Daihatsu Diesel Mfg : FY 2024 The First Quarter Financial Results (full text)

Consolidated Financial Results

for the Three Months Ended June 30, 2023

[Japanese GAAP]

July 27, 2023

Company name: Daihatsu Diesel Mfg. Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 6023

URL:https://www.dhtd.co.jp

Representative: Yoshinobu Hotta, President

Contact: Takashi Mizushina, Director

Phone: [phone]

Scheduled date of filing quarterly securities report: August 9, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Not available

Schedule of quarterly financial results briefing session: Not scheduled

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
June 30, 2023	17,626	25.2	450	3.2	659	15.8	467	(1.8)
June 30, 2022	14,078	20.8	436	352.5	570	320.2	475	136.2

(Note) Comprehensive income: Three months ended June 30, 2023: 495 million yen [(24.5)%] Three months ended June 30, 2022: 657 million yen [242.5%]

Basic earnings per share

Diluted earnings per share

Three months ended

Yen

Yen

June 30, 2023

14.80

-

June 30, 2022

15.04

-

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

As of June 30, 2023

Million yen

Million yen

%

95,119

45,336

47.6

As of March 31, 2023

95,377

45,724

47.9

(Reference) Equity: As of

June 30, 2023: 45,290 million yen

As of March 31, 2023: 45,678 million yen

2. Dividends

Annual dividends

1st quarter-end

2nd quarter-end

3rd quarter-end

Year-end

Total

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

March 31, 2023

-

0.00

-

28.00

28.00

Fiscal year ending

-

March 31, 2024

Fiscal year ending

March 31, 2024

0.00

-

19.00

19.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently: None

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

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable	Basic earnings
		to owners of parent	per share
First half	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
35,000	10.8	0	(100.0)	0	(100.0)	1,100	45.5	34.53
Full year	76,000	5.4	3,000	(16.7)	3,000	(18.0)	3,100	5.2	97.33

(Note) Revision to the financial results forecast announced most recently: None

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement

1. Changes in accounting policies due to the revision of accounting standards:No
2. Changes in accounting policies other than 1) above: No
3. Changes in accounting estimates: No
4. Retrospective restatement: No

1. Total number of issued shares (common shares)

1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2023: 31,850,000 shares

March 31, 2023: 31,850,000 shares

1. Total number of treasury shares at the end of the period: June 30, 2023: 280,235 shares
   March 31, 2023: 280,235 shares
2. Average number of shares during the period:

Three months ended June 30, 2023: 31,569,765 shares

Three months ended June 30, 2022: 31,631,523 shares

• These quarterly financial results are outside the scope of quarterly review procedures conducted by a certified public accountant or audit corporation.
• Explanation of the proper use of financial results forecast and other notes

The financial results forecasts and other forward-looking statements herein are based on information 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 "Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the attached material for the assumptions the financial results forecasts are based on, and notes on their use.

Table of Contents
1.	Qualitative Information on Quarterly Financial Results for the Period under Review	2
	(1)	Explanation of Operating Results	2
	(2)	Explanation of Financial Position	3
	(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ..	3
2.	Quarterly Consolidated Financial Statements and Primary Notes	4
	(1)	Quarterly Consolidated Balance Sheets	4
	(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	(3)	Notes to the Quarterly Consolidated Financial Statements	8
	(Notes on going concern assumption)	8
	(Notes in the case of significant changes in shareholders' equity)	8
	(Segment information, etc.)	8
3.	Supplementary Information	10
	(1)	Status of Production, Orders Received, and Sales	10

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1. Qualitative Information on Quarterly Financial Results for the Period under Review

(1) Explanation of Operating Results

During the three months under review (from April 1, 2023 to June 30, 2023), the Japanese economy showed a gradual recovery mainly in consumer spending, fueled by increased customer traffic and other favorable factors due to the relaxation of restrictions on social activities caused by COVID-19. Meanwhile, the future outlook remained uncertain as the depreciation of the yen and the increase in prices continued.

The world economy has been still unstable. This is because, for example, an economic recovery in China after the lifting of its zero-COVID policy has been slow due to a stagnant real estate market. In Europe, inflation pressure was still strong and financial policies remained uncertain.

In the shipbuilding and maritime industry, the primary industry in which the Company makes its sales, since the Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII; a system for rating ships based on the fuel efficiency) took effect in January 2023, there is a need for the early establishment of various environmental technologies, including the development of energy-saving technology, more efficient operation, and the shift to next-generation fuels.

Under such a corporate environment, the Group's sales have remained strong for large-sized engines and dual fuel engines mainly for container ships, while there has been a stable demand for maintenance. In research and development, in order to realize carbon neutrality in international maritime traffic, we have been working to develop innovative engines capable of responding to a variety of fuels toward early conversion to zero-emission fuels.

In the three months under review, consolidated net sales increased by 25.2% year-on-year to 17,626 million yen. In terms of profit, operating profit increased by 3.2% year-on-year to 450 million yen, ordinary profit increased by 15.8% year-on-year to 659 million yen, while profit attributable to owners of parent decreased by 1.8% year-on-year to 467 million yen.

Performance by business segment of the Company and the consolidated Group are as follows.

1. Marine-use

Net sales increased by 27.7% year-on-year to 15,650 million yen while segment income decreased by

10.0% year-on-year to 1,084 million yen, due to surging material prices and other factors despite increases in sales of engines and maintenance-related sales.

2. Land-use

Net sales increased by 39.9% year-on-year to 1,124 million yen and segment income of 29 million yen

was recorded (a segment loss of 286 million yen in the previous corresponding period) due to increases in sales of engines and maintenance-related sales.

Consequently, net sales for the segment increased by 28.4% year-on-year to 16,775 million yen, and segment income increased by 21.2% year-on-year to 1,113 million yen.

1. Industrial machinery-related
   In the aluminum wheel division, both net sales and segment income declined due to a decrease in sales volume.
2. Real estate leasing-related
   In real estate leasing-related, net sales increased slightly while segment income decreased.
3. Electricity sales-related
   In electricity sales-related, net sales decreased while segment income increased.
4. Precision parts-related
   In precision parts-related, both net sales and segment income decreased.

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Consequently, net sales for the segment decreased by 16.4% year-on-year to 851 million yen, and segment income decreased by 51.3% year-on-year to 59 million yen.

(2) Explanation of Financial Position

In assets as of the end of the first quarter under review, cash and deposits increased by 2,117 million yen from the end of the previous fiscal year to 28,744 million yen. Further, inventories rose by 2,548 million yen from the end of the previous fiscal year. Meanwhile, due to progress made in collection of trade receivables at the end of the previous fiscal year, notes and accounts receivable - trade, and contract assets decreased by 2,937 million yen. Other current assets decreased by 1,318 million yen due mainly to a decrease in consumption taxes refund receivable. As a result, total assets decreased by 257 million yen to 95,119 million yen from the end of the previous fiscal year.

In liabilities, notes and accounts payable - trade and electronically recorded obligations - operating in total increased by 959 million yen from the end of the previous fiscal year. Meanwhile, owing to scheduled payment, short-term borrowings and long-term borrowings in total decreased by 290 million yen. Also, income taxes payable decreased by 367 million yen due to payment of income tax. As a result, total liabilities increased by 130 million yen from the end of previous fiscal year to 49,783 million yen.

In net assets, retained earnings decreased by 416 million yen due to the payment of cash dividends and other factors. As a result, total net assets decreased by 388 million yen from the end of the previous fiscal year to 45,336 million yen. Equity ratio at the end of the first quarter under review decreased by 0.3 points from the end of the previous fiscal year to 47.6%.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information

As to the consolidated financial results forecast for the fiscal year ending March 31, 2024, no revisions have been made to the forecast announced on June 29, 2023.

The forecasts stated herein are based on information available to the Company as of the date of publication of this document. Actual results may differ from these forecasts due to a wide range of factors that may arise in the future.

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