Financial
Results
Briefing

First Half of the Fiscal YearEnding March 31, 2023

November 2022

First Half of the Fiscal Year Ending March 31, 2023

Summary of Earnings

Summary(Million yen)

September
2020
Results

September
2021
Results

September
2022
Results

YoY difference
Increase/Decrease

March 2023(%)

Forecast

Progress(%)

Net sales

25,131

23,361

31,584

8,222

35.2%

71,00044.5%

Operatingincome

(51)

323

667

343

106.0%

3,000

22.2%

Ordinaryincome

(19)

616

832

215

35.0%

3,200

26.0%

Net income

(210)

599

756

157

26.2%

2,500

30.2%

Basic earnings
per share(6.64)

18.88

23.94

5.06

26.8%

78.49

30.5%

Total assets

80,98081,294

91,184

9,889

12.2%

--Equity ratio

49.4%

50.9%

47.7%

(3.2%)(6.3%)--POINT

Sales increased due to strong sales of large engines and DF engines for container ships and the yen’s
depreciation
Maintenance demand recovered mainly in Southeast Asia, which had been stagnant due to restrictions on theflow of people caused by COVID-19

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Net Sales and Earnings for the Internal Combustion Engine Section(Millionyen)yen)(Million

Marine-use
船舶用(国内)(Japan)Marine-use
同 (海外)(overseas)

Land-use
陸上用(国内)(Japan)30,00025,000Land-use
同 (海外)(overseas)

29,49923,576
163
1,178

2,738

1,619

1,600

181

1,200
16,96315,000

1,800

1,400

11,407* including
maintenance related(Million yen)

21,6182,154

20,000Earnings for the internal
Combustion engine section* including
maintenance related

Net sales

1,000

1,217
947

800

10,815600

10,000400
5,000

10,828

8,468

9,798

00
1H FY2021
2020年9月期

POINT2001H FY2022
2021年9月期

1H FY2023
2022年9月期

1H FY2021
2020年9月期

1H FY2022
2021年9月期

1H FY2023
2022年9月期

Increased sales of vertical engines due to the enlargement of engines and the yen’s depreciation
Maintenance-related profit increased mainly overseas due to the relaxation of movement restrictions

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Unit Sales and Maintenance-related Net Sales
Maintenance-related net sales

Units sold(Units)(Units)Marine-use
船舶用(国内)(Japan)400350Marine-use
同(海外)(overseas)

Land-use
陸上用(国内)(Japan)(Million yen)
(Millionyen)

14,000

349

347

14

17

12,000106

10,000275

300131250Land-use
同(海外)(overseas)

16

11,20011,502

8,000

98200

13,165

6,000

150
100

224

204
161

4,000

50

2,000

00
2020年9月
1HFY2021

1HFY2022
2021年9月

1HFY2023
2022年9月

1H FY2021
2020年9月期

1H FY2022
2021年9月期

1H FY2023
2022年9月期

Increased sales of large engines and DF engines due to strong demand for container ships
POINT

Demand for maintenance services recovered due to the relaxation of movement restrictions,and sales increased in particular

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Earnings Forecasts(Million yen)March 2023

March 2022
Results

Forecast

Increase/decrease (%)

57,59971,00023.3

Operating income

2,092

3,000

43.4

Ordinary income

2,506

3,200

27.6

Net income

1,968

2,500

27.0

Basic earnings per share(yen)

62.01

78.49

Net sales*Forecast-Exchange rates: March 2022 (result): ¥112.35, 1H 2022 (result): ¥132.04, 2H 2022 (estimate): ¥130.00
Sales are expected to increase due to strong sales of large engines and DF engines, andprofit is expected to grow due to continued strong sales of parts. They are partly due to theyen’s depreciation continuing from the first half

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Sales Breakdown/Market Share (end of September 2022)
Market Share (Auxiliary Engines for Large Ocean-going Vessels)

事業

Business

Sales Breakdown<Share in Japan>

Internal combustion
engines

93%

Other

7%

DAIHATSUDIESEL48%

用途

Application

Section部門

Marine-use

91%

Land-use

9%<Overseas market share>

Export 63%(Breakdown)
Domestic 37%

Auxiliary power80%generators

Main propulsion
systems

20%

DAIHATSUDIESEL

24%

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Strengthening Business/Overseas Strategy (Licensing) in theMarine-Use Maintenance Business¥15.0 billion
Holding the line

Now

Business focus was selling engines to builders ofnew vessels.
Sales for the after-sales-service did not really exist.

Issues for thefuture

Major
increase

15 years ago Sales approx.

Sales approx. ¥28.0 billion

Shifting to the offensive
Promoting strategic maintenance proposals forship-owners and ship-management customers
Narrowing down target customers and sales
expansion activities aimed at post-COVID-19
demand recovery

Material procurement and sales price strategies in anticipation of higher raw material prices
Build an abnormality diagnosis and maintenance support system by accumulating customer data using DX
Securing demand for after-sales services through the development of new models that take into account
GHG emission regulations

Licensing (in China)
Contract partner since 1982. Contract renewal for 40th anniversary in 2022
Granting of rights for manufacture and marketing of certain classes of internal
combustion engines
Newly entered into a contract alliance for large engines and expanding the range oftarget models
Technology tie-up is being promoted with a view to creating engines that use new fuels
Supporting ocean-going vessel order receipts to further expand market share

Anqing CSSC Diesel Engine Co., Ltd.
Anging Diesel
Anhui Province, China (Yangtze River Basin, 600 km from Shanghai)

Shaanxi Diesel Engine Heavy Industry Co., Ltd.
Shaanxi Diesel
Shaanxi Province, China (50 km from Xi’an)

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights ReservedMarket Trend for Marine Cargo
Global shipping capacity

Global ocean cargo volumes, by product(Million tons)

14

Iron
鉄鉱石
ore

コンテナ
Containers
その他
Other

石炭
CoalGrain
穀物Crude原油 oilPetroleum
石油製品
products

The averageincrease rateof +2.2%/year(Million DWT)

2,500

Tankers
タンカー

Bulk carriers
バルクキャリア

Containers
コンテナ

その他
Other

Compared with2006
122% increase

122,000

10
1,500

8
6

1,000

4500

200
2006 2008 2010 2012 2014 2016 2018 2020 2022

(estimate)2006 2008 2010 2012 2014 2016 2018 2020 2022
Source: The Shipbuilders’ Association of Japan

With the growing trend in shipping capacity in line with the increase in ocean cargo volumes,maintenance demand recovered.
Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Market Trends for Newbuild Vessels
Volume of work in hand, by country

Volume of orders received, by country
Japan
日本
China
中国
Other countries
その他諸国計(Million tons)

100

total

90

21South Korea
韓国
European countries
欧州諸国計
total

40

10200

European
欧州諸国計
countries total

その他諸国計Other countries total

140

49
1321

4
12100

1110331911020194131202030
20South Korea
韓国

1607050Japan日本

1808060(Million tons)

1672020122021

79585460

1620

30Jan.–June
2022
2022/1-6月

75

51080

40
18313China
中国

45435561282122212019

2020

2021

Endof June 2022
2022/6月末

Source: The Shipbuilders’ Association of JapanThe volume of work in hand trended downwards from fiscal 2019, except in China, due to the COVID-19 crisis, but the trend is for arapid recovery beginning in 2021. In China, orders increased sharply in 2021 but have begun to show signs of abating in 2022

Copyright © 2022 DAIHATSU DIESEL MFG.CO.,LTD. All rights Reserved

Daihatsu Diesel Mid- to Long-Term Vision

POWER ! FOR ALL beyond 2030

㻹㼄㼏㼘㼈㻃㻦㼕㼈㼄㼗㼌㼒㼑㻃㻺㼈㻃㻫㼄㼙㼈㻃㻤㼆㼋㼌㼈㼙㼈㼇①

Building a global network to build a service structure
for the international market②

Developing overseas markets and increasing brandshare through the original licensing business③

Developing and marketing highly reliable, high-performance,and low-emission engines④ Providing engine peripherals and digital solutions⑤

Timely supply to meet demand via increased
production capacity!"   㻦㼒㼘㼕㼖㼈㻃㼒㼉㻃㻤㼆㼗㼌㼒㼑㻃㼉㼒㼕㻃㻪㼒㼄㼏㻝㻃㻰㼌㼖㼖㼌㼒㼑
POWER ! FOR ALL beyond 2030

Achieving two missions: balance betweena prosperous society and the natural environment.

SUPPORT
THE SAFETY AND
SECURITY OF
PEOPLEʼS LIVES.

PROTECT THE
RICH NATURALENVIRONMENT.

We are part of the social infrastructureof the sea and land.

We will strive to switch to green energy toconfront global environmental issues.

!"  

 㻦㼒㼘㼕㼖㼈㻃㼒㼉㻃㻤㼆㼗㼌㼒㼑㻃㼉㼒㼕㻃㻪㼒㼄㼏㻝㻃㻷㻤㻵㻪㻨㻷●Commercialization of new fuel-compatible engines●Construction of a servitization business(using products to sell something as a service, not a one-oﬀ sale)

03020520of esnoiin esssgnnae
xp iblesineubst
Sale ompa ization
t-cuel servif
new n of asionaxp

E

Contributing to net-zero emissions andrealizing a sustainable society!"

  

 

Growth Strategy

POWER ! FOR ALL beyond 2030

㻷㻤㻵㻪㻨㻷㻕㻓㻖㻓Business
Strategy

ESG Strategy

Performance
TargetInvestment Plan!"

  

 

POWER ! FORALL beyond 2030
事業戦略! FOR ALL
Strategy
POWERBusinessbeyond 2030

㻥㼘㼖㼌㼑㼈㼖㼖㻃㻶㼗㼕㼄㼗㼈㼊㼜㻝㻃㻰㼄㼕㼌㼑㼈㻃㻨㼑㼊㼌㼑㼈㻃㻥㼘㼖㼌㼑㼈㼖㼖Developing engines that use new fuels

NETZEROEmission

Challenge to achieve
net zero emissions●Methanol combustion engines
Aim to ship commercial engines by the end of 2025
●Ammonia combustion engines
Aim to ship commercial engines in the late 2020s●Hydrogen combustion engines Promote the early establishment●Enhancement of technology to remove nitrogen oxide, etc.
●Optimization of engine operating conditions(enhancement of sensing and control technologies)

Expanding sales of dual fuel (DF) engines●Acquisition of technologies for next-generation engines that use new fuels

Strengthening and expanding the licensing business●Strengthening and expanding after-sales maintenance systems!"   㻥㼘㼖㼌㼑㼈㼖㼖㻃㻶㼗㼕㼄㼗㼈㼊㼜㻝㻃㻯㼄㼑㼇㻃㻨㼑㼊㼌㼑㼈㻃㻥㼘㼖㼌㼑㼈㼖㼖Strengthening and expanding engines
for pump drive and power supply●Contributing to infrastructure facilities in the event of a disaster, etc.

SOCIAL

INFRA
infrastructure

Contributing tosocial infrastructuredevelopment

Increasing market share in areas with power shortages●Achieving a stable supply of electricity by providing engines topower-generating plants, mainly in Southeast Asia

Expanding the engineering business●Strengthening and expanding OEM sales in addition to engine installation,construction, and maintenance to provide optimal solutions!"  

 㻥㼘㼖㼌㼑㼈㼖㼖㻃㻶㼗㼕㼄㼗㼈㼊㼜㻝㻃㻧㼌㼊㼌㼗㼄㼏㻃㻶㼘㼓㼓㼒㼕㼗㻃㻥㼘㼖㼌㼑㼈㼖㼖Sensing
TechnologyDIGITAL

NewCustomerValuesupportDevelopment ofdigital support business●Analyze navigating data with
AI to propose accurate services●Development of technology tomonitor engine condition and enhancement offailure prediction and diagnosis technology using AI●Acceleration of comprehensive
maintenance contracts,
including maintenance support and crew training

Optimization of
Total Cycle Costs

Cost Reduction ofState Monitoring

Detection ofSigns ofEngine FailureCBM（Condition Based Maintenance）Engine Operation
Support System:CMAXS!"  

 

POWER ! FORALL beyond 2030
事業戦略
ESG ALL
Strategy
POWER ! FORbeyond 2030

㻨㻶㻪㻃㻶㼗㼕㼄㼗㼈㼊㼜㻵㼈㼄㼏㼌㼝㼄㼗㼌㼒㼑㻃㼒㼉㻃㼄㻃㻶㼘㼖㼗㼄㼌㼑㼄㼅㼏㼈㻃㻶㼒㼆㼌㼈㼗㼜㻃㼄㼑㼇㻃㻨㼑㼋㼄㼑㼆㼈㼐㼈㼑㼗㻃㼒㼉㻃㻦㼒㼕㼓㼒㼕㼄㼗㼈㻃㻹㼄㼏㼘㼈Environment HEX Map
In order to realize
a sustainable andprosperous society,
the Company will tackle
a variety of social andtechnological issues
toward 2050

Technology toEnergy Recovery
Purify Exhaust
Facilities
Gas
HigherDevelopment ofImprovement
Eﬃciency ofNext-Generationin FuelPower Generation
Fuel-Compatible
Eﬃciency
Facilities
Engines

Reduction ofCO₂ Emissions
fromProduction Acceleration ofGHG
Reduction
Combustion
ControlTechnology

Shift toDF Engines
ProvidingSynthetic
Fuel-Compatible
Engines

Utilization ofRenewable
Energy!"  

Modal Shift via
MaritimeTransport 㻨㻶㻪㻃㻶㼗㼕㼄㼗㼈㼊㼜㻵㼈㼄㼏㼌㼝㼄㼗㼌㼒㼑㻃㼒㼉㻃㼄㻃㻶㼘㼖㼗㼄㼌㼑㼄㼅㼏㼈㻃㻶㼒㼆㼌㼈㼗㼜㻃㼄㼑㼇㻃㻨㼑㼋㼄㼑㼆㼈㼐㼈㼑㼗㻃㼒㼉㻃㻦㼒㼕㼓㼒㼕㼄㼗㼈㻃㻹㼄㼏㼘㼈

Reduction of GHG from Products●Achievement of the world s highest level of combustion eﬃciency with ammonia-fueled andnext-generation gas-fueled engines●Enhancement of exhaust gas puriﬁcation technology●Provision of various synthetic fuel-compatible engines

Roadmap for Reduction ofGHG from Products

2022
MethanolBasic test⇒ Real machinetest

End of 2025
release target

2030

Net zero emissions

2040

2050

Late 2020s
release target

Ammonia

Basic test ⇒ Real machine test

Hydrogen

Basic test (basic test continued from FY2024)

Biofuels

Responding to customers trial requests (preparing for future fuel conversion)

Other

Consider implementing GHG-zero solutions such as fuel cells (FC), carbon capture, and renewable energy!"  

 㻨㻶㻪㻃㻶㼗㼕㼄㼗㼈㼊㼜㻵㼈㼄㼏㼌㼝㼄㼗㼌㼒㼑㻃㼒㼉㻃㼄㻃㻶㼘㼖㼗㼄㼌㼑㼄㼅㼏㼈㻃㻶㼒㼆㼌㼈㼗㼜㻃㼄㼑㼇㻨㼑㼋㼄㼑㼆㼈㼐㼈㼑㼗㻃㼒㼉㻃㻦㼒㼕㼓㼒㼕㼄㼗㼈㻃㻹㼄㼏㼘㼈

Reduction of CO₂ Emissions from Shipped Engines●In FY2050, 50% of the total shipments of engines arecompatible with new fuels●Conventional diesel engines are compatible with biofuels, etc.

Prospects for fuel conversion by 2050 (estimated)■Single Fuel

■LNG/DF ■NH3

■CH3OH ■H2（%）

1008060
4020020222030

!"2040

  

2050

 㻨㻶㻪㻃㻶㼗㼕㼄㼗㼈㼊㼜㻵㼈㼄㼏㼌㼝㼄㼗㼌㼒㼑㻃㼒㼉㻃㼄㻃㻶㼘㼖㼗㼄㼌㼑㼄㼅㼏㼈㻃㻶㼒㼆㼌㼈㼗㼜㻃㼄㼑㼇㻨㼑㼋㼄㼑㼆㼈㼐㼈㼑㼗㻃㼒㼉㻃㻦㼒㼕㼓㼒㼕㼄㼗㼈㻃㻹㼄㼏㼘㼈

Reduction of CO₂ Emissions from Production●Reduce CO₂ emissions from production
by 35% from FY2013 level in FY2025●Reduce CO₂ emissions from production
by at least 50% from FY2013 level in FY2030●Aim for net zero emissions in FY2050Mid- to long-term targets for
reducing CO₂ emissions from production
（%）

100％

100
65％
80
60

50％
Achievement ofnet zeroemissions

40
2000％
20132025

2030

2050

(base year)!"   㻨㻶㻪㻃㻶㼗㼕㼄㼗㼈㼊㼜㻵㼈㼄㼏㼌㼝㼄㼗㼌㼒㼑㻃㼒㼉㻃㼄㻃㻶㼘㼖㼗㼄㼌㼑㼄㼅㼏㼈㻃㻶㼒㼆㼌㼈㼗㼜㻃㼄㼑㼇㻨㼑㼋㼄㼑㼆㼈㼐㼈㼑㼗㻃㼒㼉㻃㻦㼒㼕㼓㼒㼕㼄㼗㼈㻃㻹㼄㼏㼘㼈

Reduction of CO₂ Emissions from Logistics
Modal shift

Milk run●Engine shipments from dedicated berths at the Himeji Factory●Use rail container transportation●Cyclic collection of delivered parts

Company BCompany CCompany DCompany AProductionplant!"   㻨㻶㻪㻃㻶㼗㼕㼄㼗㼈㼊㼜㻵㼈㼄㼏㼌㼝㼄㼗㼌㼒㼑㻃㼒㼉㻃㼄㻃㻶㼘㼖㼗㼄㼌㼑㼄㼅㼏㼈㻃㻶㼒㼆㼌㼈㼗㼜㻃㼄㼑㼇㻨㼑㼋㼄㼑㼆㼈㼐㼈㼑㼗㻃㼒㼉㻃㻦㼒㼕㼓㼒㼕㼄㼗㼈㻃㻹㼄㼏㼘㼈

Improving Safety and Personnel Strategy
Safety initiatives

Strengthening, expanding and fostering human capital

The Company places the highest priority on ensuringsafety and health in all its business activities andpromotes creating a safe and comfortable working
environment.

The Company will accelerate investment in human resources,
which is the most important asset for realizing the Company s purpose.

●Fostering a safety culture●Promotion of health management●Human capital management
Securing versatile human resources for new business areas
Fostering advanced professional human resourcesand next-generation leaders●Promoting diversity
Providing opportunities to utilize diverse human resources
and maximize their capabilities●Respect for human rights
Fostering a culture and promoting activities that respect
the human rights of all people involved in business activities●Promotion of work-life balance
Fostering work-style reform
Promotion of creating a rewarding work environment●Social contribution activities
Continue food bank activities, zero marine waste activities,
and social contribution activities!"   㻨㻶㻪㻃㻶㼗㼕㼄㼗㼈㼊㼜㻵㼈㼄㼏㼌㼝㼄㼗㼌㼒㼑㻃㼒㼉㻃㼄㻃㻶㼘㼖㼗㼄㼌㼑㼄㼅㼏㼈㻃㻶㼒㼆㼌㼈㼗㼜㻃㼄㼑㼇㻃㻨㼑㼋㼄㼑㼆㼈㼐㼈㼑㼗㻃㼒㼉㻃㻦㼒㼕㼓㼒㼕㼄㼗㼈㻃㻹㼄㼏㼘㼈

Governance ReformCorporate governance policies
The Company believes that it is important to conduct businessactivities in a highly transparent manner and act in a fair andsincere manner promptly.
●Strengthening corporate governance●Ensuring thorough compliance●Strengthening risk management●Organizational culture reform!"  

 

POWER ! FOR ALL beyond 2030
Performance Target andInvestment Plan㻳㼈㼕㼉㼒㼕㼐㼄㼑㼆㼈㻃㻷㼄㼕㼊㼈㼗㻃㼄㼑㼇㻃㻬㼑㼙㼈㼖㼗㼐㼈㼑㼗㻃㻳㼏㼄㼑Management Target (TARGET 2030)
FY2021 Net sales 57.6 billion yen
Operating income 2.1 billion yen
FY2030 Net sales 80.0 billion yen
Operating income 4.0 billion yen【Consolidated Financial Results】(Million yen）

Net sales

Operating income

FY2021

57,5992,092

FY203080,0004,000Management Target (TARGET 2050)
FY2050 Net sales 120.0 billion yen
Operating income 24.0 billion yen
Targets: Ratio of engines that use new fuels is 50% or more;
Ratio of servitization business sales is 40% or more;
Operating income ratio of 20%【Consolidated Financial Results】
FY2050(Million yen）

Net sales

Operating income

120,000

24,000!"   㻳㼈㼕㼉㼒㼕㼐㼄㼑㼆㼈㻃㻷㼄㼕㼊㼈㼗㻃㻃䇻㻃㻃㻬㼑㼙㼈㼖㼗㼐㼈㼑㼗㻃㻳㼏㼄㼑Investment in Growth Infrastructure

gintal●Double capital investment●Construct a new fuel-compatible plant●Increase in human capital investment overthe next ﬁve years, including training ofnext-generation managers●Expand group size to
1,400-employee level by 2030

tot
enyen
mst ioneInv bill50

Other technology
developments

Production
enhancement

２０２1

Other technology
developments

Investment ingrowth businesses

Intangible assets(including humancapital investment)

Investment innet zero emissions

Production
enhancement2023-２０２７!"   㻳㼈㼕㼉㼒㼕㼐㼄㼑㼆㼈㻃㻷㼄㼕㼊㼈㼗㻃㻃䇻㻃㻃㻬㼑㼙㼈㼖㼗㼐㼈㼑㼗㻃㻳㼏㼄㼑Management Target (Operating Income)Aiming to achieve TARGET 2030,achieving operating income of
4 billion yen in FY2030(Billion yen)

8
7
65
43
2
12



FY2030  DX promotion

Production
enhancement!"

Investment for net
zero emissions

Servitization business

Strengthening sales andreducing costs

FY202104 㻳㼈㼕㼉㼒㼕㼐㼄㼑㼆㼈㻃㻷㼄㼕㼊㼈㼗㻃㻃䇻㻃㻃㻬㼑㼙㼈㼖㼗㼐㼈㼑㼗㻃㻳㼏㼄㼑
Shareholder Return
The Company s basic policy is tosecure proﬁts while making up-front investments tostrengthen its corporate structure in the future,and to continuously and stably
return proﬁts to shareholders.

!"   

TARGET 2050
Achieve net zero emissions
while accelerating selling services
as a power supply company thatleads to the future

POWER ! FOR ALL beyond 2030

These materials contain statements relating to future earnings and business strategy, etc. Inherent in thesestatements are risk and uncertainty; they form no guarantee of future performance.
Please be aware that actual results may differ significantly from forecasts, due to changes in the businessenvironment, etc.
Furthermore, information relating to companies other than the Company or the Company group, etc., contained here
has been taken from publicly available information, etc. No verification of any kind has been undertaken by theCompany, and no guarantee is offered regarding the accuracy orappropriateness of such information.
The information contained in these materials is intended only for purposes of provision of information, and not forsolicitation to purchase securities.