Denyo : Summary of Consolidated Financial Results for the Nine Months Ended December 31,2021 (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 Nine Months Ended December 31, 2021 (Based on Japanese GAAP)

February 10, 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

03-6861-1111

Scheduled date to file Quarterly Securities Report:

February 14, 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 nine months ended December 31, 2021 (from April 1, 2021 to December 31, 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

%

Nine months ended December 31, 2021

39,449

1.2

2,456

(28.4)

2,711

(26.1)

1,900

(23.9)

Nine months ended December 31, 2020

38,988 (15.7)

3,431

(22.9)

3,669

(19.1)

2,496

(19.5)

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended December 31, 2021

91.10

-

Nine months ended December 31, 2020

119.74

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of December 31, 2021

80,357

63,153

75.7

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 nine months ended December 31, 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 December 31, 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 December 31, 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)
	Nine months ended December 31, 2021	20,862,583	shares	Nine months ended December 31, 2020	20,849,962	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits	21,913	21,869
Notes and accounts receivable - trade	17,436	-
Notes and accounts receivable - trade, and contract assets	-	15,515
Electronically recorded monetary claims - operating	3,426	4,904
Securities	999	999
Merchandise and finished goods	4,636	5,080
Work in process	1,566	1,714
Raw materials and supplies	4,073	5,896
Other	396	588
Allowance for doubtful accounts	(4)	(3)
Total current assets	54,443	56,564
Non-current assets
Property, plant and equipment
Buildings and structures, net	7,145	7,085
Machinery, equipment and vehicles, net	2,526	2,126
Land	5,047	5,053
Construction in progress	20	13
Other, net	225	240
Total property, plant and equipment	14,964	14,519
Intangible assets	583	634
Investments and other assets
Investment securities	8,750	8,349
Other	317	291
Allowance for doubtful accounts	(2)	(2)
Total investments and other assets	9,065	8,638
Total non-current assets	24,613	23,792
Total assets	79,057	80,357

3

			(Millions of yen)
		As of March 31, 2021	As of December 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	8,773	9,169
Electronically recorded obligations - operating	1,991	2,789
Short-term borrowings	1,317	210
Accrued expenses	514	691
Income taxes payable	978	34
Provision for bonuses	637	383
Provision for bonuses for directors (and other officers)	83	53
Provision for product warranties	126	151
Other	1,010	858
Total current liabilities	15,434	14,343
Non-current liabilities
Long-term borrowings	-	805
Lease obligations	267	280
Deferred tax liabilities	1,358	1,329
Retirement benefit liability	401	413
Other	31	31
Total non-current liabilities	2,058	2,860
Total liabilities	17,493	17,203
Net assets
Shareholders' equity
Share capital	1,954	1,954
Capital surplus	1,779	1,788
Retained earnings	54,766	55,648
Treasury shares	(2,350)	(2,344)
Total shareholders' equity	56,149	57,047
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,643	3,411
Foreign currency translation adjustment	(417)	379
Remeasurements of defined benefit plans	(10)	(2)
Total accumulated other comprehensive income	3,215	3,788
Non-controlling interests	2,198	2,317
Total net assets	61,564	63,153
Total liabilities and net assets	79,057	80,357

4

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

		(Millions of yen)
	Nine months ended	Nine months ended
	December 31, 2020	December 31, 2021
Net sales	38,988	39,449
Cost of sales	29,698	30,915
Gross profit	9,289	8,534
Selling, general and administrative expenses	5,858	6,078
Operating profit	3,431	2,456
Non-operating income
Interest income	33	30
Dividend income	127	139
Rental income from buildings	58	61
Foreign exchange gains	37	11
Share of profit of entities accounted for using equity method	16	15
Other	41	43
Total non-operating income	314	302
Non-operating expenses
Interest expenses	42	31
Sales discounts	18	-
Other	15	15
Total non-operating expenses	76	47
Ordinary profit	3,669	2,711
Extraordinary income
Gain on sale of non-current assets	0	0
Gain on sale of investment securities	40	28
Total extraordinary income	40	29
Extraordinary losses
Loss on disposal of non-current assets	4	38
Total extraordinary losses	4	38
Profit before income taxes	3,705	2,702
Income taxes - current	972	683
Income taxes - deferred	146	112
Total income taxes	1,119	795
Profit	2,586	1,906
Profit attributable to
Profit attributable to owners of parent	2,496	1,900
Profit attributable to non-controlling interests	89	5
Other comprehensive income
Valuation difference on available-for-sale securities	468	(231)
Foreign currency translation adjustment	(479)	940
Remeasurements of defined benefit plans, net of tax	10	8
Share of other comprehensive income of entities accounted	(0)	(0)
for using equity method
Total other comprehensive income	(1)	716
Comprehensive income	2,585	2,623
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	2,608	2,473
Comprehensive income attributable to non-controlling interests	(23)	149

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