Consolidated Financial Results

for the Three Months Ended June 30, 2023

[Japanese GAAP]

August 2, 2023

Company name: DAIHEN Corporation

Stock exchange listing: Tokyo Stock Exchange, Fukuoka Stock Exchange

Stock exchange code: 6622

URL: https://www.daihen.co.jp/

Representative: Shoichiro Minomo, President and Chief Executive Officer

Contact: Shigeo Ozawa, Vice President, General Manager, Finance & Accounting Department, Planning Division

Phone: +81-6-6390-5506

Scheduled date of filing quarterly securities report: August 3, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023 - June 30, 2023)

(1) Consolidated Operating Results (cumulative)

(% indicates changes from the previouscorresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

June 30, 2023

35,290

(3.8)

772

(57.6)

1,334

(43.6)

688

(57.8)

June 30, 2022

36,666

6.2

1,819

(41.5)

2,368

(33.6)

1,632

(32.2)

(Note) Comprehensive income: Three months ended June 30, 2023: 3,210 million yen [(40.6)%]

Three months ended June 30, 2022: 5,407 million yen [33.6%]

Basic earnings

Diluted

earnings

per share

per share

Three months ended

Yen

Yen

June 30, 2023

28.05

-

June 30, 2022

66.53

-

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Million yen

Million yen

%

As of June 30, 2023

211,341

120,910

54.4

As of March 31, 2023

212,690

119,905

53.5

(Reference) Equity: As of June 30, 2023: 114,869 million yen As of March 31, 2023: 113,800 million yen

2. Dividends

Annual dividends

1st quarter-end

2nd quarter-end

3rd quarter-end

Year-end

Total

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

-

75.00

-

87.00

162.00

March 31, 2023

Fiscal year ending

-

March 31, 2024

Fiscal year ending

March 31, 2024

82.50

-

82.50

165.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)

(% indicates changes from the previous corresponding period.)

Profit attributable to

Basic

Net sales

Operating profit

Ordinary profit

earnings

owners of parent

per share

First half

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

77,000

(7.4)

4,500

(38.8)

4,700

(42.8)

3,500

(42.7)

142.63

Full year

187,000

0.9

17,000

2.6

17,700

0.2

13,500

2.3

550.14

(Note) Revision to the financial results forecast announced most recently: None

* Notes:

(1) Changes in significant subsidiaries during the period under review: Yes (Changes in specified subsidiaries resulting in changes in scope of consolidation):

Newly included: - (), Excluded: 1 (DAIHEN Techno Support Corporation)

(Note) DAIHEN Techno Support Corporation, which used to be a consolidated subsidiary, was excluded from the scope of consolidation from the three months ended June 30, 2023 because it was dissolved as of April 1, 2023, due to an absorption-type merger, in which the Company was the surviving company.

  1. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: Yes (Note) For details, please see "2. Quarterly Consolidated Financial Statements and Principal Notes (3) Notes to

  2. Quarterly Consolidated Financial Statements (Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements) on page 9 of the attachments.
  3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
    1. Changes in accounting policies due to the revision of accounting standards: None
    2. Changes in accounting policies other than 1) above: None
    3. Changes in accounting estimates: None
    4. Retrospective restatement: None
  5. Total number of issued shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2023:

27,103,291 shares

March 31, 2023:

27,103,291 shares

2) Total number of treasury shares at the end of the period:

June 30, 2023:

2,564,646 shares

March 31, 2023:

2,564,265 shares

3) Average number of shares during the period:

Three months ended June 30, 2023:

24,538,757 shares

Three months ended June 30, 2022:

24,536,111 shares

  • These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
  • Explanation of the proper use of financial results forecast and other notes
    The earnings forecasts and other forward-looking statements contained in this report are based on information available to the Company on the date of this report's release and certain premises that the Company deems to be reasonable. Actual financial results, etc. may differ significantly due to a wide range of factors. For details on the earnings forecasts of the Company, please see "1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 4 of the attachments.

Table of Contents - Attachments

1. Qualitative Information on Quarterly Financial Results

2

(1)

Explanation of Operating Results

2

(2)

Explanation of Financial Position

4

(3)

Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information

4

2. Quarterly Consolidated Financial Statements and Principal Notes

5

(1)

Quarterly Consolidated Balance Sheets

5

(2)

Quarterly Consolidated Statements of Income and Comprehensive Income

7

(3)

Notes to Quarterly Consolidated Financial Statements

9

(Notes on going concern assumption)

9

(Notes in case of significant changes in shareholders' equity)

9

(Accounting methods adopted particularly for the preparation of quarterly consolidated financial

statements)

9

(Segment information, etc.)

10

(Business combination)

13

(Significant subsequent events)

14

1

1. Qualitative Information on Quarterly Financial Results

  1. Explanation of Operating Results
    The performance of DAIHEN Corporation (the "Company") and its subsidiaries (collectively, the "DAIHEN Group") for the three months ended June 30, 2023 was orders received of 43,869 million yen (down 20.0% year- on-year) and net sales of 35,290 million yen (down 3.8% year-on-year) due to the significant impact of a decrease in demand for RF generators for semiconductor manufacturing as semiconductor manufacturers postponed their investment. In income results, the impact of a decrease in net sales resulted in operating profit of 772 million yen (down 1,047 million yen year-on-year), ordinary profit of 1,334 million yen (down 1,033 million yen year- on-year), and profit attributable to owners of parent of 688 million yen (down 944 million yen year-on-year).
    The performance of each segment is as follows.
    Effective from the three months ended June 30, 2023, business segments to be stated as reportable segments have been changed, and comparison and analysis of performance of each segment for the three months ended June 30, 2023 are based on the new categories.
  1. Energy Management
    Owing to strong sales of large-class power transformers and power-receiving facilities for plants in Japan, among others, net sales were 16,532 million yen (up 10.4% year-on-year). Meanwhile, operating profit was 226 million yen (down 65.5% year-on-year) partly due to an increase in the advanced investment in the development in the decarbonization-related business in addition to the impact of soaring prices of materials.
  2. Factory Automation
    Owing to sluggish domestic demand-related investment in China and a decrease in small projects associated with rising interest rates in Southeast Asia, net sales were 6,043 million yen (down 14.3% year-on-year) and operating profit was 99 million yen (down 74.6% year-on-year).
  3. Material Processing
    Although sales of welding and joining machines remained strong mainly for construction in Japan, the impact of a decrease in demand for RF generators for semiconductor manufacturing due to the postponement of investment by semiconductor manufacturers was significant against a backdrop of declining demand for smartphones and PCs. As a result, net sales were 12,670 million yen (down 13.1% year-on-year) and operating profit was 1,532 million yen (down 16.9% year-on-year).
  4. Other
    Net sales were 46 million yen and operating profit was 14 million yen. There were no significant changes from the corresponding period of the previous year.

2

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Daihen Corporation published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 08:12:09 UTC.