Denyo : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022 (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 Three Months Ended June 30, 2022
		(Based on Japanese GAAP)
				August 4, 2022
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:	August 5, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

(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	%
Three months ended June 30, 2022		12,791	6.8	336	(60.3)			410	(52.2)	260	(55.1)
Three months ended June 30, 2021		11,973	(8.4)	847	(22.7)			857	(29.4)	581	(31.3)
			Earnings per share	Diluted earnings per share
					Yen					Yen
Three months ended June 30, 2022				12.59						-
Three months ended June 30, 2021				27.87						-
(2) Consolidated financial position
			Total assets			Net assets			Equity ratio
			Millions of yen	Millions of yen						%
As of June 30, 2022			80,530			64,128				76.6
As of March 31, 2022			80,774			63,760				76.0
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, 2022			-			22.00					-			25.00		47.00
Year ending March 31, 2023			-
Year ending March 31, 2023 (Forecast)					23.00					-			25.00		48.00
3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
											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
Six months ending	26,000	4.7	1,300	(19.5)	1,500	(11.2)		1,000	(14.8)		48.26
September 30, 2022
Full year	57,500	4.2	3,900	6.7	4,200		4.2		2,800	1.7		135.14

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2022 (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:	No
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 June 30, 2022	22,859,660	shares	As of March 31, 2022	22,859,660	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	2,137,378	shares	As of March 31, 2022	2,140,078	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	20,719,612	shares	Three months ended June 30, 2021	20,855,713	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	22,358	23,649
Notes receivable - trade	4,102	2,873
Electronically recorded monetary claims - operating	4,306	4,770
Accounts receivable - trade	11,856	8,950
Securities	999	999
Merchandise and finished goods	5,086	5,210
Work in process	1,724	2,607
Raw materials and supplies	6,049	7,160
Other	392	518
Allowance for doubtful accounts	(4)	(3)
Total current assets	56,872	56,735
Non-current assets
Property, plant and equipment
Buildings and structures, net	7,140	7,225
Machinery, equipment and vehicles, net	2,011	1,926
Land	5,066	5,074
Construction in progress	319	323
Other, net	226	228
Total property, plant and equipment	14,764	14,778
Intangible assets	694	697
Investments and other assets
Investment securities	8,092	7,941
Deferred tax assets	226	228
Other	127	150
Allowance for doubtful accounts	(2)	(2)
Total investments and other assets	8,443	8,318
Total non-current assets	23,902	23,794
Total assets	80,774	80,530

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			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	9,026	8,039
Electronically recorded obligations - operating	2,554	2,583
Short-term borrowings	210	210
Accrued expenses	553	1,142
Income taxes payable	404	202
Provision for bonuses	642	386
Provision for bonuses for directors (and other officers)	66	16
Provision for product warranties	98	93
Other	713	969
Total current liabilities	14,269	13,643
Non-current liabilities
Long-term borrowings	856	956
Lease liabilities	283	295
Deferred tax liabilities	1,113	1,027
Retirement benefit liability	458	446
Other	31	31
Total non-current liabilities	2,744	2,758
Total liabilities	17,013	16,401
Net assets
Shareholders' equity
Share capital	1,954	1,954
Capital surplus	1,788	1,788
Retained earnings	56,500	56,223
Treasury shares	(2,598)	(2,596)
Total shareholders' equity	57,645	57,370
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,209	3,133
Foreign currency translation adjustment	591	1,161
Remeasurements of defined benefit plans	(33)	(18)
Total accumulated other comprehensive income	3,766	4,277
Non-controlling interests	2,348	2,481
Total net assets	63,760	64,128
Total liabilities and net assets	80,774	80,530

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

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2021	June 30, 2022
Net sales	11,973	12,791
Cost of sales	9,176	10,283
Gross profit	2,797	2,508
Selling, general and administrative expenses	1,950	2,171
Operating profit	847	336
Non-operating income
Interest income	10	11
Dividend income	59	82
Rental income from buildings	20	20
Other	17	5
Total non-operating income	108	120
Non-operating expenses
Interest expenses	12	5
Foreign exchange losses	60	2
Share of loss of entities accounted for using equity method	19	28
Other	4	9
Total non-operating expenses	97	46
Ordinary profit	857	410
Extraordinary income
Gain on sale of non-current assets	0	-
Gain on sale of investment securities	25	14
Total extraordinary income	26	14
Extraordinary losses
Loss on disposal of non-current assets	35	0
Total extraordinary losses	35	0
Profit before income taxes	848	424
Income taxes - current	307	236
Income taxes - deferred	(41)	(61)
Total income taxes	265	174
Profit	582	249
Profit attributable to
Profit attributable to owners of parent	581	260
Profit (loss) attributable to non-controlling interests	1	(11)
Other comprehensive income
Valuation difference on available-for-sale securities	(211)	(75)
Foreign currency translation adjustment	868	714
Remeasurements of defined benefit plans, net of tax	2	15
Share of other comprehensive income of entities accounted	0	(0)
for using equity method
Total other comprehensive income	660	654
Comprehensive income	1,243	904
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	1,122	771
Comprehensive income attributable to non-controlling interests	120	133

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