DAIHEN : Consolidated Financial Results for the Three Months Ended June 30, 2022

Consolidated Financial Results

for the Three Months Ended June 30, 2022

[Japanese GAAP]

August 2, 2022

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, General Manager, Finance & Accounting Department, Planning Division

Phone: [phone]

Scheduled date of filing quarterly securities report: August 3, 2022

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, 2022 (April 1, 2022 - June 30, 2022)

(1) Consolidated Operating Results (cumulative)	(% indicates changes from the previous corresponding 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, 2022			36,666	6.2		1,819	(41.5)		2,368	(33.6)		1,632	(32.2)
	June 30, 2021			34,527	13.0		3,107	170.0		3,565	70.7		2,406	64.1
	(Note) Comprehensive		income: Three months	ended June 30, 2022:	5,407 million yen [33.6%]
				Three months ended June 30, 2021: 4,047 million yen [320.4%]
				Basic earnings		Diluted
					earnings
				per share
						per share
	Three months ended			Yen			Yen
	June 30, 2022		66.53			-
	June 30, 2021		97.50			-
(2) Consolidated Financial Position
				Total assets		Net assets	Equity ratio
					Million yen		Million yen		%
	As of June 30, 2022		194,950		110,082		53.5
	As of March 31, 2022		194,801		105,636		51.2

(Reference) Equity: As of June 30, 2022: 104,225 million yen As of March 31, 2022: 99,693 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
	-	50.00		-	60.00	110.00
March 31, 2022
Fiscal year ending		-
March 31, 2023
Fiscal year ending
March 31, 2023			75.00		-	75.00	150.00
(Forecast)

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

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

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
							parent
First half	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
80,000	11.3	7,000	9.7	7,500	5.1	5,500	6.3	224.16
Full year	180,000	12.1	16,500	16.3	17,000	7.7	12,000	9.2	489.07

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

* Notes:

(1) Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation):

Newly included: - (), Excluded: - ()

(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 because it was dissolved as of April 1, 2022, 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 Quarterly
2. 
   Consolidated Financial Statements (Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements)" on page 8 of the attachments.
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 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)
6. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2022:	27,103,291 shares
March 31, 2022:	27,103,291 shares
2) Total number of treasury shares at the end of the period:
June 30, 2022:	2,567,284 shares
March 31, 2022:	2,567,039 shares
3) Average number of shares during the period:
Three months ended June 30, 2022:	24,536,111 shares
Three months ended June 30, 2021:	24,683,494 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 3 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 ..............................................................................................................	3
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ............	3
2. Quarterly Consolidated Financial Statements and Principal Notes ................................................................	4
(1)	Quarterly Consolidated Balance Sheets .....................................................................................................	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income .............................................	6
(3)	Notes to Quarterly Consolidated Financial Statements ..............................................................................	8
	(Notes on going concern assumption) ......................................................................................................	8
	(Notes in case of significant changes in shareholders' equity) .................................................................	8
	(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
	statements) ................................................................................................................................................	8
	(Additional information) ..........................................................................................................................	8
	(Segment information, etc.) ......................................................................................................................	9
	(Business combination) ..........................................................................................................................	11

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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, 2022 was order received of 54,829 million yen (up 34.0% year-on-year) and net sales of 36,666 million yen (up 6.2% year-on-year) due to recovery in capital investment with normalization of economic activities from the stagnation caused by COVID-19 in addition to strong investment in semiconductor manufacturing equipment. However, temporary deterioration of profit margin due to soaring prices of parts and an impact of advanced investment to meet an increase in demand resulted in operating profit of 1,819 million yen (down 1,288 million yen year-on-year), ordinary profit of 2,368 million yen (down 1,196 million yen year-on-year), and profit attributable to owners of parent of 1,632 million yen (down 774 million yen year-on-year).
   The performance of each segment is as follows.

1. Power Products Business
   Owing to an increase in demand for increasing power-receiving facilities for plants, etc. in Japan in addition to strong investment in the replacement of power distribution products, net sales were 14,956 million yen (up 5.2% year-on- year) while operating profit was 824 million yen (down 12.0% year-on-year) due to an impact of soaring prices of materials, etc.
2. Welding & Mechatronics Business
   Owing to recovery in investment in production automation in Japan with normalization of economic activities, etc., net sales were 10,683 million yen (up 9.1% year-on-year), while operating profit was 313 million yen (down 67.3% year-on-year) due to decline in profitability caused by the lockdown in China, etc.
3. Semiconductor & FPD Related Business
   Owing to the growing demand for semiconductors with the progress of digitalization and the expansion of investment to resolve a global shortage of semiconductors, net sales were 10,984 million yen (up 4.9% year-on-year), while operating profit was 1,753 million yen (down 16.7% year-on-year) due to soaring prices of parts and increase in expenses with building a system to increase production, etc.
4. Other
   Net sales were 43 million yen and operating profit was 14 million yen. There were no significant changes from the corresponding period of the previous year.
   (Reference) Performance by Segment

						(Million yen)
Segment	Orders Received	Net Sales	Operating Profit
Amount	% change	Amount	% change	Amount	% change
Power Products Business	20,965	+29.9%	14,956	+5.2%	824	-12.0%
Welding & Mechatronics	12,163	+9.4%	10,683	+9.1%	313	-67.3%
Business
Semiconductor & FPD	21,656	+58.9%	10,984	+4.9%	1,753	-16.7%
Related Business
Other	43	-7.6%	43	-7.6%	14	-19.1%
Company Total	54,829	+34.0%	36,666	+6.2%	1,819	-41.5%

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