Meidensha : Results Briefing for FY2022.Q4

MEIDENSHA CORPORATION

RESULTS BRIEFING FOR FISCAL 2022

May 12, 2023

Takeshi Miida, President & Executive Officer

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Table of Contents

1. FY2022 Results
2. FY2023 Forecasts
3. Topics

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1. FY2022 Results Summary (1)

Orders: ¥302.9 billion	Net sales: ¥272.5 billion	Operating income ¥8.5 billion
YoY change	Orders (+¥43.3 billion)	Net sales (+¥17.5 billion) Operating income (-¥0.9 billion)
Difference from initial forecasts	Orders (+¥32.9 billion)	Net sales (+¥2.5 billion) Operating income (-¥3.4 billion)

Although record orders were posted, rising material prices and prolonged delivery times for parts and materials placed downward pressure on income

YoY change

- Power Infrastructure	Sales and income increased in overseas Power T&D due to a recovery in demand in Singapore, and an	Net sales	+8.1
	increase in demand for environmentally friendly products in North America.	Operating income	+1.3
	In Japan, sales and income decreased due to the strong impact associated with prolonged delivery times
	for various parts and materials.
- Public, Industrial &	Sales and income increased in Railways due to signs of recovery in equipment demand mainly in Japan.	Net sales	(4.3)
Commercial Sector	Sales and income decreased decreased in Social Infrastructure Systems and Water Infrastructure due to	Operating income	(3.7)
	prolonged delivery times for various parts and materials and rising material and parts prices.
- Mobility & Electrical	Sales and income increased due to growth in demand for forklifts in Motor Drive Solutions and an	Net sales	+14.3
Components	expansion of models delivered in EV.	Operating income	+1.9
Although sales increased in Electronics Products, income decreased due to reduction of plant operation,
	etc. associated with changes in demand in the latter half of the fiscal year.
	Although sales decreased in Mobility T&S, which continued to face a difficult order environment, income
	increased due to the effect of revising business structure.
- Field Engineering	Although sales increased slightly against the backdrop of steady demand for maintenance services,	Net sales	+0.1
	income decreased due to changes in the product mix and the impact of rising prices of various parts and	Operating income	(0.6)

materials.

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1. FY2022 Results Summary (2) (Analysis of Difference from Initial Forecasts)

The impact of the decline in profit due to rising material prices was a

deterioration of ¥2.5 billion compared to initial forecasts

Profit deteriorated due to the decrease in sales in Power & Energy, Water Infrastructure, and Field Engineering resulting from prolonged delivery times for parts and materials, and slowdown of the semiconductor market

■ Factor analysis of operating income (Comparison of initial forecast and results for FY2022)	(Billions of yen)

12.0

~~~~~~~

FY2022

Initial

Forecasts

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Impact of prolonged delivery

(2.5)

times for parts and materials

(Decrease in sales and delays of

products with high added value)

Improved

income due

to weak yen

(1.3)

+0.4

+0.6

Cost reduction

(0.7)

Savings on

Net impact of high material and part prices in

expenses

Reduction of plant operation due

FY2022

8.5

to changes in semiconductor

Initial forecast -¥2.0 billion ->Result -¥4.5billion

market conditions (Electronics

Difference: -¥2.5 billion

Products)

Net impact

Initial forecast -¥2.0 billion ->Result -¥4.5billion

■Power Infrastructure

~~~~~~~

Initial forecast -¥0.5 billion ->Result -¥0.8billion

■Public, Industrial & Commercial Sector

FY2022

Initial forecast -¥0.9 billion ->Result -¥2.5billion

■Mobility & Electrical Components

Results

Initial forecast -¥0.6 billion ->Result -¥1.1billion

■Field Engineering

Initial forecast ¥0.0 billion ->Result -¥0.1billion

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1. FY2022 Results Overview (1)

Sales increased and income decreased year on year and compared to forecasts, total interest-

bearing debt increased slightly year on year, and FCF decreased

(Millions of yen)		FY2022	FY2022			Difference	Initial	Revised
FY2021	FY2022		from FY2022
Initial	Revised	YoY	Forecasts	Results
			Results	Results	results
			Forecasts	Results	change %
			(A)	(D)
			(B)	(C)			(D - B)	(D - C)
						(D - A)
	Orders		259,635	270,000	290,000	302,938	116.7%	43,302	32,938	12,938
	Net sales		255,046	270,000	268,000	272,578	106.9%	17,532	2,578	4,578
	Operating		9,468	12,000	9,000	8,539	90.2%	(928)	(3,461)	(461)
	income
	Ordinary income		10,206	12,000	9,200	8,823	86.5%	(1,382)	(3,177)	(377)
	Net income		6,733	8,400	7,500	7,128	105.9%	394	(1,272)	(372)
	attributable to
	owners of the parent
	Total
		290,899			307,390	105.7%	16,491
	assets
	Shareholders'		101,966			107,897	105.8%	5,931
	equity
	Net assets		105,421			110,881	105.2%	5,459
	Shareholders'		35.1%			35.1%		0.0%
	equity
	Ratio
	Total interest		48,466			50,509	104.2%	2,042
	bearing debt
	FCF		3,886			3,235		(650)

* Total interest bearing debt: Short-term borrowings + Long-term debt + Commercial paper + Bonds payable

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