DAIHEN : Financial Statements 2020

FINANCIAL STATEMENTS

YEARS ENDED 31ST MARCH, 2021 AND 2020

WITH

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

2-1-11, Tagawa Yodogawa-ku

Osaka, Japan

DAIHEN CORPORATION

Consolidated Balance Sheets

Years Ended March 31, 2021 and 2020

					Thousands of
	Millions of yen		U.S. dollars
		(Note 1)
ASSETS	2021	2020		2021
Current assets:	¥19,261	¥15,020	$173,977
Cash and deposits (Note 5 and 7)
Receivables −
Trade notes and accounts receivable (Note 7 and 15)	222	148	2,005
Unconsolidated subsidiaries and affiliates
Other	40,728	38,202	367,880
Loans and other accounts	2,905	2,182	26,240
Allowance for doubtful accounts	(575)	(50)	(5,194)
Inventories (Note 6)	43,280		40,482		390,931
41,782	42,097	377,400
Other current assets	967	927	8,735
Total current assets	105,290		98,526		951,043
Property, plant and equipment (Note 9 and 11):	8,803	8,783	79,514
Land
Buildings and structures	46,939	45,506	423,982
Machinery and equipment	55,656	54,614	502,719
Lease assets	1,339	1,396	12,095
Construction in progress	1,149	2,075	10,378
Total	113,886		112,374		1,028,688
Accumulated depreciation	(75,114)	(72,359)	(678,475)
Net property, plant and equipment	38,772		40,015		350,213
Intangible assets:	1,621	1,713	14,642
Software
Other intangible assets	263	302	2,375
Total intangible assets	1,884		2,015		17,017
Investments and other assets:	11,068	7,821	99,973
Investment securities (Note 7 and 8)
Investments in unconsolidated subsidiaries and affiliates (Note 7)	6,584	5,710	59,471
Deferred tax assets (Note 13)	1,116	1,151	10,080
Net defined benefit asset (Note 14)	8,880	5,481	80,201
Other	1,621	1,707	14,651
Allowance for doubtful accounts	(82)	(98)	(741)
Total investments and other assets	29,187		21,772		263,635
Total assets	¥175,133	¥162,328	$1,581,908

See accompanying Notes to Consolidated Financial Statements.

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DAIHEN CORPORATION

Consolidated Balance Sheets

Years Ended March 31, 2021 and 2020

					Thousands of
	Millions of yen		U.S. dollars
		(Note 1)
LIABILITIES	2021	2020		2021
Current liabilities:	¥6,085	¥6,911	$54,963
Short-term loans (Note 7, 11 and 12)
Long-term debt due within one year (Note 7, 11 and 12)	4,226	3,965	38,172
Trade notes and accounts payable (Note 7)	801	751	7,235
Unconsolidated subsidiaries and affiliates
Other	28,832	27,105	260,428
Accrued employees' bonuses	3,602	2,871	32,536
Accrued directors' and corporate auditors' bonuses	100	90	903
Allowance for loss on construction contracts	80	56	723
Income taxes payable	2,736	1,821	24,713
Other current liabilities	6,121	6,430	55,289
Total current liabilities	52,583		50,000		474,962
Long-term liabilities:	19,365	22,050	174,916
Long-term debt (Note 7, 11 and 12)
Net defined benefit liability (Note 14)	1,951	1,952	17,623
Reserve for directors' and corporate auditors' retirement benefits	63	52	569
Asset retirement obligation	74	74	668
Deferred tax liabilities (Note 13)	2,340	959	21,136
Provision for construction expenses related to earhquake resistance renovation	669	707	6,043
Provision for product safety measures	19	44	172
Other noncurrent liabilities	1,148	1,146	10,370
Total long-term liabilities	25,629		26,984		231,497
Total liabilities	78,212		76,984		706,45
Contingent liabilities (Note 15)
NET ASSETS (Note 18)
Shareholders' equity:	10,596	10,596	95,710
Common stock − (Note 4)
Authorized - 108,000 thousand shares in 2021 and 2020
Issued - 27,103 thousand shares in 2021 and 2020	10,024	10,016	90,543
Capital surplus
Retained earnings	66,996	59,628	605,149
Treasury stock, at cost − (Note 4)
− 2,420 thousand shares in 2021	(4,196)	(4,123)	(37,901)
− 2,396 thousand shares in 2020
Accumulated other comprehensive income:	5,256	2,987	47,475
Net unrealized holding gains and losses on available-for-sale securities
Net deferred gains and losses on hedges	(13)	7	(117)
Foreign currency translation adjustments	1,146	1,704	10,351
Remeasurements of defined benefit plans	1,365	(851)	12,329
Total accumulated other comprehensive income	7,754		3,847		70,038
Noncontrolling interests	5,747		5,380		51,910
Total net assets	96,921		85,344		875,449
Total liabilities and net assets	¥175,133	¥162,328	$1,581,908

See accompanying Notes to Consolidated Financial Statements.

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DAIHEN CORPORATION

Consolidated Statements of Income

Years Ended March 31, 2021 and 2020

						Thousands of
	Millions of yen		U.S. dollars
		(Note 1)
	2021			2020		2021
Net sales (Note 9)	¥145,145			¥145,044	$1,311,038
Cost of sales (Note 6, 9 and 14)	98,299			100,022	887,896
Gross profit	46,846			45,022		423,142
Selling, general and administrative expenses (Note 14)	34,662			35,956	313,089
Operating income	12,184			9,066		110,053
Other income (expenses):	304			349	2,746
Interest and dividend income
Interest expense	(194)			(246)	(1,752)
Foreign currency exchange gain (loss)	257			(86)	2,321
Gain on sales of property, plant and equipment and intangible assets	−	172		−
Gain on sales of investment securities	−	37		−
Share of profit of entities accounted for using equity method	808			149	7,298
Compensation for damage	−	(109)		−
Provision of allowance for doubtful accounts	(522)			−	(4,715)
Expense related to product accident (Note 17)	(115)			−	(1,039)
Business structure improvement expenses	(72)			−	(650)
Impairment loss on investment securities	−	(80)		−
Impairment loss (Note 16)	−	(80)		−
Loss on sales of investment securities	−	(35)		−
Other, net	476			234	4,300
Total other income (expenses)	942			305		8,509
Income before income taxes	13,126			9,371	118,562
Income taxes (Note 13):	3,987			2,740	36,013
Current
Deferred	(495)			(180)	(4,471)
Profit	¥9,634			¥6,811		$87,020
Noncontrolling interests
223			139	2,014
Owners of parent	9,411			6,672	85,006
Per share of common stock: (Note 2 (20))	Yen			U.S. dollars
		(Note 1)
Net income per share	¥381.28			¥269.06		$3.44
Cash dividends applicable to the year	¥90.00			¥85.00	$0.81

See accompanying Notes to Consolidated Financial Statements.

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DAIHEN CORPORATION

Consolidated Statement of Comprehensive Income

Years Ended March 31, 2021 and 2020

					Thousands of
	Millions of yen	U.S. dollars
	(Note 1)
Profit	2021		2020		2021
¥9,634		¥6,811		$87,020
Other comprehensive income	2,271		(581)		20,513
Net unrealized holding gains and losses on available-for-sale securities
Net deferred gains and losses on hedges	(19)	7		(172)
Foreign currency translation adjustments	(533)	171		(4,995)
Remeasurment of defined benefit plans	2,301		(1,163)	20,784
Share of other comprehensive income of affiliates accounted	69		(105)	624
for using equity method
Total other comprehensive income (Note 3)	4,069		(1,671)		36,754
Comprehensive income	¥13,703		¥5,140		$123,774
Attributable to:
¥13,318		¥5,087		$120,296
Owners of parent
Noncontrolling interests	¥385		¥53		$3,478

See accompanying Notes to Consolidated Financial Statements.

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