Abalance ) : Fiscal Year Ended June 30,2023 Performance Highlights and Future Outlook

FY06/23 Performance Highlights

and Future Outlook

Abalance Corporation

TSE Standard: 3856 / August 2023

Corporate Profile

■ Company name	Abalance Corporation (Group Holding Company)
■ Establishment	April 17, 2000
■ Business segments	Solar Panel Manufacturing Business, Green Energy Business, IT Business, Photocatalyst
	Business

• Primary consolidated subsidiaries VSUN, Vietnam Sunergy Cell Company Limited, WWB, Valors, Abit, Japan Photocatalyst Center
  Consolidation of Vietnam's VSUN as a subsidiary (October 2020)
• • In recent years, significant growth in panel sales to the US
  • Japan's leading solar panel manufacturer (annual production capacity of 5.0GW)
    (Source: BloombergNEF, Tier1 PV Module Maker List (May 23, 2023)
  • Pursuing overseas IPO for growth capital acquisition

■ Equity-method affiliate	Meiji Machine Co., Ltd. (TSE Standard/Securities Code: 6334)
■ Head office	Tennozu First Tower 16F 2-2-4 Higashishinagawa, Shinagawa-ku, Tokyo
■ President & Representative Director	Yasuaki Mitsuyuki
■ Stock listing	TSE Second Section (Oct. 2018) ⇒ TSE Standard (Apr. 2022)
■ Fiscal year-end	June
■ Total assets (end-Jun. 2023)	144.1 billion yen
■ Net assets (end-Jun. 2023)	23.3 billion yen
■ Performance results (FY06/23)	Net sales: 217.4 billion yen, Ordinary Profit: 14.8 billion yen
■ Performance forecast (FY06/24)	Net sales: 251.8 billion yen, Ordinary Profit: 15.8 billion yen
■ No. of employees (end-Dec. 2022)	341 in Japan (incl. affiliates); 1,500 overseas (VSUN,etc.)

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Performance Highlights [FY06/23]

Sales and profit growth for three consecutive fiscal years; the highest profit recorded in FY06/23. Consolidated net sales: 217.4 billion yen (2.4 x YoY), Ordinary profit: 14.8 billion yen (9.8 x YoY).

Reasons for sales growth:	energy	Reasons for profit growth:	shipping cost
	 Global demand for renewable		 Price pass-through, decline in
	Expansion of panel sales to the US and Europe	 Increased electricity sales (recurring revenue business)
	Inflation countermeasures (price pass-through)		Foreign exchange gains (due to a weaker yen)
					Equity method investment gains (Meiji Machine, etc.).

Ordinary profit (billionsof yen)

16.0

14.0

Consolidated Performance

Net sales (billions of yen)

250.0

217.42 14.80

12.0 The group achieved remarkable increase

in sales and profit driven by VSUN

10.0

8.0

6.0						92.44
4.0
2.0			26.90	1.51
	6.68		1.27
0.0			0.31
	FY06/20	FY06/21	FY06/22
					Net sales	Ordinary profit

200.0

150.0

100.0

50.0

0.0

FY06/23

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Performance of Key Segments

Solar Panel Manufacturing Business (VSUN)

• Significant increase in sales and segment profit.
• Sales of solar panels to the US and Europe exceeded expectations.
• Price pass-through and reduced container freight costs led to improved profit margins (especially in 2H.
• Plant No.4 (for panel manufacturing) began operations in stages from January 2023.

(Billions of yen)

	FY06/22	FY06/23	YoY
		Vietnam Sunergy Joint Stock Company (VSUN)
Net sales	81.78	206.81	+153%
Segment profit	1.24	12.70	+926%

Green Energy Business (WWB, VALORS)

• Steady advancement of the recurring revenue business (company ownership, securing stable income).
• Acquisition of a solar power plant (in Ibaraki Prefecture with a first-year revenue projection of about 350 million yen).
• Operations in FY06/23: the Taiwa/Ohira power plant in Miyagi Prefecture, Kamisu power plant in Ibaraki Prefecture, among others.
• Actively pursuing non-FIT projects as a PPA operator.

			(Billions of yen)
	FY06/22	FY06/23	YoY
Power plant and	7.58	6.94	-8%
product sales
Electricity sales & O&M	2.65	3.19	+20%
(recurring revenue)
Net sales	10.23	10.13	-1%
Segment profit	1.20	1.84	+53%

[WWB Kamisu Solar Power Plant] An example of an operational project developed in Kamisu, Ibaraki Prefecture.

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Consolidated Performance Forecast for FY06/24

*Announced on August 18

Consolidated Sales: 251.8 billion yen (+16% YoY),

Ordinary Profit: 15.8 billion yen (+7% YoY)

➡The cell plant (Phase 1) is scheduled for completion in October 2023.

			(Billions of yen)
	FY06/23	FY06/24	Change (YoY)
	Actual	Forecast
Net sales	217.42	251.80	+16%
Panel Manufacturing Business (=VSUN)	206.81	239.00	+16%
Domestic Business (One-Time Revenue)*	7.42	7.80	+5%
Domestic Business (Recurring Revenue)*	3.19	5.00	+57%
Operating profit	13.57	15.80	+17%
Ordinary Profit	14.80	15.80	+7%
Profit attributable to owners of parent	5.45	7.00	+29%
Earnings per share	321.68 yen	413.53 yen	-

• One-timerevenue includes sales from the Green Energy Business's power plant sales and merchandise, as well as sales from the IT Business and Photocatalyst Business.
• Recurring revenue accounts for electricity & O&M sales from the Green Energy Business.

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