DAIHEN : Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Note: This is a translation of the original in Japanese provided for the convenience of users. In the event of any discrepancy between the original and this translation, the former shall prevail. The Company is not responsible for any losses caused by such discrepancies.

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

[Japanese GAAP]

May 10, 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: [phone]

Scheduled date of annual general meeting of shareholders: June 28, 2023

Scheduled date of commencing dividend payments: June 29, 2023

Scheduled date of filing securities report: June 28, 2023

Availability of supplementary explanatory materials on financial results: Available

Schedule of financial results briefing session: Scheduled (for institutional investors and analysts)

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

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 -March 31, 2023)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
March 31, 2023	185,288	15.4	16,568	16.7	17,660	11.8	13,193	20.1
March 31, 2022	160,618	10.7	14,191	16.5	15,790	14.7	10,985	16.7

(Note) Comprehensive income: Fiscal year ended March 31, 2023: 17,099 million yen [37.8 %]
	Fiscal year ended March 31, 2022: 12,407 million yen [(9.5) %]
	Basic earnings	Diluted	Return on	Ratio of	Ratio of
	earnings	ordinary profit	operating profit
	per share	equity
	per share	to total assets	to net sales
Fiscal year ended	Yen	Yen	%	%	%
March 31, 2023	537.67	－	12.4	8.7	8.9
March 31, 2022	445.29	－	11.5	8.5	8.8

(Reference) Share of profit (loss) of entities accounted for using equity method: Fiscal year ended March 31, 2023: 182 million yen Fiscal year ended March 31, 2022: 154 million yen

(2) Consolidated Financial Position

		Total assets			Net assets		Equity ratio	Net assets per share
		Million yen		Million yen		%	Yen
As of March 31, 2023		212,690		119,905		53.5	4,637.52
As of March 31, 2022		194,801		105,636		51.2	4,063.09
(Reference) Equity: As of	March 31, 2023: 113,800 million yen
As of March 31, 2022: 99,693 million yen
(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
Fiscal year ended		Million yen			Million yen			Million yen		Million yen
March 31, 2023	(7,233)		(4,717)		1,895		14,853
March 31, 2022	12,950		(3,299)		(5,308)		24,409

2. Dividends

		Annual dividends			Total			Ratio of
							Payout ratio		dividends to
	1st	2nd	3rd	Year-			dividends
	Total		(consolidated)		net assets
	quarter-	quarter-	quarter-	end		(annual)
	end	end	end						(consolidated)
Fiscal year ended	Yen	Yen	Yen	Yen	Yen		Million yen	%	%
－	50.00	－	60.00	110.00	2,715	24.7	2.8
March 31, 2022
Fiscal year ended	－	75.00	－	87.00	162.00	3,988	30.1	3.7
March 31, 2023
Fiscal year ending
March 31, 2024	－	82.50	－	82.50	165.00			30.0
(Forecast)

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.)
	Net sales		Operating profit	Ordinary profit	Profit attributable	Basic
		to owners of	earnings per
							parent		share
	Million yen	%	Million yen	%	Million	%	Million	%	Yen
	yen	yen
First half
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

* Notes:

(1) Changes in significant subsidiaries during the period under review

(Changes in specified subsidiaries resulting in changes in scope of consolidation): None

(Note) Even though there are no changes in specified subsidiaries resulting in changes in scope of consolidation, DAIHEN System Corporation, which used to be a consolidated subsidiary, was excluded from the scope of consolidation from the three months ended June 30, 2022 because it was dissolved as of April 1, 2022, due to an absorption-type merger, in which the Company was the surviving company.

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 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
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

March 31, 2023:	27,103,291 shares
March 31, 2022:	27,103,291 shares
2) Total number of treasury shares at the end of the period:
March 31, 2023:	2,564,265 shares
March 31, 2022:	2,567,039 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2023:	24,538,646 shares
Fiscal year ended March 31, 2022:	24,669,523 shares

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)

(1) Non-consolidated Operating Results				(% indicates changes from the previouscorresponding period.)
			Net sales				Operating profit	Ordinary profit	Profit
	Fiscal year ended	Million yen		%		Million yen	%	Million yen	%	Million yen		%
	March 31, 2023	140,506		19.0		11,164		18.5	13,120	6.8	10,487		17.3
	March 31, 2022	118,028		11.7		9,420		37.0	12,281	34.6	8,941		33.0
			Basic earnings		Diluted earnings
			per share			per share
	Fiscal year ended		Yen				Yen
	March 31, 2023		426.02				－
	March 31, 2022		361.31				－

(2) Non-consolidated Financial Position

		Total assets	Net assets	Equity ratio	Net assets per share
		Million yen	Million yen	%	Yen
	As of March 31, 2023	132,791	60,164	45.3	2,444.03
	As of March 31, 2022	124,039	53,057	42.8	2,155.54
	(Reference) Equity:	As of March 31, 2023: 60,164 million yen
		As of March 31, 2022: 53,057 million yen

non-consolidated basis> Net sales increased mainly due to expanded demand for semiconductor manufacturing equipment. As a result, operating profit, ordinary profit, and profit also increased year on year.

• These consolidated financial results are outside the scope of audits 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. Overview of Operating Results, etc. (4) Future Outlook" on page 4 of the attachments.

Table of Contents - Attachments
1. Overview of Operating Results, etc	2
(1)	Overview of Operating Results for the Fiscal Year under Review	2
(2)	Overview of Financial Position for the Fiscal Year under Review	3
(3)	Overview of Cash Flows for the Fiscal Year under Review	3
(4)	Future Outlook	4
(5)	Basic Policy on Profit Distribution and Dividends for Current and Next Fiscal Years	4
2. Basic Stance on the Selection of Accounting Standards	4
3. Consolidated Financial Statements and Principal Notes	5
(1)	Consolidated Balance Sheets	5
(2)	Consolidated Statements of Income and Comprehensive Income	7
(3)	Consolidated Statements of Changes in Equity	10
(4)	Consolidated Statements of Cash Flows	12
(5)	Notes to Consolidated Financial Statements	14
	(Notes on going concern assumption)	14
	(Changes in matters related to fiscal year-ends, etc. of consolidated subsidiaries and affiliated
	companies accounted for by equity method)	14
	(Business combination)	14
	(Segment information, etc.)	16
	(Per share information)	21
	(Significant subsequent events)	22

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1. Overview of Operating Results, etc.

1. Overview of Operating Results for the Fiscal Year under Review
   The performance of DAIHEN Corporation (the "Company") and its subsidiaries (collectively, the "DAIHEN Group") for the fiscal year ended March 31, 2023 (the "fiscal year under review") was net sales of 185,288 million yen (up 15.4% year-on-year), due to expansion of investment in production automation and EV-related investment in addition to generally strong semiconductor-related investment. In income results, although there was an impact of soaring prices of materials and electronic components, etc., the increase in net sales and the achievements in cost reductions resulted in operating profit of 16,568 million yen (up 2,376 million yen year- on-year), ordinary profit of 17,660 million yen (up 1,870 million yen year-on-year), and profit attributable to owners of parent of 13,193 million yen (up 2,208 million yen year-on-year). Both net sales and income results reached an all-time high.
   The performance of each segment is as follows.

1. Power Products Business
   Owing to an increase in investment related to renewable energy toward the achievement of a decarbonized society and an increase in demand for the replacement of power-receiving facilities in the private sector in addition to strong investment in the replacement of power distribution products, net sales were 75,371 million yen (up 9.4% year-on-year). Meanwhile, operating profit was 3,664 million yen (down 1,315 million yen year- on-year) due to the impact of soaring prices of materials, etc.
2. Welding & Mechatronics Business
   Owing to the recovery in investment in production automation and the expansion of demand associated with full-fledgedEV-related investment, net sales were 50,810 million yen (up 10.4% year-on-year) and operating profit was 5,686 million yen (up 1,282 million yen year-on-year).
3. Semiconductor & FPD Related Business
   Amid restricted production due to shortages of electronic components and other parts, the Company strived to secure parts through design changes and adoption of substitute products, and to make company-wide efforts to increase production. As a result, net sales were 58,961 million yen (up 29.4% year-on-year) and operating profit was 11,008 million yen (up 2,223 million yen year-on-year).
4. Other
   Net sales were 180 million yen and operating profit was 55 million yen. There were no significant changes from the previous fiscal year.
   (Reference) Performance by Segment

(Million yen)

Segment	Orders Received	Order Backlog	Net Sales	Operating Profit
Amount	% change	Amount	% change	Amount	% change	Amount	% change
Power Products Business	84,533	+16.2%	48,473	+24.2%	75,371	+9.4%	3,664	-26.4%
Welding & Mechatronics	51,612	+7.6%	6,482	+37.4%	50,810	+10.4%	5,686	+29.1%
Business
Semiconductor & FPD	46,665	-23.6%	14,616	-45.1%	58,961	+29.4%	11,008	+25.3%
Related Business
Other	180	-3.3%	－	－	180	-3.3%	55	-0.8%
Company Total	182,992	+0.6%	69,572	-1.2%	185,288	+15.4%	16,568	+16.7%

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