デンヨー（6517） – [Delayed] Summary of Consolidated Financial Results for the Year Ended March 31, 2022 [Based on Japanese GAAP]

Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Summary of Consolidated Financial Results for the Year Ended March 31, 2022 (Based on Japanese GAAP) Company name: Denyo Co., Ltd. Stock exchange listing: Tokyo Stock code: 6517 URL https://www.denyo.co.jp/ Representative: Inquiries: President Director & Senior Executive Officer Shoichi Shiratori Makoto Tanabe Scheduled date of ordinary general meeting of shareholders: Scheduled date to file Securities Report: Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: June 29, 2022 June 29, 2022 June 8, 2022 Yes May 12, 2022 TEL 03-6861-1111 Holding of financial results meeting: (1) Consolidated operating results Yes (for analysts and institutional investors) (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changes Profit attributable to owners of parent Year ended March 31, 2022 Year ended March 31, 2021 Millions of yen 55,168 55,006 % Millions of yen 3,653 0.3 5,332 (12.5) % Millions of yen 4,029 5,645 (31.5) (12.0) % Millions of yen 2,753 3,860 (28.6) (9.0) % (28.7) (5.2) Earnings per share Diluted earnings per share Ordinary profit/total assets Operating profit/net sales Profit attributable to owners of parent/equity Yen 132.02 185.13 Yen – – % 4.6 6.7 % 5.0 7.3 Total assets Net assets Equity ratio Net assets per share Millions of yen 80,774 79,057 Millions of yen 63,760 61,564 % 76.0 75.1 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen 2,695 4,941 Millions of yen (819) (1,748) Millions of yen (1,643) (1,086) Millions of yen 23,358 22,913 % 6.6 9.7 Yen 2,963.99 2,846.49 Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Total cash dividends (Total) Dividend payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen – – – Yen 22.00 22.00 23.00 Yen – – – Yen 25.00 25.00 25.00 Yen Millions of yen 47.00 47.00 48.00 1,018 1,015 % 25.4 35.6 35.5 % 1.7 1.6 Year ended March 31, 2022 Year ended March 31, 2021 (2) Consolidated financial position As of March 31, 2022 As of March 31, 2021 (3) Consolidated cash flows Year ended March 31, 2022 Year ended March 31, 2021 2. Cash dividends Year ended March 31, 2021 Year ended March 31, 2022 Year ending March 31, 2023 (Forecast) 1 3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changes Profit attributable to owners of parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six months ending September 30, 2022 Full year 26,000 57,500 4.7 4.2 1,300 (19.5) 1,500 (11.2) 1,000 (14.8) 3,900 6.7 4,200 4.2 2,800 1.7 Yen 48.26 135.14 4. Notes (1) Changes in significant subsidiaries during the year ended March 31, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation): (2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: Changes in accounting policies due to other reasons: Changes in accounting estimates: Restatement of prior period financial statements: No Yes No No No (3) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of March 31, 2022 22,859,660 shares As of March 31, 2021 22,859,660 shares As of March 31, 2022 2,140,078 shares As of March 31, 2021 2,003,959 shares Number of treasury shares at the end of the period Average number of shares during the period Year ended March 31, 2022 20,852,930 shares Year ended March 31, 2021 20,850,660 shares 2 As of March 31, 2021 As of March 31, 2022 (Millions of yen) Consolidated financial statements Consolidated balance sheets Assets Current assets Cash and deposits Notes and accounts receivable – trade Notes receivable – trade Electronically recorded monetary claims – operating Accounts receivable – trade Securities Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Land Construction in progress Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Right-of-use assets Software Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 3 21,913 17,436 – 3,426 – 999 4,636 1,566 4,073 396 (4) 54,443 13,533 (6,387) 7,145 8,388 (5,862) 2,526 5,047 20 2,001 (1,776) 225 14,964 519 47 16 583 8,750 3 187 125 (2) 9,065 24,613 79,057 22,358 – 4,102 4,306 11,856 999 5,086 1,724 6,049 392 (4) 56,872 14,120 (6,979) 7,140 8,593 (6,582) 2,011 5,066 319 2,128 (1,902) 226 14,764 542 49 102 694 8,092 1 226 125 (2) 8,443 23,902 80,774 As of March 31, 2021 As of March 31, 2022 (Millions of yen) Liabilities Current liabilities Notes and accounts payable – trade Electronically recorded obligations – operating Short-term borrowings Accrued expenses Income taxes payable Provision for bonuses Provision for bonuses for directors (and other officers) Provision for product warranties Other Total current liabilities Non-current liabilities Long-term borrowings Lease liabilities Deferred tax liabilities Retirement benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets 8,773 1,991 1,317 514 978 637 83 126 1,010 15,434 – 267 1,358 401 31 2,058 17,493 1,954 1,779 54,766 (2,350) 56,149 3,643 (417) (10) 3,215 2,198 61,564 79,057 9,026 2,554 210 553 404 642 66 98 713 14,269 856 283 1,113 458 31 2,744 17,013 1,954 1,788 56,500 (2,598) 57,645 3,209 591 (33) 3,766 2,348 63,760 80,774 4 Consolidated statements of income and consolidated statements of comprehensive income (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Net sales Cost of sales Gross profit Operating profit Selling, general and administrative expenses Non-operating income Interest income Dividend income Rental income from buildings Foreign exchange gains Share of profit of entities accounted for using equity method Miscellaneous income Total non-operating income Non-operating expenses Interest expenses Commitment fees Rental costs Sales discounts Miscellaneous losses Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Total extraordinary income Extraordinary losses Loss on disposal of non-current assets Loss from remittance fraud in foreign subsidiary Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to Profit attributable to owners of parent Profit (loss) attributable to non-controlling interests Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 5 55,006 41,683 13,323 7,990 5,332 42 169 77 15 45 64 415 55 6 9 26 4 0 40 40 7 – 7 102 5,645 5,678 1,735 (14) 1,721 3,956 3,860 96 1,063 (780) 22 4 310 4,266 4,284 (17) 55,168 43,448 11,719 8,065 3,653 41 185 81 32 42 55 438 38 6 9 – 7 62 4 28 32 4,029 43 102 145 3,916 1,230 (36) 1,194 2,722 2,753 (30) (433) 1,219 (23) (0) 761 3,484 3,304 180 (0) 15 – 14 53,271 (996) 3,860 (0) 15 – 2,877 56,149 Consolidated statements of changes in equity Fiscal year ended March 31, 2021 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen) Total shareholders’ equity Balance at beginning of period 1,954 1,779 51,902 (2,365) Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Disposal of treasury shares to stock benefit trust Net changes in items other than shareholders’ equity Total changes during period Balance at end of period – 1,954 1,779 (2,350) 2,863 54,766 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Balance at beginning of period 2,575 248 (32) 2,791 2,290 58,354 Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Disposal of treasury shares to stock benefit trust Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (665) (665) (417) 1,068 1,068 3,643 (996) 3,860 (0) 15 – 332 3,210 61,564 424 424 (92) (92) 3,215 2,198 (996) 3,860 – – 22 22 (10) 6 Fiscal year ended March 31, 2022 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen) Total shareholders’ equity Balance at beginning of period 1,954 1,779 54,766 (2,350) (1,018) 2,753 (255) 16 (9) (247) (2,598) 56,149 (1,018) 2,753 (255) 16 – 1,496 57,645 (1,018) 2,753 (255) 16 – 700 2,196 63,760 – 1,954 1,788 1,734 56,500 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Balance at beginning of period 3,643 (417) (10) 3,215 2,198 61,564 (433) (433) 3,209 1,008 1,008 591 550 550 149 149 3,766 2,348 Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Disposal of treasury shares to stock benefit trust Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Disposal of treasury shares to stock benefit trust Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 9 9 (23) (23) (33) 7 Consolidated statements of cash flows (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Cash flows from operating activities Profit before income taxes Depreciation Increase (decrease) in retirement benefit liability Increase (decrease) in provision for product warranties Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in allowance for doubtful accounts Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity method Loss (gain) on sale of investment securities Loss (gain) on sale of non-current assets Loss (gain) on disposal of non-current assets Loss from remittance fraud in foreign subsidiary Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Other, net Subtotal Interest and dividends received Interest paid Loss from remittance fraud in foreign subsidiary Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale of investment securities Loan advances Proceeds from collection of loans receivable Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Purchase of treasury shares Dividends paid Dividends paid to non-controlling interests Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 8 5,678 1,166 7 23 (1) 2 0 (212) 55 (45) (40) (0) 7 – 63 (32) 24 (121) 6,575 225 (55) – (1,804) 4,941 (1,844) (39) (2) 134 (0) 3 0 (1,748) 0 – – (0) (996) (74) (14) (1,086) (246) 1,859 21,054 22,913 3,916 1,361 8 (28) 5 (17) (0) (226) 38 (42) (28) (3) 42 102 932 (2,118) 534 (77) 4,397 238 (38) (102) (1,800) 2,695 (800) (66) (2) 81 (0) 3 (34) (819) (0) 782 (1,107) (255) (1,018) (30) (14) (1,643) 212 445 22,913 23,358 Revenue Recongnition [Breakdown of Revenue from Contracts with Customers] （1）Sales results by product Product Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Year-on-year Change % (Millions of yen) Generators Welders Compressors Others Revenue from contracts with customers Other revenue Net sales to external customers （2）Sales results by region Region Japan Overseas North/Central America Asia Others Revenue from contracts with customers Other revenue Net sales to external customers 44,020 4,386 755 5,845 55,006 － 55,006 37,737 17,269 10,897 3,948 2,423 55,006 － 55,006 43,754 4,829 727 5,856 55,168 － 55,168 34,632 20,536 13,052 4,596 2,886 55,168 － 55,168 (265) 443 (27) 11 161 － 161 (3,105) 3,266 2,155 647 463 161 － 161 (0.6) 10.1 (3.7) 0.2 0.3 － 0.3 (8.2) 18.9 19.8 16.4 19.1 0.3 － 0.3 Fiscal year ended Fiscal year ended Year-on-year March 31, 2021 March 31, 2022 Change % (Millions of yen) 9