 2021

60,08747,667
12,41956,74545,71811,027

7,429
2,315
9,745
2,674

7,908
2,124
10,032
994

11
45

8
27

–

43

–
47
0
345
450

24
26
2
140
274

100

91

23

–

30
54
209
2,915

–
27
119
1,149

0
–
112
110
222

1
88
97
13
200

18
2
47
68
3,070
1,069
1
1,070
1,999
3
1,996

16
0
7
24
1,325
785
(173)
612
713
1
712

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

13

For the fiscal year
ended March 31, 2021

1,999

713

(24)
(29)
51

91
42
82

(118)

61

(121)
1,878

278
991

1,875

990

3

1

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2020
(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of period

2,434

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity2,191

35,060(10)

39,675

Changes during period
Dividends of surplus

(477)

(477)

Profit attributable to ownersof parent

1,996

1,996

Purchase of treasury shares
Disposal of treasury shares(1)

Transfer of loss on disposalof treasury shares
Change from merger ofconsolidated andunconsolidated subsidiaries
Net changes in items otherthan shareholders' equity

(77)

59

58

1

(1)

-

-

1,517

(17)

1,500

2,434

2,191

36,578(28)

41,175

Total changes during period
Balance at end of period(77)

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

180

Foreigncurrencytranslation
adjustment

Remeasureme
nts of defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

7

(643)

(455)

43

Total net
assets39,263

Changes during period
Dividends of surplus(477)

Profit attributable to owners ofparent

1,996

Purchase of treasury shares(77)

Disposal of treasury shares

58

Transfer of loss on disposal oftreasury shares
Change from merger ofconsolidated andunconsolidated subsidiaries
Net changes in items otherthan shareholders' equity

(24)

(148)

51

(121)

3

(118)

Total changes during period

(24)

(148)

51

(121)

3

1,382

Balance at end of period

155

(141)

(591)

(576)

46

40,64514

For the fiscal year ended March 31, 2021
(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of period

2,434

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity2,191

36,578(28)

41,175

Changes during period
Dividends of surplus

(477)

(477)

Profit attributable to ownersof parent

712

712

Purchase of treasury shares
Disposal of treasury shares(4)

Transfer of loss on disposalof treasury shares
Change from merger ofconsolidated andunconsolidated subsidiaries
Net changes in items otherthan shareholders' equity

(62)

47

42

4

(4)

(19)

93

-

(19)

323

(14)

289

2,434

2,171

36,901(42)

41,465

Total changes during period
Balance at end of period

(62)

73

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

155

Foreigncurrencytranslation
adjustment

Remeasureme
nts of defined
benefit plans

(141)

(591)

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

(576)

46

Total net
assets40,645

Changes during period
Dividends of surplus(477)

Profit attributable to ownersof parent

712

Purchase of treasury shares(62)

Disposal of treasury shares

42

Transfer of loss on disposalof treasury shares
Change from merger ofconsolidated andunconsolidated subsidiaries
Net changes in items otherthan shareholders' equity

73
91

104

82

278

1

279

Total changes during period

91

104

82

278

1

569

Balance at end of period

247

(36)

(509)

(298)

47

41,21415

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2020
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 bonuses for directors(and other officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Interest and dividend income
Interest expenses
Loss (gain) on valuation of investment securities
Loss (gain) on sale of property, plant and equipment
Loss on abandonment of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease/increase in consumption taxes
receivable/payable
Increase (decrease) in guarantee deposits received
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Purchase of shares of subsidiaries
Proceeds from collection of loans receivable
Proceeds from withdrawal of time deposits
Payments into time deposits
Other, net
Net cash provided by (used in) investing activities

16

For the fiscal year
ended March 31, 2021

3,070
2,771
3
(33)

1,325
2,771
(2)
(48)

6

(45)

208

268

(445)

(9)

(57)
100
47
2
18
(1,788)(2,706)
913

(36)
91
7
(0)
16
919
2,249
(3,989)

(205)

428

(19)
547
2,433
57
(101)
(775)
1,614

(3)
323
4,266
36
(91)
(1,176)
3,035(1,214)
2
(50)
–
(24)
0
750
(711)
110
(1,137)(1,785)
9
(123)
31
–
0
698
(678)
–
(1,847)

(Million yen)
For the fiscal year
ended March 31, 2020
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Net increase (decrease) in short-term borrowings
Repayments of finance lease obligations
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents at end of period

17

For the fiscal year
ended March 31, 2021

4,250
(3,020)
(77)
(477)
(155)
(597)
(77)

–
(1,235)
(62)
(477)
–
(535)
(2,310)

(47)

67

351
20,143(1,054)
20,495–68

20,495

19,509(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: 13
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(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 their overall
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
B. Inventories
Finished goods/work in process/raw materials
Stated at cost using the periodic average method (The book value will be written down for18

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 the lessee
These 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, 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 average remaining
years of service of the corresponding employees at the time of occurrence (10 years) using the straight-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,commencing with the consolidated fiscal year following the one in which they were incurred.
(5) Significant hedge accounting
A. Hedge accounting
19

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.

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 to utilize
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 for engines 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, 2020
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Other(Notes)*1

Total

Marine-use
engines

Land-useengines

47,7399,470

57,2102,876

60,087-60,087

-

-

-

-

-

-

-

47,7399,470

57,2102,876

60,087-60,087

Segment income

3,894

684

4,579

411

4,990

(2,315)

2,674

Other
Depreciation

1,914

370

2,285

337

2,622

148

2,771

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, 2021
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Other(Notes)*1

Total

Marine-use
engines

Land-useengines

44,5738,567

53,1403,605

56,745-56,745

-

-

-

-

-

-

-

Total

44,5738,567

53,1403,605

56,745-56,745

Segment income (loss)

3,259

(697)

2,561

557

3,119

(2,124)994

Other
Depreciation

1,941

385

2,326

339

2,665

106

2,771

Total

Net sales(1) Net sales to outside
customers(2) Inter-segment net
sales or transfers(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 Consolidated Statements of Income.
*4 Assets are not allocated to the business segments.

22

(Related information)
For the fiscal year ended March 31, 2020
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
32,627

Latin America
18,674

Other

1,761

Total
7,023

60,087(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, 2021
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
33,843Latin America
15,615

1,382

Other

Total
5,903

56,745(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, 2020

Category
Net assets per share
Basic earnings per share

For the fiscal year
ended March 31, 2021

1,276.43 yen

1,296.22 yen

62.80 yen

22.43 yen

(Note) The basis for the calculation of basic earnings per share is as follows.
For the fiscal year
ended March 31, 2020

Category

For the fiscal year
ended March 31, 2021

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

1,996

Amount not attributable to shareholders of common shares(Million yen)
Profit attributable to owners of parent relating to common
1,996
shares (Million yen)
Average number of shares of common shares outstanding
31,790,050 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

712
712
31,740,671 shares5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(Million yen)
As of March 31, 2020
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, 2021

17,308999
17,902
107
12,314
610
885
1,072
(4)
51,196

16,7201,127
16,56895
10,132
473
898
871
(3)
46,884

4,660
1,501
5,549
299
653
4,511
123
17,299

4,424
1,375
5,152
237
818
4,507
385
16,901

1,117
12
1,130

904
14
918

655
3,981
0
3,254
367
(8)
8,251
26,68077,876

765
3,980
0
3,434
242
(8)
8,415
26,23573,120(Million yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable
Accrued expenses
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for bonuses for directors (and other officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Long-term guarantee deposits
Provision for retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction entry of noncurrent assets
Reserve 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, 2021

1,095
6,429
5,765
3,220
1,191
501
131
2,671
99
506
5,324
504
45
179
27,665

720
4,573
4,087
3,220
3,307
428
111
3,152
33
58
5,767
455
–
59
25,976

9,983
717
10
5,713
115
322
16,86344,528

6,676
442
10
6,136
115
96
13,47739,453

2,434

2,434

2,150
2,150

2,150
2,150

221

221

216

191

0
26,3901,807
28,414
28,636(28)
33,193–27,3901,076
28,65828,880(42)
33,422

154
154
33,34877,876243
243
33,666
73,120(2) Non-consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest and dividend income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
National subsidies
Subsidy income
Other
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit27

For the fiscal year
ended March 31, 2021

52,23945,393
6,846
6,813
32

49,40943,5985,811
7,233(1,421)

1,371
321
1,693

1,738
181
1,919

100
16
116
1,609

91
21
113
384

0
–
112
–
112

1
88
97
13
200

17
47
65
1,656
200
(28)
172
1,484

7
7
14
569
69
(225)
(155)
725

(3) Non-consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2020
(Million yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning of
periodSharecapitalLegalcapitalsurplus

2,434

2,150

Other
capitalsurplus-

Total capitalsurplusLegalretainedearnings

2,150

221

Reserve fortax purpose
Reserve for
reduction
specialentry ofdepreciation
non-current
assetsGeneralreserve

Retainedearnings
brought
forwardTotal
retainedearnings

25,600

1,572

27,630

(477)

(477)

(790)

-

0

-

5

(5)

-

(23)

23

-

1,484

1,484

234

1

Changes during period
Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve fortax purpose reduction
entry of non-current
assets
Reversal of reserve fortax purpose reduction
entry of non-current
assetsProfitPurchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

790
(0)

(1)

(1)

1

1

(1)

(1)

-

-

-

-

-

(17)

(0)

790

234

1,006

2,434

2,150

-

2,150

221

216

0

26,3901,807

28,63628

Valuation and translation
adjustments

Shareholders’ equity

TreasurysharesBalance at beginning of
period(10)

Valuation
Total
Total valuation Total net assets
difference onshareholders’and translation
available-for-sale
equityadjustments
securities
32,204177

177

32,382

Changes during period
Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve fortax purpose reduction
entry of non-current
assets
Reversal of reserve fortax purpose reduction
entry of non-current
assetsProfitPurchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

(477)

(477)

-

-

-

-

-

-

-

-

1,484

1,484

(77)

(77)

(77)

59

58

58

-

-

(22)

(22)

(22)

(17)

988

(22)

(22)

965

(28)

33,193

154

154

33,34829

For the fiscal year ended March 31, 2021
(Million yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning of
periodSharecapitalLegalcapitalsurplus

2,434

2,150

Other
capitalsurplus-

Total capitalsurplusLegalretainedearnings

2,150

221

Reserve fortax purpose
Reserve for
reduction
specialentry ofdepreciation
non-current
assets216

0Generalreserve

Retainedearnings
brought
forwardTotal
retainedearnings

26,3901,807

28,636

(477)

(477)

(1,000)

-

0

-

24

-

725

725

Changes during period
Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve fortax purpose reduction
entry of non-current
assets
Reversal of reserve fortax purpose reduction
entry of non-current
assetsProfitPurchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

1,000
(0)

(24)

(4)

(4)

4

4

(4)

(4)

-

-

-

-

-

(24)

(0)

1,000

(730)

243

2,434

2,150

-

2,150

221

191

-

27,3901,076

28,88030

Valuation and translation
adjustments

Shareholders’ equity

TreasurysharesBalance at beginning of
period(28)

Valuation
Total
Total
difference on valuation andshareholders’available-for- translation
equitysale securities adjustments
33,193

154

154

Total net
assets33,348Changes during period
Dividends of surplus
Provision of generalreserve
Reversal of reserve for
special depreciation
Provision of reserve fortax purpose reduction
entry of non-current
assets
Reversal of reserve fortax purpose reduction
entry of non-current
assetsProfitPurchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

(477)

(477)

-

-

-

-

-

-

-

-

725

725

(62)

(62)

(62)

47

42

42

-

-

89

89

89

(14)

229

89

89

318

(42)

33,422243

243

33,66631

6. Other(1) Status of Production, Orders Received, and Sales (April 1, 2020 to March 31, 2021)
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

1,031,821

44,573(6.6)

Land-use engines

89,072

8,567

(9.5)

-

2,975

32.9

56,116

(5.6)

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(9.4)

1,233,138(13.2)

80,14921.2-

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

1,081,881

Land-use engines

50,975

Other

Total

42,143[25,575]
8,140
[412]
2,964
[-]
53,249[25,987](8.7)

24,767[11,775]
4,736
[313]
678
[-]
30,181[12,089]

(8.9)
(8.3)
(1.6)
(8.7)

(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.

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

VolumeHorsepower

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

49.8

(6.6)

8.0

(9.5)

-

25.3

40.4

(5.6)

Export ratio

Internal combustion engine
Marine-use engines

1,031,821

Land-use engines

89,072

Other

44,573[22,214]
8,567
[687]
3,605
[-]
56,745[22,901]

Total(Notes)*1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (68.2%), Europe (19.6%), Latin America (6.0%), North America (3.2%), Others (3.0%)*3 The “Other” segment includes precision parts-related (1,454 million yen), industrial machinery-related (1,520 million yen) andreal estate leasing-related (629 million yen).
*4 The figures above do not include consumption taxes.

(2) Changes in Directors and Corporate Auditors (Scheduled on June 29, 2021)
1. Candidates for Newly Appointed Directors:
Tomohiro Miyoshi (currently Managing Executive Officer)
Noriyoshi Matsushita (currently Statutory Auditor;
currently Executive Advisor,
Daihatsu Motor Co., Ltd.)
2. Candidate for Newly Appointed Statutory Auditor:
Kunihiro Morimoto (currently General Manager,
Customer Service Division,
Daihatsu Motor Co., Ltd.)
3. Retiring Directors:
Yoichi Hayata (currently Director and Managing Executive Officer)
Hideki Asada (currently Director and Managing Executive Officer)
4. Retiring Statutory Auditor:
Noriyoshi Matsushita (currently Statutory Auditor)

33

(Reference)
New Management Team (Scheduled on June 29, 2021)(Directors)
ChairmanPresident and Representative
Director
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Director and Managing Executive
Officer
Outside Director
Outside Director
Outside Director
Outside Director(Statutory Auditors)
Standing Statutory Auditor
Outside Statutory Auditor

Shigeki Kinoshita
Yoshinobu Hotta
Takashi Mizushina
Shinichi Nanba
Toshiki Sanaga
Tomohiro Miyoshi
Tamon Tsuda (currently Representative, Tsuda CPA Office)Kazuo Komatsu (currently Attorney-at-law, Kitahama Partners,
Foreign Law Joint Enterprise)
Hiroko Ameno (currently Professor, Faculty of Business and Commerce,
Kansai University)
Noriyoshi Matsushita (currently Executive Advisor,
Daihatsu Motor Co., Ltd.)

Outside Statutory Auditor

Atsumi Masada
Norihide Bessyo (currently Standing Statutory Auditor,
Daihatsu Motor Co., Ltd.)
Kunihiro Morimoto(Executive Officers)
Managing Executive Officer
Managing Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Yoichi Hayata
Hideki Asada
Tetsuya Bando
Shuji Kawano
Isao Wakamiya
Masaki Hama
Shunji Minami
Norihiko Kashimura

34