DAIHEN : Consolidated Financial Results for the Six Months Ended September 30, 2022

Consolidated Financial Results

for the Six Months Ended September 30, 2022

[Japanese GAAP]

November 2, 2022

Company name: DAIHEN Corporation

Stock exchange listing: Tokyo Stock Exchange, Fukuoka Stock Exchange

Stock exchange code: 6622

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

Representative: Shoichiro Minomo, President and Chief Executive Officer

Contact: Shigeo Ozawa, General Manager, Finance & Accounting Department, Planning Division

Phone: [phone]

Scheduled date of filing quarterly securities report: November 4, 2022

Scheduled date of commencing dividend payments: December 5, 2022

Availability of supplementary explanatory materials on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

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

1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022 - September 30,

2022)
(1) Consolidated Operating Results (cumulative)	(% indicates changes from the previous corresponding period.)
				Net sales		Operating profit		Ordinary profit		Profit attributable to
							owners of parent
	Six months ended			Million yen	%	Million yen	%		Million yen	%		Million yen	%
	September 30, 2022			83,186	15.7		7,354	15.3		8,213	15.1		6,107	18.1
	September 30, 2021			71,892	14.1		6,379	73.2		7,133	47.6		5,172	65.3
	(Note) Comprehensive		income: Six months	ended September 30, 2022: 9,626 million yen [41.5%]
				Six months ended September 30, 2021: 6,802 million yen [90.1%]
				Basic earnings		Diluted
					earnings
				per share
						per share
	Six months ended			Yen			Yen
	September 30, 2022		248.91			-
	September 30, 2021		209.54			-
(2) Consolidated Financial Position
				Total assets		Net assets	Equity ratio
					Million yen		Million yen		%
	As of September 30, 2022	201,474		114,288		53.8
	As of March 31, 2022		194,801		105,636		51.2

(Reference) Equity: As of September 30, 2022: 108,399 million yen As of March 31, 2022: 99,693 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
	-	50.00		-	60.00	110.00
March 31, 2022
Fiscal year ending		-	75.00
March 31, 2023
Fiscal year ending
March 31, 2023					-	75.00	150.00
(Forecast)

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

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
							parent
Full year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
180,000	12.1	16,500	16.3	17,000	7.7	12,000	9.2	489.07

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

* Notes:

1. Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation):

Newly included: - (), Excluded: - ()

(Note) Even though there are no changes in specified subsidiaries resulting in changes in scope of consolidation, DAIHEN System Corporation, which used to be a consolidated subsidiary, was excluded from the scope of consolidation from the three months ended June 30, 2022 because it was dissolved as of April 1, 2022, due to an absorption-type merger, in which the Company was the surviving company.

1. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: Yes (Note) For details, please see "2. Quarterly Consolidated Financial Statements and Principal Notes (4) Notes to
2. 
   Quarterly Consolidated Financial Statements (Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements)" on page 10 of the attachments.
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
5. Total number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares):

September 30, 2022:	27,103,291 shares
March 31, 2022:	27,103,291 shares
2) Total number of treasury shares at the end of the period:
September 30, 2022:	2,563,601 shares
March 31, 2022:	2,567,039 shares
3) Average number of shares during the period:
Six months ended September 30, 2022:	24,537,994 shares
Six months ended September 30, 2021:	24,685,131 shares

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of financial results forecast and other notes
  The earnings forecasts and other forward-looking statements contained in this report are based on information available to the Company on the date of this report's release and certain premises that the Company deems to be reasonable. Actual financial results, etc. may differ significantly due to a wide range of factors. For details on the earnings forecasts of the Company, please see "1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 4 of the attachments.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results .........................................................................	2
(1)	Explanation of Operating Results .......................................................................................................	2
(2)	Explanation of Financial Position .......................................................................................................	4
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .....	4
2. Quarterly Consolidated Financial Statements and Principal Notes .........................................................	5
(1)	Quarterly Consolidated Balance Sheets ..............................................................................................	5
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ......................................	7
(3)	Quarterly Consolidated Statements of Cash Flows...............................................................................	9
(4)	Notes to Quarterly Consolidated Financial Statements .....................................................................	10
	(Notes on going concern assumption) .............................................................................................	10
	(Notes in case of significant changes in shareholders' equity) .......................................................	10
	(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
	statements).......................................................................................................................................	10
	(Additional information) .................................................................................................................	10
	(Segment information, etc.) .............................................................................................................	11
	(Business combination) ...................................................................................................................	13

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1. Qualitative Information on Quarterly Financial Results

1. Explanation of Operating Results
   The performance of DAIHEN Corporation (the "Company") and its subsidiaries (collectively, the "DAIHEN Group) for the six months ended September 30, 2022 was orders received of 100,944 million yen (up 19.4% year-on-year) and net sales of 83,186 million yen (up 15.7% year-on-year), due to the expansion of investment in production automation and EV-related investment in addition to a high level of demand for semiconductor manufacturing equipment. In income results, the increase in net sales and cost reduction efforts resulted in operating profit of 7,354 million yen (up 974 million yen year-on-year), ordinary profit of 8,213 million yen (up 1,080 million yen year-on-year), and profit attributable to owners of parent of 6,107 million yen (up 935 million yen year-on-year). Both net sales and income results reached an all-time high for the first half of a fiscal year.
   The performance of each segment is as follows.

1. Power Products Business
   Owing to an increase in the demand for renewable energy power generation facilities in addition to strong investment in the replacement of power distribution products, net sales were 31,367 million yen (up 10.7% year- on-year). Meanwhile, operating profit was 1,733 million yen (down 227 million yen year-on-year) due to a large impact of soaring prices of materials.
2. Welding & Mechatronics Business
   Owing to the expansion of demand associated with full-fledgedEV-related investment, in addition to recovery in investment in production automation in Japan and Europe, net sales were 24,708 million yen (up 11.2% year- on-year). Profitability declined temporarily in the first half of the period under review due to the impact of lockdowns in China but recovered in the second half, resulting in an operating profit of 2,121 million yen (up 4 million yen year-on-year). This is roughly the same level as the corresponding period of the previous year.
3. Semiconductor & FPD Related Business
   Amid restricted production due to shortages of semiconductors and other parts, the Company met brisk demand by striving to secure parts through design changes and adoption of substitute products, as well as making company-wide efforts to increase production. As a result, net sales were 27,051 million yen (up 27.3% year-on- year), and operating profit was 5,413 million yen (up 1,333 million yen year-on-year).
4. Other
   Net sales were 91 million yen and operating profit was 32 million yen. There were no significant changes from the corresponding period of the previous year.

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