Denyo : Summary of Consolidated Financial Results for the Six Months Ended September 30,2021 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

		Summary of Consolidated Financial Results
		for the Six Months Ended September 30, 2021
		(Based on Japanese GAAP)
					November 11, 2021
Company name:	Denyo Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	6517	URL https://www.denyo.co.jp/
Representative:	President		Shoichi Shiratori
Inquiries:	Director & Senior Executive Officer	Makoto Tanabe	TEL [phone]
Scheduled date to file Quarterly Securities Report:	November 12, 2021
Scheduled date to commence dividend payments:	December 9, 2021
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
			Net sales		Operating profit		Ordinary profit	Profit attributable to
					owners of parent
		Millions of yen		% Millions of yen	%	Millions of yen	%	Millions of yen	%
Six months ended September 30, 2021		24,836	(2.0)	1,615	(19.8)			1,689	(22.0)		1,173	(18.6)
Six months ended September 30, 2020		25,346	(16.0)	2,014	(24.0)			2,167	(18.1)		1,442	(21.1)
			Earnings per share	Diluted earnings per share
					Yen				Yen
Six months ended September 30, 2021				56.25					-
Six months ended September 30, 2020				69.17					-
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio
			Millions of yen	Millions of yen				%
As of September 30, 2021				78,458			63,054				77.4
As of March 31, 2021				79,057			61,564				75.1
2. Cash dividends
						Annual dividends per share
		1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
			Yen		Yen			Yen		Yen		Yen
Year ended March 31, 2021				-		22.00				-		25.00		47.00
Year ending March 31, 2022				-		22.00
Year ending March 31, 2022 (Forecast)									-		25.00		47.00
3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
										Percentages indicate year-on-year changes
	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%		Yen
Full year	53,000	(3.6)	3,900	(26.9)	4,100 (27.4)		2,750 (28.8)		131.81

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of September 30, 2021	22,859,660	shares	As of March 31, 2021	22,859,660	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	1,992,142	shares	As of March 31, 2021	2,003,959	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	20,860,102	shares	Six months ended September 30, 2020	20,848,623	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	21,913	23,613
Notes and accounts receivable - trade	17,436	-
Notes and accounts receivable - trade, and contract assets	-	13,792
Electronically recorded monetary claims - operating	3,426	3,543
Securities	999	999
Merchandise and finished goods	4,636	5,560
Work in process	1,566	1,662
Raw materials and supplies	4,073	4,625
Other	396	340
Allowance for doubtful accounts	(4)	(4)
Total current assets	54,443	54,133
Non-current assets
Property, plant and equipment
Buildings and structures, net	7,145	7,163
Machinery, equipment and vehicles, net	2,526	2,273
Land	5,047	5,051
Construction in progress	20	15
Other, net	225	240
Total property, plant and equipment	14,964	14,745
Intangible assets	583	633
Investments and other assets
Investment securities	8,750	8,617
Other	317	331
Allowance for doubtful accounts	(2)	(2)
Total investments and other assets	9,065	8,946
Total non-current assets	24,613	24,324
Total assets	79,057	78,458

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			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	8,773	7,578
Electronically recorded obligations - operating	1,991	2,246
Short-term borrowings	1,317	210
Accrued expenses	514	477
Income taxes payable	978	448
Provision for bonuses	637	719
Provision for bonuses for directors (and other officers)	83	37
Provision for product warranties	126	133
Other	1,010	731
Total current liabilities	15,434	12,582
Non-current liabilities
Long-term borrowings	-	783
Lease obligations	267	277
Deferred tax liabilities	1,358	1,335
Retirement benefit liability	401	391
Other	31	31
Total non-current liabilities	2,058	2,820
Total liabilities	17,493	15,403
Net assets
Shareholders' equity
Share capital	1,954	1,954
Capital surplus	1,779	1,779
Retained earnings	54,766	55,397
Treasury shares	(2,350)	(2,335)
Total shareholders' equity	56,149	56,796
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,643	3,612
Foreign currency translation adjustment	(417)	348
Remeasurements of defined benefit plans	(10)	(5)
Total accumulated other comprehensive income	3,215	3,956
Non-controlling interests	2,198	2,301
Total net assets	61,564	63,054
Total liabilities and net assets	79,057	78,458

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2020	September 30, 2021
Net sales	25,346	24,836
Cost of sales	19,529	19,268
Gross profit	5,817	5,567
Selling, general and administrative expenses	3,802	3,952
Operating profit	2,014	1,615
Non-operating income
Interest income	24	20
Dividend income	83	82
Rental income from buildings	38	41
Foreign exchange gains	38	-
Other	28	27
Total non-operating income	213	171
Non-operating expenses
Interest expenses	29	26
Sales discounts	11	-
Share of loss of entities accounted for using equity method	8	2
Foreign exchange losses	-	57
Other	11	10
Total non-operating expenses	60	96
Ordinary profit	2,167	1,689
Extraordinary income
Gain on sale of non-current assets	-	0
Gain on sale of investment securities	-	28
Total extraordinary income	-	29
Extraordinary losses
Loss on disposal of non-current assets	0	37
Total extraordinary losses	0	37
Profit before income taxes	2,166	1,682
Income taxes - current	658	515
Income taxes - deferred	(3)	(8)
Total income taxes	654	507
Profit	1,512	1,174
Profit attributable to
Profit attributable to owners of parent	1,442	1,173
Profit attributable to non-controlling interests	70	1
Other comprehensive income
Valuation difference on available-for-sale securities	339	(30)
Foreign currency translation adjustment	(307)	898
Remeasurements of defined benefit plans, net of tax	6	5
Share of other comprehensive income of entities accounted	(0)	(0)
for using equity method
Total other comprehensive income	38	872
Comprehensive income	1,550	2,047
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	1,551	1,913
Comprehensive income attributable to non-controlling interests	(0)	134

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