[Delayed] Consolidated Financial Results for the Six Months Ended September 30,2021[Japanese GAAP]

Consolidated Financial Results

for the Six Months Ended September 30, 2021

[Japanese GAAP]

November 2, 2021

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: November 4, 2021

Scheduled date of commencing dividend payments: December 3, 2021

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 Six Months Ended September 30, 2021 (April 1, 2021 - September 30, 2021)

(1) Consolidated Operating Results (cumulative)	(% indicates changes from the previous corresponding period.)
			Net sales		Operating profit		Ordinary profit		Profit attributable to
						owners of parent
Six months ended			Million yen	%	Million yen	%		Million yen	%		Million yen	%
September 30, 2021			71,892	14.1		6,379	73.2		7,133	47.6		5,172	65.3
September 30, 2020			63,031	(3.5)		3,682	20.8		4,833	48.3		3,130	36.1
(Note) Comprehensive		income: Six months	ended September 30, 2021: 6,802 million yen [90.1%]
			Six months ended September 30, 2020: 3,578 million yen [74.0%]
			Basic earnings		Diluted
				earnings
			per share
					per share
Six months ended			Yen			Yen
September 30, 2021		209.54			-
September 30, 2020		126.81			-
(2) Consolidated Financial Position
			Total assets		Net assets	Equity ratio
				Million yen		Million yen		%
As of September 30, 2021	180,595		101,902		53.2
As of March 31, 2021		175,132		96,921		52.1

(Reference) Equity: As of September 30, 2021: 96,140 million yen As of March 31, 2021: 91,174 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
	-	42.50		-	47.50	90.00
March 31, 2021
Fiscal year ending		-	50.00
March 31, 2022
Fiscal year ending
March 31, 2022					-	50.00	100.00
(Forecast)

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

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
							parent
Full year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
160,000	10.2	14,000	14.9	14,800	7.5	10,500	11.6	425.34

(Note) Revision to the financial results forecast announced most recently: Yes

* 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: - (

)

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 (4) 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
4. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None

(Note) For details, please see "2. Quarterly Consolidated Financial Statements and Principal Notes (4) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)" on pages 9 and 10 of the attachments.

(4) Total number of issued shares (common shares)

1)	Total number of issued shares at the end of the period (including treasury shares):
	September 30, 2021:	27,103,291 shares
	March 31, 2021:	27,103,291 shares
2)	Total number of treasury shares at the end of the period:
	September 30, 2021:	2,416,564 shares
	March 31, 2021:	2,419,521 shares
3) Average number of shares during the period:
	Six months ended September 30, 2021:	24,685,131 shares
	Six months ended September 30, 2020:	24,683,131 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)	Quarterly Consolidated Statements of Cash Flows ......................................................................................	8
(4)	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
	(Changes in accounting policies) .............................................................................................................	9
	(Segment information, etc.) ....................................................................................................................	10

1

1. Qualitative Information on Quarterly Financial Results

1. Explanation of Operating Results
   The DAIHEN Group's performance for the six months ended September 30, 2021 was net sales of 71,892 million yen (up 14.1% year-on-year), due to strong investment in production automation in addition to the expansion of demand for semiconductor manufacturing equipment. In income results, although there was an impact of soaring prices of materials and electronic components, etc., the increase in net sales and the effectiveness of cost reductions resulted in operating profit of 6,379 million yen (up 2,697 million yen year-on- year), ordinary profit of 7,133 million yen (up 2,300 million yen year-on-year), and profit attributable to owners of parent of 5,172 million yen (up 2,042 million yen year-on-year).
   The performance of each segment is as follows.

1. Power Products Business
   As a result of strong investment in the replacement of power distribution products, net sales were 28,343 million yen (up 2.5% year-on-year) and operating profit was 1,961 million yen (up 24 million yen year-on- year).
2. Welding & Mechatronics Business
   In addition to an increase in EV-related investment in China, investment in production automation was on a recovery trend in Taiwan, Europe and the United States, resulting in net sales of 22,214 million yen (up 27.8% year-on-year), and operating profit was 2,117 million yen (up 1,205 million yen year-on-year).
3. Semiconductor & FPD Related Business
   Due to the aggressive expansion of capital investment in preparation for the full-scale dissemination of 5G and a resolution of the global shortage of semiconductors, net sales were 21,257 million yen (up 18.7% year-on- year), and operating profit was 4,080 million yen (up 1,105 million yen year-on-year).
4. Other
   Net sales were 95 million yen and operating profit was 33 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	33,441	+3.1%	28,343	+2.5%	1,961	+1.3%
Welding & Mechatronics	23,093	+23.7%	22,214	+27.8%	2,117	+132.2%
Business
Semiconductor & FPD	27,905	+84.9%	21,257	+18.7%	4,080	+37.1%
Related Business
Other	95	-6.2%	95	-6.2%	33	-8.8%
Company Total	84,534	+27.5%	71,892	+14.1%	6,379	+73.2%

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