DAIHEN : Consolidated Financial Results for the Three Months Ended June 30,2021

Consolidated Financial Results

for the Three Months Ended June 30, 2021

[Japanese GAAP]

August 5, 2021

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: August 6, 2021

Scheduled date of commencing dividend payments: -

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 Three Months Ended June 30, 2021 (April 1, 2021 - June 30, 2021)

(1) Consolidated Operating Results (cumulative)	(% 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, 2021			34,527	13.0		3,107	170.0		3,565	70.7		2,406	64.1
June 30, 2020			30,546	(0.3)		1,150	101.9		2,088	181.2		1,466	262.1
(Note) Comprehensive		income: Three months ended June 30, 2021: 4,047 million yen [320.4%]
			Three months ended June 30, 2020: 962 million yen [52.4%]
			Basic earnings		Diluted
				earnings
			per share
					per share
Three months ended			Yen			Yen
June 30, 2021		97.50			-
June 30, 2020		59.41			-
(2) Consolidated Financial Position
			Total assets		Net assets	Equity ratio
				Million yen		Million yen		%
As of June 30, 2021		177,144		99,132		52.7
As of March 31, 2021		175,132		96,921		52.1

(Reference) Equity: As of June 30, 2021: 93,399 million yen As of March 31, 2021: 91,174 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
	-	42.50		-	47.50	90.00
March 31, 2021
Fiscal year ending		-
March 31, 2022
Fiscal year ending
March 31, 2022			50.00		-	50.00	100.00
(Forecast)

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

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
							parent
First half	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
72,000	14.2	5,500	49.4	5,700	17.9	4,000	27.8	162.05
Full year	155,000	6.8	13,200	8.3	13,800	0.3	9,500	0.9	384.87

(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: - (

)

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 (3) Notes to
2. 
   Quarterly Consolidated Financial Statements (Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements)" on page 8 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: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None

(Note) For details, please see "2. Quarterly Consolidated Financial Statements and Principal Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)" on pages 8 and 9 of the attachments.

(4) Total number of issued shares (common shares)

1)	Total number of issued shares at the end of the period (including treasury shares):
	June 30, 2021:	27,103,291 shares
	March 31, 2021:	27,103,291 shares
2)	Total number of treasury shares at the end of the period:
	June 30, 2021:	2,419,967 shares
	March 31, 2021:	2,419,521 shares
3) Average number of shares during the period:
	Three months ended June 30, 2021:	24,683,494 shares
	Three months ended June 30, 2020:	24,681,401 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 3 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 ..............................................................................................................	3
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ............	3
2. Quarterly Consolidated Financial Statements and Principal Notes ................................................................	4
(1)	Quarterly Consolidated Balance Sheets .....................................................................................................	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income .............................................	6
(3)	Notes to Quarterly Consolidated Financial Statements ..............................................................................	8
	(Notes on going concern assumption) ......................................................................................................	8
	(Notes in case of significant changes in shareholders' equity) ................................................................	8
	(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
	statements) ................................................................................................................................................	8
	(Changes in accounting policies) .............................................................................................................	8
	(Segment information, etc.) ......................................................................................................................	9

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1. Qualitative Information on Quarterly Financial Results

1. Explanation of Operating Results
   The DAIHEN Group's performance for the three months ended June 30, 2021 was net sales of 34,527 million yen (up 13.0% year-on-year), due to strong investment related to semi-conductors and automobiles. In income results, the increase in net sales and the effectiveness of cost reductions resulted in operating profit of 3,107 million yen (up 1,956 million yen year-on-year), ordinary profit of 3,565 million yen (up 1,476 million yen year-on-year), and profit attributable to owners of parent of ¥2,406 million yen (up 940 million yen year-on- year).
   The performance of each segment is as follows.

1. Power Products Business
   As a result of strong investment in the replacement of power distribution products, net sales was 14,223 million yen (up 3.4% year-on-year) and operating profit was 936 million yen (up 18.0% year-on-year).
2. Welding & Mechatronics Business
   In addition to an increase in EV-related investment in China, investment in production automation recovered in Europe, resulting in net sales of 9,789 million yen (up 32.0% year-on-year), and operating profit was 956 million yen (year-on-year improvement of 1,114 million yen).
3. Semiconductor & FPD Related Business
   Due to the expansion of investment against the background of the full-scale dissemination of 5G and a global shortage of semiconductors, net sales was 10,469 million yen (up 12.2% year-on-year), and operating profit was 2,106 million yen (up 32.9% year-on-year).
4. Other
   Net sales was 47 million yen and operating profit was 18 million yen. There were no significant changes from the corresponding period of the previous year.
   (Reference) Performance by Segment

						(Million yen)
Segment	Orders Received	Net Sales	Operating Profit
Amount	% change	Amount	% change	Amount	% change
Power Products Business	16,135	-3.5%	14,223	+3.4%	936	+18.0%
Welding & Mechatronics	11,117	+36.6%	9,789	+32.0%	956	-
Business
Semiconductor & FPD	13,624	+54.5%	10,469	+12.2%	2,106	+32.9%
Related Business
Other	47	-8.2%	47	-8.2%	18	+8.8%
Company Total	40,925	+21.3%	34,527	+13.0%	3,107	+170.0%

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