Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
[Japanese GAAP]
April 28, 2023
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
Phone: +81-6-6454-2331
Scheduled date of Annual General Meeting of Shareholders: June 29, 2023
Scheduled date of commencing dividend payments: June 30, 2023
Scheduled date of filing annual securities report: June 29, 2023
Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled (for institutional investors and analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(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, 2023
72,113
25.2
3,601
72.1
3,660
46.0
2,948
49.8
March 31, 2022
57,5991.5
2,092 110.4
2,506 118.1
1,968 176.4(Note) Comprehensive income: Fiscal year ended March 31, 2023: 3,215 million yen [38.0%]
Fiscal year ended March 31, 2022: 2,330 million yen [135.0%]
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, 2023
93.37
6.6
4.0
5.0
March 31, 2022
62.01
4.7
3.0
3.6
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2023: 45 million yen
Fiscal year ended March 31, 2022: 13 million yen(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

45,72443,06947.9
48.2

1,446.90
1,354.99

As of March 31, 2023
95,377
As of March 31, 2022
89,268(Reference) Equity: As of March 31, 2023: 45,678 million yen
As of March 31, 2022: 43,030 million yen(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2023
March 31, 2022

Net cash provided by(used in) operating
activities

Net cash provided by(used in) investing
activities

Net cash provided by(used in) financing
activities

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

4,488
7,870

(3,076)(1,300)(1,981)
84

25,81526,354

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2022
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)

Total

Yen

Yen

Yen

Yen

-

0.00
0.00

-

15.00
28.00

15.00
28.00

-

0.00

-

19.00

19.00

Total
dividends

Payoutratio(consolidated)

Yen Million yen

476
883

Dividends
to netassets(consolidated)

%

%

24.2
30.0

1.1
2.0

30.3

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 toMarch 31, 2024)(% 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

35,00076,000% Million yen

10.8
5.4

0
3,000

% Million yen(100.0)(16.7)

0
3,000% Million yen(100.0)(18.0)

02,000%(100.0)(32.2)

Yen

0.00
62.79

* 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: Yes
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, 2023: 31,850,000 shares
March 31, 2022: 31,850,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2023: 280,235 shares
March 31, 2022: 93,335 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2023: 31,573,069 sharesFiscal Year ended March 31, 2022: 31,738,730 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 toMarch 31, 2023)(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%
64,063
1,152
March 31, 2023
27.4
2,662
37.5
2,766
26.4
March 31, 2022
50,292
1.8(149)
1,936 403.8
2,188 201.5
Basic earnings per share
Fiscal year ended
March 31, 2023
March 31, 2022

Diluted earnings per share
Yen

Yen

87.61
68.94

-

(2) Non-consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

As of March 31, 2023
85,74537,642
81,16735,417
As of March 31, 2022
(Reference) Equity: As of March 31, 2023: 37,642 million yen
As of March 31, 2022: 35,417 million yen

43.9
43.6

1,192.36
1,115.26

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 toMarch 31, 2024)(% indicates changes from the previous corresponding period.)
Net salesFirst half
Full year

Million yen

31,00068,000

%

11.9
6.1

Million yen

800
2,400

Basic earnings
per share

ProfitOrdinary profit%(32.2)(9.9)

Million yen

1,100
2,000

%

(24.7)(27.7)

Yen

34.53
62.79

* These consolidated financial results are outside the scope of audit conducted by a certified public accountant oraudit corporation.
* Explanation of the proper use of financial results forecast and other notes(Note on forward-looking statements)
The financial results forecasts and other forward-looking statements herein are based on information 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 “1. Summary of Operating Resultsand Others (4) Future Prospects” on page 5 (Japanese original) of the attached material for the assumptions thefinancial 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 Tuesday, May 23, 2023. The
briefing materials will be posted on the Company’s website after the session.

Table of Contents
1. Summary of Operating Results, etc. ....................................................................................................................... 2(1) Summary of Operating Results for the Fiscal Year under Review .................................................................... 2(2) Summary of Financial Position for the Fiscal Year under Review.................................................................... 4(3) Summary of Cash Flows for the Fiscal Year under Review .............................................................................. 4(4) Outlook for the Future ....................................................................................................................................... 5
2. Basic Stance Concerning Choice of Accounting Standards .................................................................................... 5
3. Consolidated Financial Statements and Primary Notes .......................................................................................... 6(1) Consolidated Balance Sheets ............................................................................................................................ 6(2) Consolidated Statements of Income and Comprehensive Income .................................................................... 8(3) Consolidated Statements of Changes in Equity............................................................................................... 10(4) Consolidated Statements of Cash Flows ......................................................................................................... 12(5) Notes to the Consolidated Financial Statements ............................................................................................. 14(Notes on going concern assumption)............................................................................................................... 14(Changes in accounting policy) ........................................................................................................................ 14(Segment information, etc.) .............................................................................................................................. 14(Per share information) ..................................................................................................................................... 17(Significant subsequent events) ........................................................................................................................ 17
4. Other ..................................................................................................................................................................... 18(1) Status of Production, Orders Received, and Sales .......................................................................................... 18(2) Changes in Directors and Corporate Auditors ................................................................................................. 19

1

1. Summary of Operating Results, etc.
(1) Summary of Operating Results for the Fiscal Year under Review
During the consolidated fiscal year under review, the Japanese economy was on a path toward recovery mainlyon account of rebound demand from the COVID-19 crisis, as economic activities further returned to normal due toa weakened trend in the self-restraint of consumption activities caused by the COVID-19 pandemic. On the other
hand, the outlook remains uncertain due in part to the depreciation of the yen and soaring commodity prices affectedby resource price hikes.
Looking at the world economy, economic growth remained at a low level as seen in situations such as food andenergy crises associated with the prolonged situation in Ukraine, suppression of economic activities in China
associated with its zero-COVID policy, and active financial tightening policies due to accelerated inflation. IMF’s
World Economic Outlook announced in April 2023 says that the world’s inflation is expected to slow down from
8.7% in 2022 to 7.0% in 2023, and that the world economic growth is expected to decrease from 3.4% in 2022 to2.8% in 2023.
In the shipbuilding and maritime industry, the primary industry in which the Company makes its sales, the numberof new shipbuilding orders received in 2022 was robust mainly for container ships and bulk carriers, despite that the
special demand seen in 2021 settled down mainly because order placement was restrained due to higher ship prices
against a backdrop of soaring steel prices. In addition, disruptions in the marine transport network are being
eliminated, and maintenance demand is also showing recovery mainly in Southeast Asia after a recession caused by
restrictions on social mobility.
Under such a corporate environment, the Group robustly received orders for large-sized engines and dual fuelengines, and maintenance-related sales were also strong. As a result, consolidated net sales for the fiscal year underreview increased by 25.2% year-on-year to 72,113 million yen. In terms of profit, operating profit increased by
72.1% year-on-year to 3,601 million yen, ordinary profit increased by 46.0% year-on-year to 3,660 million yen, andprofit attributable to owners of parent increased by 49.8% year-on-year to 2,948 million yen.
Performance by business segment of the Company and the consolidated Group for the fiscal year under review
are as follows.
<Internal combustion engines>
1. Marine-use
Net sales increased by 30.1% year-on-year to 56,854 million yen and segment income increased by 98.7% yearon-year to 4,603 million yen, due to an increase in maintenance-related sales, an effect of fluctuation of foreignexchange rates, and other factors, in addition to an increase in the sales composition ratios of large-sized engines anddual fuel engines mainly for container ships.
2. Land-use
Net sales increased by 7.9% year-on-year to 10,997 million yen while segment income decreased by 48.6% yearon-year to 817 million yen due to deterioration of the profitability of some products and other factors despite anincrease in sales of engines.
Consequently, net sales for the segment increased by 25.9% year-on-year to 67,852 million yen, and segment
income increased by 38.8% year-on-year to 5,420 million yen.
<Other>
1. Industrial machinery-related
In the aluminum wheel division, net sales increased while segment income declined due to a change in thesales composition and soaring raw materials prices.
2. Real estate leasing-related
In real estate leasing-related, both net sales and segment income increased slightly.
3. Electricity sales-related
In electricity sales-related, both net sales and segment income increased.
4. Precision parts-related
In precision parts-related, both net sales and segment income increased.
Consequently, net sales for the segment increased by 14.5% year-on-year to 4,261 million yen, and segment
income increased by 60.1% year-on-year to 670 million yen.
2

For more than 100 years since its founding, the Company’s social mission has consistently been “to be a part ofthe social infrastructure.” Under the Corporate Philosophy “We shall strive unstintingly for the betterment of society
and symbiosis with our neighbours, drawing on the bold spirit of creativity and yearning for technologicalachievement we nurture within ourselves,” we have been supporting the safety and security of people’s lives fromboth fields of sea and land by creating better society through the power of technology. Our efforts to this end include
securing marine logistics with our marine-use engines as well as electric power for permanent and emergency use
with our land-use engines.
With the unprecedented pandemic brought on by COVID-19, we are already entering an era of uncertainty inwhich the future is difficult to predict. In addition, in the shipbuilding and maritime industry, as the decarbonization
momentum grows, it is predicted that a full-scale transition from petroleum-based fuels to next-generation fuels willtake place. While this will pose a new opportunity for the Group, currently, the speed of this transition and which
fuels will be the mainstay of marine-use engines are uncertain. In order to realize sustainable growth andmaximization of long-term corporate value and shareholder value amid such a volatile and uncertain businessenvironment, we announced the mid- to long-term vision “POWER! FOR ALL beyond 2030” in November last year.
The mid- to long-term vision positions two targets, namely “Balancing GHG (greenhouse gas) reduction andeconomic value enhancement” and “Providing new customer value,” as the most important themes that should beworked on toward 2030.
In addition to developing engines that are compatible with next-generation fuels, we will build a servitizationbased business model by accelerating technologies to support customers through active utilization of AI and IoT and
thereby offering new customer value.
Moreover, we will work to improve the profitability of after-sales maintenance as one of our highest priority
challenges. We also strive to strengthen the management structure of the existing businesses and our organizational
capacity in preparation for future changes in the business environment by accelerating investment in human capitalby the time of the full-scale transition to the engines compatible with next-generation fuels that would occur in 2030
onward.
In order to continue to be a sustainable company, we will promote the business structural reform based on theselection of and focus on the growth areas and improve the growth potential and profitability in global markets.

3(2) Summary of Financial Position for the Fiscal Year under Review
In assets as of the end of the fiscal year under review, cash and deposits decreased by 518 million yen from theend of the previous fiscal year. Notes and accounts receivable - trade, and contract assets increased by 2,546 million
yen, while the turnover period of accounts receivable was 99.2 days (compared with 115.0 days at the end of theprevious fiscal year). In addition, inventories increased by 1,862 million yen while the turnover period was 68.9 days
(compared with 74.2 days at the end of the previous fiscal year). Property, plant and equipment increased by 682
million yen compared with the end of the previous fiscal year. As a result, total assets as of March 31, 2023 amounted
to 95,377 million yen, an increase of 6,108 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
increased by 3,158 million yen from the end of the previous fiscal year while their turnover period was 70.2 days
(compared with 69.2 days at the end of the previous fiscal year). Meanwhile, short-term borrowings and long-termborrowings in total decreased by 1,050 million yen due to scheduled payment, etc. The ratio of interest-bearing
liabilities (excluding lease liabilities) to net sales at the end of the current fiscal year was 18.4%, a decrease of 6.5
points from the end of the previous fiscal year. As a result, total liabilities increased by 3,453 million yen from theend of the previous fiscal year to 49,652 million yen.
In net assets, retained earnings increased by 2,471 million yen compared to the end of the previous fiscal year to40,865 million yen. Total net assets increased by 2,654 million yen compared to the end of the previous fiscal year
to 45,724 million yen. As a result, the equity ratio at the end of the fiscal year under review was 47.9%.

(3) Summary of Cash Flows for the Fiscal Year under Review
Changes in cash and cash equivalents (hereinafter referred to as “capital”) at the end of the fiscal year underreview are as follows.
Cash flows from operating activities resulted in a cash inflow of 4,488 million yen, cash flows from investing
activities resulted in a cash outflow of 3,076 million yen, and cash flows from financing activities resulted in a cash
outflow of 1,981 million yen. As a result, capital decreased by 539 million yen (an increase of 6,844 million yen asof the end of the previous fiscal year).
- Cash flows from operating activities
Cash flows from operating activities resulted in a cash inflow of 4,488 million yen (a cash inflow of 7,870
million yen as of the end of the previous fiscal year) due in part to securing profit before income taxes of 4,007
million yen by recording sales primarily of marine-use internal combustion engines, recording of depreciation of
2,753 million yen, and an increase in trade payables of 3,144 million yen while recording a decrease in inventories
of 1,862 million yen, a decrease in trade receivables of 2,509 million yen, and a decrease in income taxes paid of
1,488 million yen.
- Cash flows from investing activities
Cash flows from investing activities resulted in a cash outflow of 3,076 million yen (a cash outflow of 1,300
million yen as of the end of the previous fiscal year) due to purchase of property, plant and equipment of 3,033
million yen as a result of capital investment, etc. carried out with the aim of developing engines compatible with
next-generation fuels.
- Cash flows from financing activities
Cash flows from financing activities resulted in a cash outflow of 1,981 million yen (a cash inflow of 84 million
yen as of the end of the previous fiscal year) due to repayments of long-term borrowings of 1,150 million yen,
repayments of finance lease liabilities of 319 million yen, and dividends paid of 476 million yen.

4(4) Outlook for the Future
Concerning the outlook of the Group for the next fiscal year, an overall year-on-year increase is expected in net
sales.
Regarding sales of marine-use engines, we expect that the Himeji Factory, a dedicated large-scale engine factory,
continues to maintain its high operation rate in FY2023, following FY2022, by meeting demand for large-sizedengines associated with a rush of container shipbuilding on the back of the demand driven by the stay-at-home
economy under the COVID-19 pandemic. Sales of dual fuel engines, which are environmentally friendly engines,
are also robust, continuing to replace sales from conventional diesel engines. Not only the number of units sold but
also the average sales price per engine has risen, and we expect a year-on-year increase in net sales for commercialuse engines. On the other hand, sales of engines to the Ministry of Defense are expected to decrease, because thenumber of units to be shipped of engines we receive orders according to the shipbuilding process of the Ministrydecreases year on year.
We assume that, although marine logistics remain robust on the back of recovery from the plunge caused by
COVID-19, maintenance-related sales do not reach the level of the previous year because the rebound demand haspeaked out.
Businesses related to selective catalytic reduction (SCR) equipment, naval vessels, and precision parts, whichhave been established as the growth foundation by 2020, have contributed to the growth potential and profitability.
While leveraging the growth foundation, we will carry out investment in tangible and intangible assets toward
FY2030, and thereby build new revenue pillars.
For vessels, we anticipate that full-scale replacement to engines that are compatible with next-generation fuelstakes place in 2030 onwards.
In light of such circumstances, the Company has developed dual fuel engines with many fuel options and low
environmental impact while preparing them to be compatible with new fuels, and successfully created a lineup for
four models.
On the other hand, although sales of dual fuel engines are growing thanks to an increase in orders received mainly
for container ships, the price competition has been increasingly intense. These engines require longer lead time forshipment than conventional diesel engines due to its product features, because we conduct commissioning in both
gas and heavy oil modes before shipping them. As future management issues, we will strive to enhance profitability
by focusing on thorough cost reduction efforts and the strengthening of management structure, while improving thefunctionalities.
Regarding sales of land-use engines, we expect sales to be on the same level as the previous fiscal year, primarily
for pumping stations in urban areas (for disaster relief).
For the six months ending September 30, 2023, the Group forecasts net sales of 35,000 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, 2024, the Group forecasts net sales of 76,000 million yen, operating profit of
3,000 million yen, ordinary profit of 3,000 million yen, and profit attributable to owners of parent of 2,000 million
yen.

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

5

3. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsInventories
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
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

As of March 31, 2023

27,146

26,627

18,336

20,883

12,6851,896(6)60,058

14,5483,339(8)65,389

9,133
5,792
5,084
525
777
21,314
628

8,935
6,843
5,084
188
944
21,996
541

2,707
4,096
474
(10)
7,267
29,20989,268

2,798
4,223
432
(4)
7,449
29,987
95,377

(Million yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease liabilities
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 liabilities
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
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

7

As of March 31, 2023

6,777
5,502
4,440
309
869
671
35
5,050
2,474
26,132

8,179
7,259
4,461
157
526
790
56
5,490
3,665
30,586

9,871
271

8,800
183

34

46

7,216
194
2,478
20,06646,199

7,394
195
2,446
19,06649,6522,434
2,173
38,393(43)
42,9572,434
2,175
40,865(130)
45,344

295
(7)
97
(313)
72
39
43,06989,268

344
(27)
284
(267)
333
45
45,724
95,377

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2022
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
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
National subsidies
Subsidy income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

8

For the fiscal year
ended March 31, 2023

57,59944,31813,281

72,11357,50014,613

8,956
2,232
11,188
2,092

8,522
2,489
11,012
3,601

5
37

10
28

13

45

101
209
5
163
536

18
42
0
70
217

86
35
122
2,506

86
71
158
3,660

4
81
178
–
264

3
71
264
61
400

9
9
2,761
1,327
(525)
802
1,959
(8)
1,968

53
53
4,007
1,208
(154)
1,053
2,954
6
2,948

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2022
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
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

9

For the fiscal year
ended March 31, 2023

1,959

2,954

47
(8)
86
195

49
(25)
40
45

49

151

370
2,330

261
3,215

2,338

3,209

(8)

6

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2022
(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

2,171

36,901

2,434

Treasury shares(42)

Total shareholders’equity41,465

Changes during period
Dividends of surplus

(476)

(476)

Profit attributable to ownersof parent

1,968

1,968

Purchase of treasury shares
Disposal of treasury shares

1

(37)

(37)

36

38

Net changes in items otherthan shareholders' equity

–

1

1,491

(1)

1,492

2,434

2,173

38,393(43)

42,957

Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

Noncontrollinginterests

247

–

(36)

(509)

(298)

47

Total net
assets41,214

Changes during period
Dividends of surplus(476)

Profit attributable to ownersof parent

1,968

Purchase of treasury shares(37)

Disposal of treasury shares

38

Net changes in items otherthan shareholders' equity

47

(7)

134

195

370

(8)

362

Total changes during period

47

(7)

134

195

370

(8)

1,854

Balance at end of period

295

(7)

97

(313)

72

39

43,06910

For the fiscal year ended March 31, 2023
(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

2,173

38,393

2,434

Treasury shares(43)

Total shareholders’equity42,957

Changes during period
Dividends of surplus

(476)

(476)

Profit attributable to ownersof parent

2,948

2,948

Purchase of treasury shares
Disposal of treasury shares

1

(135)

(135)

48

50

Net changes in items otherthan shareholders' equity

–

1

2,471

(86)

2,387

2,434

2,175

40,865(130)

45,344

Total changes during period
Balance at end of period

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

295

Deferred
gains orlosses onhedges(7)

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

Noncontrollinginterests

97

(313)

72

39

Total net
assets

43,069Changes during period
Dividends of surplus(476)

Profit attributable to ownersof parent

2,948

Purchase of treasury shares(135)

Disposal of treasury shares

50

Net changes in items otherthan shareholders' equity

49

(20)

186

45

261

6

267

Total changes during period

49

(20)

186

45

261

6

2,654

Balance at end of period

344

(27)

284

(267)

333

45

45,72411

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2022
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 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
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
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
Proceeds from collection of loans receivable
Proceeds from withdrawal of time deposits
Payments into time deposits
Net cash provided by (used in) investing activities

12

For the fiscal year
ended March 31, 2023

2,761
2,808
(50)
45

4,007
2,753
(3)
118

29

21

116

119

(32)

11

(43)
86
(4)
9
(167)
(1,959)
2,527

(39)
86
(3)
53
(2,509)(1,862)
3,144

(467)

(946)

85
2,963
8,709
43
(84)
(797)
7,870

(34)
1,108
6,023
39
(86)
(1,488)4,488(1,378)
15
(61)
–
0
921
(797)
(1,300)(3,033)
18
(175)
128
–
933
(947)
(3,076)

(Million yen)
For the fiscal year
ended March 31, 2022
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 liabilities
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

13

For the fiscal year
ended March 31, 2023

4,300
(3,325)
(37)
(476)
80
(455)
84

100
(1,150)
(135)
(476)
–
(319)
(1,981)

190

30

6,844
19,50926,354(539)
26,35425,815(5) Notes to the Consolidated Financial Statements(Notes on going concern assumption)

There is no relevant information.
(Changes in accounting policy)

From the beginning of the fiscal year under review, the “Implementation Guidance on Accounting Standard for
Fair Value Measurement” (ASBJ Guidance No. 31, June 17, 2021; hereinafter referred to as the “Fair Value
Measurement Implementation Guidance”) has been applied, and in accordance with the transitional treatments stipulated
in Paragraph 27-2 of the Fair Value Measurement Implementation Guidance, a new accounting policy as stipulated by
the Fair Value Measurement Implementation Guidance shall be applied prospectively. This shall have no impact on the
consolidated financial statements.
(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 tofinancial information and are based on the financial reporting for performance evaluation with regard to annual
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 thereal 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 andevaluation 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
The accounting method used for reportable business segments is a method that is in compliance with theaccounting principles and procedures adopted for the preparation of consolidated financial statements.
Reportable segment income figures are based on operating profit.
Assets and liabilities are not stated because they are not subject to review by the Board of Directors to determine
the allocation of management resources and evaluate achievement.

14

3. Information on net sales, profit (loss), assets, liabilities, and other by reportable segment
For the fiscal year ended March 31, 2022
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes)*2
Financial
Statements(Notes)*3

Reportable segment
Other(Notes)*1

Total

Marine-use
engines

Land-useengines

43,685

10,19253,877

3,722

57,599-57,599

-

-

-

-

-

-

-

43,685

10,19253,877

3,722

57,599-57,599Segment income

2,316

1,589

3,906

418

4,324

(2,232)

2,092

Other
Depreciation

1,933

427

2,360

341

2,702

106

2,808

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.

For the fiscal year ended March 31, 2023
(Million yen)Amountrecorded in
Adjustment Consolidated(Notes) *2
Financial
Statements(Notes)*3

Reportable segment
Other(Notes)*1

Total

Marine-use
engines

Land-useengines

56,854

10,99767,852

4,261

72,113-

72,113

-

-

-

-

-

-

-

56,854

10,99767,852

4,261

72,113-

72,113

Segment income

4,603

817

5,420

670

6,090

(2,489)

3,601

Other
Depreciation

1,998

346

2,344

339

2,683

69

2,753

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.

15

(Related information)
For the fiscal year ended March 31, 2022
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
31,633Latin America
17,936

Other

1,709

Total
6,319

57,599(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, 2023
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
35,102Latin America
27,464

1,742

Other

Total
7,804

72,113(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.

16(Per share information)

Category

For the fiscal year
ended March 31, 2022

Net assets per share
Basic earnings per share

For the fiscal year
ended March 31, 2023

1,354.99 yen

1,446.90 yen

62.01 yen

93.37 yen

(Note) The basis for the calculation of basic earnings per share is as follows.

Category

For the fiscal year
ended March 31, 2022

For the fiscal year
ended March 31, 2023

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

1,968

Amount not attributable to shareholders of common shares(Million yen)
Profit attributable to owners of parent relating to common
1,968
shares (Million yen)
Average number of shares of common shares outstanding
31,738,730 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.

17

2,948
2,948
31,573,069 shares4. Other(1) Status of Production, Orders Received, and Sales
For the fiscal year under review （from April 1, 2022 to March 31, 2023)
1) Production
Production by segment for the current fiscal year is as follows:
Segment

Volume(Million yen)AmountYear-on-year change

Horsepower%

Internal combustion engines
Marine-use engines

1,242,276

56,85430.1

Land-use engines

80,183

10,997

7.9

-

3,630

17.3

71,482

25.5

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

16.5

1,937,524(2.5)

87,031

29.2-

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

1,356,955

Land-use engines

75,035

Other

Total

72,119[44,506]
10,735[1,352]
3,895[-]
86,750[45,859]

58,258[31,080]
5,295
[782]
862
[-]
64,416[31,863]

14.2

35.5
(4.7)
44.3
31.1

(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.

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

VolumeHorsepower

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

64.1

30.1

5.3

7.9

-

14.5

51.3

25.2

Export ratio

Internal combustion engine
Marine-use engines

1,242,276

Land-use engines

80,183

Other

56,854[36,427]
10,997
[583]
4,261
[-]
72,113[37,011]

Total(Notes)*1 Figures in brackets [ ] indicate export volume, and are included in totals.
*2 Major export destinations and compositions are as follows:
Asia (74.3%), Europe (17.8%), Latin America (4.7%), North America (2.5%), Others (0.7%)*3 The “Other” segment includes precision parts-related (1,690 million yen), industrial machinery-related (1,939 million yen) and realestate leasing-related (630 million yen).
*4 The figures above do not include consumption taxes.

18

(2) Changes in Directors and Corporate Auditors (Scheduled on June 29, 2023)
1. Candidates for new Directors:
Kunihiro Morimoto (currently Statutory Auditor;
currently General Manager, Sales CS Division, Daihatsu Motor Co., Ltd.)
Chiho Takeda (currently Attorney-at-law, Miyake & Partners)
Hiroaki Sato
2. Candidate for new Statutory Auditor:
Hitoshi Nakagawa (currently General Manager, Corporate Management
Division, Daihatsu Motor Co., Ltd.)
3. Candidates for re-appointed Directors:
Yoichi Hayata (currently Managing Executive Officer, General Manager,
Technology Management Division)
Hideki Asada (currently Managing Executive Officer, Head of Moriyama
Office, in charge of Quality Assurance Office)
4. Retiring Directors:
Kazuo Komatsu (currently Director)
Hiroko Ameno (currently Director)
5. Retiring Statutory Auditor:
Kunihiro Morimoto (currently Statutory Auditor)

19

(Reference)
New Management Team (Scheduled on June 29, 2023)(Directors)
ChairmanPresident and Representative
Director
Director and Executive Vice
President
Director
Director
Director
Director
Outside Director
Outside Director
Outside Director(Statutory Auditors)
Standing Statutory Auditor
Outside Statutory Auditor
Outside Statutory Auditor(Executive Officers)
Managing Executive Officer
Managing Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Shigeki Kinoshita
Yoshinobu Hotta
Kunihiro Morimoto
Takashi Mizushina
Toshiki Sanaga
Yoichi Hayata
Hideki Asada
Tamon Tsuda (currently Representative, Tsuda CPA Office)Chiho Takeda (currently Attorney-at-law, Miyake & Partners)
Hiroaki Sato

Atsumi Masada
Norihide Bessyo (currently Standing Statutory Auditor,
Daihatsu Motor Co., Ltd.)
Hitoshi Nakagawa (currently General Manager, Corporate Management
Division, Daihatsu Motor Co., Ltd.)

Shinichi Nanba
Masaki Hama
Tomohiro Miyoshi
Tetsuya Bando
Shuji Kawano
Shunji Minami
Norihiko Kashimura
Takahiko Masuda
Hideharu Nagasawa
Takashi Hanamure
Shuichi Shimomura

20