Daiken : Consults for the Fiscal Year Ended March 31. 2023 〔Under Japanese GAAP〕（Consolidated Accounting）(303KB)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 11, 2023

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

(Under Japanese GAAP)

Company name:	DAIKEN CORPORATION
Listing:	Tokyo Stock Exchange
Securities code:	7905
URL:	https://www.daiken.jp/
Representative:	Masanori Okuda, Representative Director, President
Inquiries:	Yasunori Koga, General Manager Accounting Department
Telephone:	[phone]
Scheduled date of annual general meeting of shareholders:	June 23, 2023
Scheduled date to commence dividend payments:	June 26, 2023
Scheduled date to file annual securities report:	June 26, 2023
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results				(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2023	228,826		2.4	9,856	(43.2)	13,008	(30.5)	10,325	31.2
March 31, 2022	223,377		12.1	17,361	97.8	18,725	88.5	7,872	40.1

Note: Comprehensive income	For the fiscal year ended March 31, 2023:	¥14,787 million	[(13.6)%]
		For the fiscal year ended March 31, 2022:	¥17,123 million	[4.5 %]
	Basic earnings	Diluted earnings	Return on equity	Ratio of ordinary	Ratio of operating
	per share	per share	profit to total assets	profit to net sales
Fiscal year ended		Yen	Yen		%		%	%
March 31, 2023		396.10	－		12.9		7.0	4.3
March 31, 2022		302.18	－		10.9		10.5	7.8

Reference:	Share of profit (loss) of entities accounted for using equity method
	For the fiscal year ended March 31, 2023:	¥1,914 million
	For the fiscal year ended March 31, 2022:	¥46 million
(2) Consolidated financial position
		Total assets		Net assets		Equity-to-asset ratio	Net assets per share
As of		Millions of yen		Millions of yen		%	Yen
March 31, 2023	185,797		92,318		45.0	3,203.58
March 31, 2022	183,391		90,563		41.7	2,935.31
Reference:	Equity
	As of March 31, 2023:	¥83,523 million
	As of March 31, 2022:	¥76,487 million

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2023	(107)	575	247	15,936
March 31, 2022	16,834	(6,636)	(10,737)	17,407

2. Cash dividends

		Annual dividends per share		Total cash		Ratio of
						Payout ratio	dividends to
	First	Second	Third	Fiscal		dividends
	Total	(Consolidated)	net assets
	quarter-end	quarter-end	quarter-end	year-end	(Total)
			(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Fiscal year ended	－	45.00	－	55.00	100.00	2,605	33.1	3.6
March 31, 2022
Fiscal year ended	－	50.00	－	60.00	110.00	2,867	27.8	3.6
March 31, 2023
Fiscal year ending		60.00		60.00	120.00		52.1
March 31, 2024	－	－
(Forecast)

3. Earnings forecast of consolidated financial results for fiscal year ending march 31, 2024 (From April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Profit per
		owners of parent	share
	Millions of	%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen	yen	yen	yen
Six months ending
114,000	(5.2)	2,800	(66.3)	4,200	(57.7)	1,900	(75.6)	72.88
September 30, 2023
Full year	235,000	2.7	8,000	(18.8)	10,900	(16.2)	6,000	(41.9)	230.13

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): Yes
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2023

As of March 31, 2022

27,080,043 shares

27,080,043 shares

1. Number of treasury shares at the end of the period

As of March 31, 2023

As of March 31, 2022

1,008,155 shares

1,022,456 shares

(iii) Average number of shares outstanding during the period

Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2022

26,068,349 shares

26,054,391 shares

* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

• Explanation for the appropriate use of performance forecasts and other special notes: (Cautionary note on forward-looking statement)
  The statements regarding forecast of financial results in this report are based on the information that is available to the Company, as well as certain assumptions that are deemed to be reasonable by management, and they are not meant to be a commitment by the Company. Therefore, there might be cases in which actual results differ materially from forecast values due to various factors.

		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	22,881	19,574
Notes receivable - trade	1,161	1,214
Electronically recorded monetary claims -	9,077	13,941
operating
Accounts receivable - trade	28,655	28,801
Contract assets	1,423	2,162
Merchandise and finished goods	20,212	22,167
Work in process	3,072	3,513
Raw materials and supplies	11,203	10,650
Other	4,729	5,372
Allowance for doubtful accounts	(132)	(161)
Total current assets	102,286	107,236
Non-current assets
Property, plant and equipment
Buildings and structures, net	11,970	8,874
Machinery, equipment and vehicles, net	19,166	14,508
Land	14,310	12,995
Construction in progress	1,292	912
Other, net	2,712	2,475
Total property, plant and equipment	49,451	39,765
Intangible assets
Goodwill	12,415	10,145
Software	1,165	1,360
Other	1,391	2,000
Total intangible assets	14,972	13,506
Investments and other assets
Investment securities	11,719	19,621
Retirement benefit asset	2,529	2,959
Deferred tax assets	1,033	1,263
Other	1,414	1,479
Allowance for doubtful accounts	(42)	(43)
Total investments and other assets	16,654	25,280
Total non-current assets	81,077	78,552
Deferred assets
Bond issuance costs	27	7
Total deferred assets	27	7
Total assets	183,391	185,797

		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	20,672	15,738
Electronically recorded obligations -	6,978	12,096
operating
Short-term borrowings	5,983	11,252
Current portion of bonds payable	8,000	－
Current portion of long-term borrowings	2,860	5,817
Lease liabilities	110	68
Accounts payable - other	19,434	21,313
Income taxes payable	1,325	698
Accrued consumption taxes	116	121
Provision for bonuses	2,723	2,383
Provision for product warranties	282	258
Provision for loss on litigation	27	－
Other	5,764	5,191
Total current liabilities	74,280	74,939
Non-current liabilities
Bonds payable	5,000	5,000
Long-term borrowings	6,360	7,500
Lease liabilities	184	62
Deferred tax liabilities	1,627	861
Provision for product warranties	691	609
Retirement benefit liability	3,573	3,426
Provision for loss on litigation	358	447
Negative goodwill	13	10
Other	738	622
Total non-current liabilities	18,547	18,539
Total liabilities	92,828	93,478
Net assets
Shareholders' equity
Share capital	15,300	15,300
Capital surplus	13,958	13,965
Retained earnings	38,501	46,089
Treasury shares	(1,364)	(1,345)
Total shareholders' equity	66,395	74,009
Accumulated other comprehensive income
Valuation difference on available-for-	3,924	2,902
sale securities
Deferred gains or losses on hedges	459	(40)
Foreign currency translation adjustment	4,380	4,934
Remeasurements of defined benefit plans	1,327	1,717
Total accumulated other comprehensive	10,091	9,513
income
Non-controlling interests	14,075	8,794
Total net assets	90,563	92,318
Total liabilities and net assets	183,391	185,797