Daiken : Consults for the Three Months Ended June 30, 2023 〔Under Japanese GAAP〕（Consolidated Accounting） (258KB)

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.

August 10, 2023

	Consolidated Financial Results
	for the Three Months Ended June 30, 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 to file quarterly securities report:	August 10, 2023
Scheduled date to commence dividend payments:	－
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:	None

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

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Three months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2023	50,762		(16.4)	(543)	－	493	(91.2)	186	(89.0)
June 30, 2022	60,706		14.8	5,013	15.6	5,615	19.4	1,704	(26.9)

Note: Comprehensive income	For the three months ended June 30, 2023:	¥4,922 million	[(30.1)%]
		For the three months ended June 30, 2022:	¥7,037 million	[138.6%]
	Basic earnings	Diluted earnings
		per share	per share
Three months ended		Yen	Yen
June 30, 2023		7.16	－
June 30, 2022		65.43	－

(2) Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio
As of	Millions of yen	Millions of yen	%
June 30, 2023	190,439	95,676	45.3
March 31, 2023	185,797	92,318	45.0
Reference: Equity
As of June 30, 2023:	¥86,198 million
As of March 31, 2023:	¥83,523 million

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end		Third quarter-end		Fiscal year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended	－	50.00		－		60.00	110.00
March 31, 2023
Fiscal year ending	－
March 31, 2024
Fiscal year ending
March 31, 2024		60.00		－		0.00	60.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: Yes

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 yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Six months ending	114,000	(5.2)	2,800	(66.3)	4,200	(57.7)	1,900	(75.6)	72.86
September 30, 2023
Full year	235,000	2.7	8,000	(18.8)	10,900	(16.2)	6,000	(41.9)	230.07

Note: Revisions of forecast of financial results from recently announced figures: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 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
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2023

As of March 31, 2023

27,080,043 shares

27,080,043 shares

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

As of June 30, 2023

As of March 31, 2023

1,008,155 shares

1,008,155 shares

(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2023

Three months ended June 30, 2022

26,071,888 shares

26,057,548 shares

• Quarterly financial results reports are exempt from quarterly review 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, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	19,574	20,800
Notes and accounts receivable - trade,	32,177	32,778
and contract assets
Electronically recorded monetary claims -	13,941	13,134
operating
Merchandise and finished goods	22,167	22,039
Work in process	3,513	3,336
Raw materials and supplies	10,650	11,426
Other	5,372	4,818
Allowance for doubtful accounts	(161)	(158)
Total current assets	107,236	108,175
Non-current assets
Property, plant and equipment
Buildings and structures, net	8,874	8,821
Machinery, equipment and vehicles, net	14,508	14,749
Land	12,995	13,076
Construction in progress	912	1,137
Other, net	2,475	2,527
Total property, plant and equipment	39,765	40,313
Intangible assets
Goodwill	10,145	10,608
Software	1,360	1,627
Other	2,000	1,845
Total intangible assets	13,506	14,081
Investments and other assets
Investment securities	19,621	22,214
Retirement benefit asset	2,959	2,854
Deferred tax assets	1,263	1,353
Other	1,479	1,481
Allowance for doubtful accounts	(43)	(42)
Total investments and other assets	25,280	27,862
Total non-current assets	78,552	82,257
Deferred assets	7	6
Total assets	185,797	190,439

－ 1 －

		(Millions of yen)
	As of March 31, 2023	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	15,738	15,380
Electronically recorded obligations -	12,096	11,492
operating
Short-term borrowings	11,252	14,447
Current portion of long-term borrowings	5,817	5,815
Accounts payable - other	21,313	19,853
Income taxes payable	698	323
Provision for bonuses	2,383	1,200
Provision for product warranties	258	253
Other	5,380	7,710
Total current liabilities	74,939	76,476
Non-current liabilities
Bonds payable	5,000	5,000
Long-term borrowings	7,500	6,664
Deferred tax liabilities	861	1,404
Provision for product warranties	609	603
Retirement benefit liability	3,426	3,444
Provision for loss on litigation	447	447
Negative goodwill	10	10
Other	684	714
Total non-current liabilities	18,539	18,287
Total liabilities	93,478	94,763
Net assets
Shareholders' equity
Share capital	15,300	15,300
Capital surplus	13,965	13,965
Retained earnings	46,089	44,712
Treasury shares	(1,345)	(1,345)
Total shareholders' equity	74,009	72,632
Accumulated other comprehensive income
Valuation difference on available-for-	2,902	3,809
sale securities
Deferred gains or losses on hedges	(40)	42
Foreign currency translation adjustment	4,934	8,065
Remeasurements of defined benefit plans	1,717	1,648
Total accumulated other comprehensive	9,513	13,566
income
Non-controlling interests	8,794	9,477
Total net assets	92,318	95,676
Total liabilities and net assets	185,797	190,439

－ 2 －

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2022	June 30, 2023
Net sales	60,706	50,762
Cost of sales	43,089	39,774
Gross profit	17,616	10,987
Selling, general and administrative expenses	12,602	11,531
Operating profit (loss)	5,013	(543)
Non-operating income
Interest income	46	87
Dividend income	144	141
Amortization of negative goodwill	0	0
Share of profit of entities accounted for	19	445
using equity method
Foreign exchange gains	238	278
Other	222	162
Total non-operating income	672	1,116
Non-operating expenses
Interest expenses	49	24
Loss on sale of trade receivables	2	2
Other	19	51
Total non-operating expenses	71	78
Ordinary profit	5,615	493
Extraordinary income
Gain on sale of non-current assets	46	0
Total extraordinary income	46	0
Extraordinary losses
Loss on retirement of non-current assets	72	31
Loss on valuation of investment securities	18	10
Other	1	－
Total extraordinary losses	91	41
Profit before income taxes	5,569	451
Income taxes - current	1,738	270
Income taxes - deferred	(169)	(68)
Total income taxes	1,569	201
Profit	4,000	249
Profit attributable to non-controlling	2,295	63
interests
Profit attributable to owners of parent	1,704	186

－ 3 －