Denyo : Summary of Consolidated Financial Results for the Year Ended March 31, 2021

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 Year Ended March 31, 2021
		(Based on Japanese GAAP)
													May 13, 2021
Company name:	Denyo Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	6517	URL https://www.denyo.co.jp/
Representative:	President			Shoichi Shiratori
Inquiries:	Senior Executive Officer		Makoto Tanabe	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	June 29, 2021
Scheduled date to file Securities Report:		June 29, 2021
Scheduled date to commence dividend payments:		June 8, 2021
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:			Yes	(for analysts and institutional investors)
						(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
(1) Consolidated operating results							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	%
Year ended March 31, 2021	55,006	(12.5)	5,332	(12.0)		5,645	(9.0)	3,860	(5.2)
Year ended March 31, 2020	62,887	13.2	6,057	44.2		6,202	35.1		4,071	28.6
		Earnings per share	Diluted earnings per	Profit attributable to	Ordinary profit/total Operating profit/net
			share		owners of			assets			sales
					parent/equity
		Yen		Yen			%					%			%
Year ended March 31, 2021	185.13	-			6.7					7.3			9.7
Year ended March 31, 2020	194.32	-			7.4					8.3			9.6
(2) Consolidated financial position
		Total assets		Net assets		Equity ratio	Net assets per share
		Millions of yen	Millions of yen				%					Yen
As of March 31, 2021		79,057			61,564				75.1				2,846.49
As of March 31, 2020		75,626			58,354				74.1				2,689.54
(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
		Millions of yen	Millions of yen	Millions of yen	Millions of yen
Year ended March 31, 2021		4,941			(1,748)				(1,086)				22,913
Year ended March 31, 2020		7,272			(874)				(1,528)				21,054
2. Cash dividends
			Annual dividends per share				Total cash	Dividend payout		Ratio of dividends
										to net assets
									dividends (Total) ratio (Consolidated)
		1st quarter-end 2nd quarter-end	3rd quarter-end Fiscal year-end	Total		(Consolidated)
		Yen	Yen	Yen		Yen	Yen Millions of yen	%			%
Year ended March 31, 2020	-	22.00	-		24.00	46.00		999		23.7			1.7
Year ended March 31, 2021	-	22.00	-		25.00	47.00		1,018		25.4			1.7
Year ending March 31, 2022	-	22.00	-		25.00	47.00				29.7
(Forecast)

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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
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
26,000	2.6	2,000	(0.7)	2,200	1.5		1,500	4.0	71.92
September 30, 2021
Full year	56,000	1.8	4,700	(11.9)	5,000	(11.4)		3,300	(14.5)	158.23
4. Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) 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

(3) Number of issued shares (common shares)

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

	As of March 31, 2021	22,859,660	shares	As of March 31, 2020	22,859,660	shares
Number of treasury shares at the end of the period
	As of March 31, 2021	2,003,959	shares	As of March 31, 2020	2,014,745	shares
Average number of shares during the period
	Year ended March 31, 2021	20,850,660	shares	Year ended March 31, 2020	20,952,519	shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	20,054	21,913
Notes and accounts receivable - trade	18,193	17,436
Electronically recorded monetary claims - operating	2,921	3,426
Securities	999	999
Merchandise and finished goods	3,920	4,636
Work in process	1,409	1,566
Raw materials and supplies	5,144	4,073
Other	293	396
Allowance for doubtful accounts	(4)	(4)
Total current assets	52,932	54,443
Non-current assets
Property, plant and equipment
Buildings and structures	13,040	13,533
Accumulated depreciation	(6,080)	(6,387)
Buildings and structures, net	6,960	7,145
Machinery, equipment and vehicles	7,428	8,388
Accumulated depreciation	(5,545)	(5,862)
Machinery, equipment and vehicles, net	1,883	2,526
Land	4,835	5,047
Construction in progress	601	20
Other	2,018	2,001
Accumulated depreciation	(1,854)	(1,776)
Other, net	164	225
Total property, plant and equipment	14,445	14,964
Intangible assets
Right-of-use assets	565	519
Software	45	47
Other	9	16
Total intangible assets	620	583
Investments and other assets
Investment securities	7,328	8,750
Long-term loans receivable	6	3
Deferred tax assets	171	187
Other	124	125
Allowance for doubtful accounts	(3)	(2)
Total investments and other assets	7,628	9,065
Total non-current assets	22,694	24,613
Total assets		75,626	79,057

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			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	8,888	8,773
Electronically recorded obligations - operating	1,985	1,991
Short-term borrowings	210	1,317
Accrued expenses	541	514
Income taxes payable	1,062	978
Provision for bonuses	638	637
Provision for bonuses for directors (and other officers)	81	83
Provision for product warranties	103	126
Other	741	1,010
Total current liabilities	14,252	15,434
Non-current liabilities
Long-term borrowings	1,088	-
Lease obligations	282	267
Long-term accounts payable - other	81	-
Deferred tax liabilities	960	1,358
Retirement benefit liability	433	401
Other	172	31
Total non-current liabilities	3,019	2,058
Total liabilities	17,272	17,493
Net assets
Shareholders' equity
Share capital	1,954	1,954
Capital surplus	1,779	1,779
Retained earnings	51,902	54,766
Treasury shares	(2,365)	(2,350)
Total shareholders' equity	53,271	56,149
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,575	3,643
Foreign currency translation adjustment	248	(417)
Remeasurements of defined benefit plans	(32)	(10)
Total accumulated other comprehensive income	2,791	3,215
Non-controlling interests	2,290	2,198
Total net assets	58,354	61,564
Total liabilities and net assets		75,626	79,057

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Consolidated statements of income and consolidated statements of comprehensive income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2020	March 31, 2021
Net sales	62,887	55,006
Cost of sales	48,288	41,683
Gross profit	14,598	13,323
Selling, general and administrative expenses	8,540	7,990
Operating profit	6,057	5,332
Non-operating income
Interest income	50	42
Dividend income	197	169
Rental income from buildings	80	77
Foreign exchange gains	-	15
Share of profit of entities accounted for using equity method	-	45
Miscellaneous income	109	64
Total non-operating income	438	415
Non-operating expenses
Interest expenses	56	55
Commitment fees	31	6
Foreign exchange losses	55	-
Rental costs	9	9
Sales discounts	24	26
Share of loss of entities accounted for using equity method	107	-
Miscellaneous losses	6	4
Total non-operating expenses	293	102
Ordinary profit	6,202	5,645
Extraordinary income
Gain on sale of non-current assets	0	0
Gain on sale of investment securities	218	40
Total extraordinary income	218	40
Extraordinary losses
Loss on disposal of non-current assets	40	7
Loss on sale of investment securities	22	-
Loss on valuation of investment securities	180	-
Total extraordinary losses	243	7
Profit before income taxes	6,177	5,678
Income taxes - current	1,895	1,735
Income taxes - deferred	(1)	(14)
Total income taxes	1,893	1,721
Profit	4,284	3,956
Profit attributable to
Profit attributable to owners of parent	4,071	3,860
Profit attributable to non-controlling interests	213	96

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