COMPANY RESEARCH AND ANALYSIS REPORT

SAKAI HEAVY INDUSTRIES, LTD.

6358

Tokyo Stock Exchange Prime Market

28-Dec.-2023

FISCO Ltd. Analyst

Noboru Terashima

FISCO Ltd.

https://www.fisco.co.jp

SAKAI HEAVY INDUSTRIES, LTD.

6358 Tokyo Stock Exchange Prime Market

COMPANY RESEARCH AND ANALYSIS REPORT

FISCO Ltd. https://www.fisco.co.jp

28-Dec.-2023

https://www.sakainet.co.jp/en/ir/

  • Index

■

01

Summary----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

1. Outline of results for FY3/24 1H

01

2. Outlook for FY3/24

01

3. Medium-termgrowth strategy

02

■

03

Company profile---------------------------------------------------------------------------------------------------------------------------------------------------------

■

03

Business overview

----------------------------------------------------------------------------------------------------------------------------------------------------

1. Business description

03

2. Characteristics and strengths

04

3. Market share and competitors

04

■

05

Results trends

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1. Outline of results for FY3/24 1H

05

2. Trends by region

05

3. Financial condition

06

■

07

Outlook

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

• Outlook for FY3/24

07

■

08

Medium-term growth strategy

----------------------------------------------------------------------------------------------------------------------

1. Business strategy

08

2. Capital strategy

08

3. Medium-TermManagement Policy: Progress on KPI

09

4. Sustainability initiatives

09

■

11

Shareholder return policy----------------------------------------------------------------------------------------------------------------------------------

We encourage readers to review our complete legal statement on "Disclaimer" page.

SAKAI HEAVY INDUSTRIES, LTD.

6358 Tokyo Stock Exchange Prime Market

COMPANY RESEARCH AND ANALYSIS REPORT

FISCO Ltd. https://www.fisco.co.jp

28-Dec.-2023

https://www.sakainet.co.jp/en/ir/

  • Summary

For FY3/24 1H, operating profit increased by 84.2% YoY. Particularly strong sales to North America

Sakai Heavy Industries, Ltd. <6358> (hereinafter also referred to as "the Company") is a manufacturer specializing in road rollers for road paving and other road construction equipment. It has a long history in this field, and boasts the industry's highest market share in Japan at over 70%. In recent years, the Company has been focusing on developing overseas markets, especially in North America and Southeast Asia.

1. Outline of results for FY3/24 1H

In the consolidated results for FY3/24 1H, net sales increased 12.7% year on year (YoY) to ¥16,785mn, operating profit increased 84.2% to ¥1,966mn, ordinary profit rose 92.6% to ¥2,109mn, and profit attributable to owners of parent increased 87.4% to ¥1,534mn. The results exceeded the initial forecasts (net sales: ¥16,100mn; operating profit: ¥1,300mn). By region, in Japan net sales were up 3.7% YoY due continued strong sales against a backdrop of measures to accelerate the national resilience plan. Overseas sales were also strong, increasing 21.1%. In particular, net sales increased 36.4% YoY in the U.S. due to increasing investment in road construction following the passing of the Infrastructure Investment and Jobs Act. Sales to Asia were down 3.6% YoY due to signs of slowing growth in ASEAN markets excluding Indonesia, and continued slowdown in China, despite a recovery in demand in Indonesia. The gross margin improved to 29.9% (vs. 25.7% in year-before 1H) due to factors including the effects of sales price revisions, the normalization of transportation costs, and the weak yen. SG&A expenses only increased 10.6%, so operating profit rose significantly.

2. Outlook for FY3/24

Based on a solid performance in 1H, for FY3/24 consolidated results, the Company upwardly revised its initial forecasts (net sales: ¥33,000mn; operating profit: ¥2,950mn), with the new forecast for net sales of ¥33,100mn (up 5.2% YoY), operating profit of ¥3,300mn (up 31.7%), ordinary profit of ¥3,300mn (up 41.8%), and profit attributable to owners of parent of ¥2,300mn (up 35.7%). The Company is assuming an exchange rate of ¥140/USD. The outlook for net sales and profit by customer region has not been disclosed, but the Company's policy is to pursue sales increases in all regions. Global demand for construction machinery is forecast to remain solid as infrastructure investment increases globally, but there are concerns about a dulling of demand in certain areas so the Company is taking a cautious view for 2H. There are still concerns regarding continued increases in materials prices, but based on the strong results in 1H the Company expects the operating profit margin to rise 2.0 percentage points YoY. However, the Company plans to review its progress on a quarterly basis and revise its results forecasts if necessary.

We encourage readers to review our complete legal statement on "Disclaimer" page.

01

11

COMPANY RESEARCH AND ANALYSIS REPORT

FISCO Ltd. https://www.fisco.co.jp

SAKAI HEAVY INDUSTRIES, LTD.

6358 Tokyo Stock Exchange Prime Market

28-Dec.-2023

https://www.sakainet.co.jp/en/ir/

Summary

3. Medium-term growth strategy

In June 2021, the Company released its "Medium-Term Management Policy" which runs through FY3/26. The ultimate goal is to increase corporate value and shareholder value, and in order to achieve this, the Company will promote a "business growth strategy" and an "efficient capital strategy." In terms of numerical targets, in FY3/26, the Company is aiming for net sales of ¥30.0bn, operating profit of ¥3.1bn, ROE (return on equity) of 8%, and will aim to maintain a stable dividend payout ratio of 50%. Results were strong in the first year of the plan in FY3/22 and the second year in FY3/23, and FY3/24 has been solid thus far, but the plan currently remains the same, and the Company has kept these numerical targets unchanged. Regarding the FY3/24 dividend, given the ROE is forecast to exceed 6.0% and the promised dividend payout ratio of 50%, the Company announced an increased annual dividend to ¥270.0 (interim dividend of ¥90.0 and fiscal year-end dividend of ¥180.0). The Company should be rated highly for announcing a clear capital policy to improve ROE and then implementing shareholder returns in accordance with that policy.

Key Points

  • Japan's leading manufacturer of road rollers with a long history. Domestic market share is over 70%, and the Company aims to grow by expanding its overseas market share
  • The Company achieved an 84.2% YoY increase in operating profit in FY3/24 1H, and upwardly revised its full- year forecast as well
  • As medium-term numerical targets, the Company is aiming for net sales of ¥30.0bn, operating profit of ¥3.1bn, and ROE of 8% in FY3/26

Results trends

(¥mn)

Net sales (left)

Operating profit (right)

(¥mn)

35,000

33,100

5,000

31,459

30,000

4,000

3,300

26,599

25,000

22,744

21,624

2,506

3,000

20,000

2,000

1,383

959

701

15,000

1,000

10,000

0

FY3/20

FY3/21

FY3/22

FY3/23

FY3/24 E

Note: The Accounting Standard for Revenue Recognition, etc., has been applied from FY3/22

Source: Prepared by FISCO from the Company's financial results

We encourage readers to review our complete legal statement on "Disclaimer" page.

02

11

SAKAI HEAVY INDUSTRIES, LTD.

6358 Tokyo Stock Exchange Prime Market

COMPANY RESEARCH AND ANALYSIS REPORT

FISCO Ltd. https://www.fisco.co.jp

28-Dec.-2023

https://www.sakainet.co.jp/en/ir/

  • Company profile

The top manufacturer of road rollers with a long history

The Company develops as a specialized manufacturer of road rollers for paving roads and other road construction equipment, and currently, the Company is the top manufacturer in Japan, and boasts a market share of over 70%. In 1970, the Company established a joint venture in Indonesia, as part of the Company's effort to expand business overseas at an early stage. As of FY3/23, the Company has four domestic subsidiaries, and four overseas subsidiaries (U.S., China, two in Indonesia). The Company listed its shares on the Second Section of the Tokyo Stock Exchange in 1964, and its shares were reclassified to the First Section of the Tokyo Stock Exchange in 1981. In conjunction with the Tokyo Stock Exchange's market recategorization in April 2022, it moved to the Prime Market.

  • Business overview

The top manufacturer of road rollers with a domestic market share of over 70%.

Will seek growth by offering high added value and expanding overseas market share

1. Business description

The Company's main business is the manufacture and sale of road rollers used in road paving and other applications, and road roller-related net sales account for approximately 95% of all net sales. Also, the Company's corporate philosophy is to "Contribute to the social project of global land development through the road construction equipment business."

The term "road roller" actually covers quite a wide range of machines in terms of capabilities and size, among other features. The Company has roughly 20 platforms alone for road rollers, and when different variations are added the total number of products is in the 70-80 range. There is also a wide range in sizes, from 1 ton to 20 tons (for large civil engineering projects). The core price range is from ¥5mn (medium-size rollers) to ¥10mn (large rollers), but the Company also has road cutters and other machines that cost tens of millions in yen. Production is carried out on an expected production basis, and the Company does not manufacture machines based on individual orders. The useful lives of the Company's products are in the 20-30 years range, but very few customers use a machine until the end of its useful life. In most cases, they replace it after statutory depreciation (6-7 years) with a new one. Most of the depreciated equipment are resold as used machines to overseas customers (especially in developing countries).

In terms of net sales by region in FY3/23, net sales in Japan were ¥15,208mn (48.3% of total net sales), net sales in North America were ¥7,751mn (24.7%), net sales in Asia were ¥7,796mn (24.8%), and net sales to other regions totaled ¥703mn (2.2%). Moreover, in terms of net sales by region in FY3/24 1Q, net sales in Japan were ¥2,798mn (37.2%), net sales in North America were ¥2,301mn (30.5%), net sales in Asia were ¥2,092mn (27.8%), and net sales to other regions totaled ¥337mn (4.5%).

We encourage readers to review our complete legal statement on "Disclaimer" page.

03

11

COMPANY RESEARCH AND ANALYSIS REPORT

FISCO Ltd. https://www.fisco.co.jp

SAKAI HEAVY INDUSTRIES, LTD.

6358 Tokyo Stock Exchange Prime Market

28-Dec.-2023

https://www.sakainet.co.jp/en/ir/

Business overview

2. Characteristics and strengths

As mentioned above, the Company is a specialized manufacturer of road rollers and other road construction equipment, and the Company has the following special characteristics and strengths.

(1) Long history as a specialized manufacturer

The Company's greatest strength is its long history as a specialized manufacturer of road rollers and other road construction equipment. In other words, by deploying a global niche strategy through selection and concentration, the Company has increased its level of expertise and accumulated its own unique technologies.

(2) Technological capabilities

When it comes to hardening and paving roads, the necessary pressure, torque, and other variables (compaction technology) differ depending on the specific land, land quality, soil, and other conditions. Therefore, roadwork companies often require different types of road rollers to match individual worksites (ground, etc.). Because the Company has been a specialized manufacturer of road rollers and other road construction equipment for many years, it boasts a high level of technological capabilities with respect to compaction technology, and it is not easy for its competitors to catch up to it.

(3) Credibility

Credibility backed by experience engineering and track record is also a strength of the Company. The technology to ensure underground compaction quality is a black box, and is not something that is easy for late-arriving manufacturers and non-specialized manufacturers to copy. For example, asphalt mixture brought in at high temperatures must be worked on within a limited time, and if the work is of poor quality, it must be redone which involves a large price. Also, work quality issues for roads and embankments are slow to emerge, and the compaction quality at the time that work is completed tends to be a black box. For this type of experience engineering, the Company's strength lies in the fact that it is a brand which customers have used for many years and that has accumulated long-term insight due to abundance of worksite experiences, and these are points that have earned the trust of many customers.

3. Market share and competitors

According to data from the Japan Construction Equipment Manufacturers Association, in FY2022 domestic construction equipment shipment value was ¥3.5tn, and road roller and other road construction equipment (the Company's main products) account for 2.3% of this amount. The Company has a share of over 70% in this road equipment market, making it the top manufacturer in Japan. Competitors include companies such as Hitachi Construction Machinery Co., Ltd. <6305>, but none of these companies are specialized manufacturers. Some overseas manufacturers have entered the market in Japan, but none have much of a presence. In Japan, the Company's earnings rise and fall along with the ups and downs of the market.

In the global market, although there are no accurate statistics, the Company's market share (on a units produced basis) is estimated to be in the 5-6% range. However, this is on a global basis, and if we limit the scope to the main markets that the Company operates in (Japan, ASEAN, North America), the Company's market share appears to be around 15%. The Company's main competitors in the global market include Caterpillar , FAYAT SAS, HAMM AG, and Volvo Personvagnar AB, but none of these companies are manufacturers that specialize in road rollers.

We encourage readers to review our complete legal statement on "Disclaimer" page.

04

11

SAKAI HEAVY INDUSTRIES, LTD.

6358 Tokyo Stock Exchange Prime Market

COMPANY RESEARCH AND ANALYSIS REPORT

FISCO Ltd. https://www.fisco.co.jp

28-Dec.-2023

https://www.sakainet.co.jp/en/ir/

  • Results trends

For FY3/24 1H, operating profit increased by 84.2% YoY. Strong sales to North America and other overseas markets

1. Outline of results for FY3/24 1H

In the consolidated results for FY3/24 1H, net sales increased 12.7% YoY to ¥16,785mn, operating profit increased 84.2% to ¥1,966mn, ordinary profit rose 92.6% to ¥2,109mn, and profit attributable to owners of parent increased 87.4% to ¥1,534mn. The results exceeded the initial forecasts (net sales: ¥16,100mn; operating profit: ¥1,300mn).

The gross margin improved significantly to 29.9% (25.7% in the year-earlier period), mainly due to progress in profit structure reform through the sales price revisions in Japan and overseas, the settling down of transportation costs and the effect of the weak yen, along with other factors. On top of this, there was the impact of higher sales, and gross profit increased 31.2% YoY to ¥5,012mn. Meanwhile, SG&A expenses increased by 10.6%, which was in line with the forecast, so operating profit increased significantly.

Analyzing the change factors for operating profit, the increase in net sales had a positive ¥486mn impact, the improvement in the cost of sales ratio had an impact of plus ¥704mn, and the increase in SG&A expenses had an in impact of minus ¥291mn. (Breaking down the increase, personnel expenses had a positive ¥150mn impact, technology and research expenses had a positive ¥38mn impact, promotion and advertising expenses had a positive ¥12mn impact, and other expenses had a positive ¥90mn impact).

Overview of FY3/24 1H consolidated results

(¥mn)

FY3/23 1H

FY3/24 1H

Change

Results

% of net sales

Results

% of net sales

Amount

%

Net sales

14,891

100%

16,785

100%

1,894

12.7%

Gross profit

3,821

25.7%

5,012

29.9%

1,190

31.2%

Selling, general and

2,754

18.5%

3,045

18.1%

291

10.6%

administrative expenses

Operating profit

1,067

7.2%

1,966

11.7%

899

84.2%

Ordinary profit

1,095

7.4%

2,109

12.6%

1,014

92.6%

Profit attributable to

818

5.5%

1,534

9.1%

715

87.4%

owners of parent

Source: Prepared by FISCO from the Company's financial results

2. Trends by region

Looking at each region, in Japan net sales increased 3.7% YoY to ¥7,447mn, as solid sales continued against a backdrop of measures to accelerate the national resilience plan.

Overseas, net sales increased steadily, amounting to ¥9,337mn (up 21.1% YoY) because of progress in the recovery of demand for construction machinery in the main markets in addition to the effects of the weaker yen. Of this amount, in North America net sales increased significantly to ¥4,511mn (up 36.4%) as a result of the market expanding against the backdrop of robust investment in construction, as well as the effects of cultivating dealers and penetration of sales price revisions.

We encourage readers to review our complete legal statement on "Disclaimer" page.

05

11

COMPANY RESEARCH AND ANALYSIS REPORT

FISCO Ltd. https://www.fisco.co.jp

SAKAI HEAVY INDUSTRIES, LTD.

6358 Tokyo Stock Exchange Prime Market

28-Dec.-2023

https://www.sakainet.co.jp/en/ir/

Results trends

In Asia, despite a recovery of demand in Indonesia and strong performance, the slowdown continued in China, while there were signs of slowing growth in ASEAN markets excluding Indonesia. As a result, net sales were ¥3,973mn (down 3.6%). In other regions (Africa, Oceania, Central and South America, etc.), net sales totaled ¥853mn (up 202.0%), due to the realization of ODA projects in Africa.

Net sales by region

(¥mn)

FY3/23 1H

FY3/24 1H

Change

Results

% of total

Results

% of total

Amount

%

Japan

7,181

48.2%

7,447

44.4%

266

3.7%

Overseas

7,709

51.8%

9,337

55.6%

1,628

21.1%

North America

3,307

22.2%

4,511

26.9%

1,204

36.4%

Asia

4,119

27.7%

3,973

23.6%

-146

-3.6%

Other regions

282

1.9%

853

5.1%

570

202.0%

Total

14,891

100%

16,785

100%

1,894

12.7%

Source: Prepared by FISCO from the Company's financial results

Stable financial condition, ample cash and deposits of ¥8,727mn. Currently adjusting inventory levels to the appropriate level

3. Financial condition

In terms of the Company's financial condition as of the end of FY3/24 1H, current assets were ¥30,455mn (up ¥3,014mn from the end of the previous fiscal year). The main factors included a ¥1,242mn increase in cash and deposits, a ¥188mn decrease in notes and accounts receivable - trade (including electronically recorded monetary claims - operating), and a ¥1,653mn increase in inventories. Non-current assets were ¥14,808mn (up ¥1,444mn). The main factors include a ¥275mn increase in property, plant and equipment, a ¥43mn decrease in intangible assets, and an ¥1,212mn increase in investments and other assets (mainly a ¥1,228mn increase in investment securities). As a result, total assets were ¥45,263mn, an increase of ¥4,459mn. Cash and deposits remained at a high level of ¥8,727mn as of the end of FY3/24 1H, but on the other hand, given the fact that the level of inventories remained at a slightly high level after rising due to an increase in production and as part of the response to parts shortage issues, it appears that the Company will work to adjust inventories to an appropriate level going forward.

Total liabilities were ¥17,132mn (up ¥1,623mn from the end of the previous fiscal year). The main factors among current liabilities included a ¥706mn increase in payables (notes and accounts payable - trade and electronically recorded obligations - operating), a ¥164mn increase in short-term borrowings, and a ¥477mn increase in non-current liabilities. Total net assets stood at ¥28,131mn (up ¥2,835mn), with the main factors including a ¥1,025mn increase in retained earnings due mainly to recording of profit attributable to owners of parent, an ¥861mn increase in valuation difference on available- for-sale securities, and a ¥857mn increase in foreign currency translation adjustment. As a result, the equity ratio as of the end of FY3/24 1H was 62.0% (61.8% at the end of the previous fiscal year).

As a result of the above, net working capital (trade receivables + inventories - trade payables) at the end of FY3/24 1H increased by 20.6% to ¥12,528mn (up ¥2,144mn YoY). This was mainly due to a decrease in trade receivables (down ¥98mn), an increase in inventories (up ¥3,044mn) and a decrease in trade payable (down ¥802mn). The inventory turnover decreased 0.53 times YoY to 3.00 times per year, mainly reflecting an increase in inventory levels due to increased production and to reduce risk of part shortages, despite steady sales (net sales).

We encourage readers to review our complete legal statement on "Disclaimer" page.

06

11

COMPANY RESEARCH AND ANALYSIS REPORT

FISCO Ltd. https://www.fisco.co.jp

SAKAI HEAVY INDUSTRIES, LTD.

6358 Tokyo Stock Exchange Prime Market

28-Dec.-2023

https://www.sakainet.co.jp/en/ir/

Results trends

Net working capital

(¥mn)

FY3/23 1H

FY3/24 1H

Change

Results

Results

Amount

%

Consolidated net sales

28,503

33,353

4,850

17.0%

(annualized consolidated net sales)

Trade receivables

9,373

9,275

-98

-1.0%

Inventories

8,061

11,105

3,044

37.8%

Trade payables

-7,050

-7,852

-802

11.4%

Net working capital

10,384

12,528

2,144

20.6%

Inventory turnover (times)

3.54

3.00

-0.53

Note: Consolidated net sales (annualized) = Net sales in 1H of the fiscal year under review + cumulative net sales in 2H of previous fiscal year

Source: Prepared by FISCO from the Company's results briefing materials

  • Outlook

FY3/24 forecast is for a 31.7% YoY increase in operating profit

  • Outlook for FY3/24

For FY3/24 consolidated results, the Company is forecasting net sales of ¥33,100mn (up 5.2% YoY), operating profit of ¥3,300mn (up 31.7%), ordinary profit of ¥3,300mn (up 41.8%), and profit attributable to owners of parent of ¥2,300mn (up 35.7%). These represent upward revisions to its initial forecasts (net sales of ¥33,000mn and operating profit of ¥2,950mn). The Company is assuming an exchange rate of ¥140/USD.

The outlook for net sales and profit by region has not been disclosed, but the Company's policy is to pursue sales increases in all regions. Demand for construction machinery is forecast to remain stable as infrastructure investments increase globally. On the other hand, there are many uncertain factors such as global inflation, security issues, and social structural changes, but by promoting profit structure reform, improving productivity and creating new added value, and modifying global business activities, it is forecasting that the operating profit margin will increase by 2.0 points YoY.

Despite the strong results in 1H, the Company's forecasts for the full year are somewhat conservative. The Company has stated that the outlooks for both China and ASEAN are uncertain, and that the strong results that it has been enjoying in the U.S. may be peaking, so it is taking a cautious view. However, if these concerns do not end up materializing as much as forecast, we at FISCO think there is a possibility that the Company's current forecasts could be upwardly revised yet again. The Company has stated that it will make revisions as necessary when quarterly results are announced, so attention must be given to future developments.

Consolidated outlook for FY3/24

(¥mn)

FY3/23

FY3/24

Change

Results

% of net sales

Results

% of net sales

Amount

%

Net sales

31,459

100%

33,100

100%

1,641

5.2%

Operating profit

2,506

8.0%

3,300

10.0%

794

31.7%

Ordinary profit

2,327

7.4%

3,300

10.0%

973

41.8%

Profit attributable to owners of parent

1,694

5.4%

2,300

6.9%

606

35.7%

Source: Prepared by FISCO from the Company's financial results

We encourage readers to review our complete legal statement on "Disclaimer" page.

07

11

SAKAI HEAVY INDUSTRIES, LTD.

6358 Tokyo Stock Exchange Prime Market

COMPANY RESEARCH AND ANALYSIS REPORT

FISCO Ltd. https://www.fisco.co.jp

28-Dec.-2023

https://www.sakainet.co.jp/en/ir/

  • Medium-termgrowth strategy

As its medium-term growth strategy, the Company will seek to grow its overseas market share, expand overseas business domains, and create added value by developing next-generation businesses. FY3/26 targets of net sales of ¥30.0bn and operating profit of ¥3.1bn are unchanged

In June 2021, the Company released its "Medium-Term Management Policy" which runs through FY3/26. The ultimate goal is to increase corporate value and shareholder value, and in order to achieve this the Company will promote a "business growth strategy" and an "efficient capital strategy." In terms of numerical targets, the Company is aiming for net sales of ¥30.0bn, operating profit of ¥3.1bn, ROE of 8% in FY3/26, and will aim to maintain a stable dividend payout ratio of 50% (DOE of 4%). The forecasts for FY3/24 already exceed these targets, but the policy currently remains the same, and the Company has kept these numerical targets unchanged.

1. Business strategy

  1. Domestic market: Create added value through stabilization and developing next-generation businesses The domestic market for road rollers is already in its mature phase and the Company's market share is large. Therefore, the Company will aim to grow by adding new value to existing products (high-performance, etc.), in other words, by developing next-generation businesses.
  2. Overseas markets: Increase market share and expand business domains

In overseas markets, there are many regions (countries) where demand is increasing, and there is significant room for growth given the Company's low market shares. Therefore, the Company will seek growth through the two strategies of more fully cultivating existing markets and expanding its business domains.

(3) Numerical targets

As medium-term numerical targets, the Company aims for net sales of ¥30.0bn, operating profit of ¥3.1bn, and ROE of 8% in FY3/26.

2. Capital strategy

As its basic policy for capital strategy, the Company will return profits to shareholders at a level that supports the Company's objective of ROE of 8%, and will increase shareholder value (improve capital efficiency). As a final target for FY3/26, the Company will strive to achieve ROE of 8% and a 50% dividend payout ratio.

Generally, two things need to be improved in order to increase ROE. One is of course increasing profit attributable to owners of parent, while the other is suppressing shareholders' equity (not increasing shareholders' equity more than necessary, or decreasing it). In order to increase operating profit, the Company plans to promote the business strategies discussed above, but at the same time, in order to keep from increasing shareholders' equity more than needed, the Company plans to execute a dividend policy in which, if ROE falls below 3%, the dividend payout ratio will be 100%, if ROE is between 3% and 6%, the DOE will be 3%, and if ROE is above 6%, the dividend payout ratio will be 50%.

We encourage readers to review our complete legal statement on "Disclaimer" page.

08

11

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SAKAI Heavy Industries Ltd. published this content on 29 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 December 2023 00:31:38 UTC.