Yokogawa Electric : Presentation Materials of Financial Results for Fiscal Year 2023 (Slides)

Securities Code: 6841

Yokogawa Electric Corporation

Financial Results for Fiscal Year 2023

May 7, 2024

| May 7, 2024 | © Yokogawa Electric Corporation

Contents

1. FY23 Financial Results P. 3

Michiko Nakajima

Vice President

Accounting & Treasury Headquarters

2. Financial Appendix P. 20

Quarterly Financial Results

Non-operating / Extraordinary Income and Expenses Order Backlog Trend by Segment

Control Segment Order Trend by Project Size Trend of R&D Expenses, Depreciation, and CAPEX Trend of Balance Sheet / Trend of Stock Price

3. Reference P. 30

FY23 News

Yokogawa's Main ESG Indexes etc.

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© Yokogawa Electric Corporation

Financial Results for Fiscal Year 2023

(April 1, 2023 - March 31, 2024)

Michiko Nakajima

Vice President

Accounting & Treasury Headquarters

May 7, 2024

| May 7, 2024 | © Yokogawa Electric Corporation

Key Points

• FY23 results: Sales and operating income were up

• Summary:
• • Orders increased.
  • Sales were up due to an improved procurement environment for production parts and project-procured products, the effect of price hike measures, recording sales of large-scale projects ordered after COVID-19, and the impact of foreign exchange fluctuations.
  • Operating income was up mainly due to an increase in the gross profit margin with an increase in sales.
  • Profit attributable to owners of parent increased, mainly due to the increase in ordinary profit and to recording gain on sale of investment securities in extraordinary income, despite recording impairment losses on goodwill, etc. related to overseas subsidiaries in extraordinary losses.
• Segments:

Control: Sales and operating income were up

(excluding the impact of exchange rates, orders increased 1.9% and sales increased 13.8% year on year). Measuring instruments: Sales and operating income were up.

New businesses and others: Sales and operating were almost the same level as the previous fiscal year.

• FY24 earnings forecasts: a year-on-year increase in sales, but decrease in operating income
• FY23 annual dividend forecast: ¥40 (increase of ¥6 from the previous fiscal year)
• FY24 annual dividend forecast: ¥58 (increase of ¥18 from the previous fiscal year)

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Summary of FY23 Results (year on year comparison)

• Orders increased (excluding the impact of exchange rates: +¥4.8 billion, +0.9%).
• Sales were up due to an improved procurement environment for production parts and project-procured products, the effect of price hike measures, recording sales of large-scale projects ordered after COVID-19, and the impact of foreign exchange fluctuations
  (excluding the impact of exchange rates: +¥65.1 billion, +14.3%).
• Operating income was up mainly due to an increase in the gross profit margin with an increase in sales

(excluding the impact of exchange rates: +¥29.7 billion, +66.8%).

• Profit attributable to owners of parent increased, mainly due to the increase in ordinary profit and to recording gain on sale of investment securities in extraordinary income, despite recording impairment losses on goodwill, etc. related to overseas subsidiaries in extraordinary losses
  (excluding the impact of exchange rates: +¥18.7 billion).

Orders

Sales

Operating income

ROS(%)

Ordinary income

Profit attributable to

owners of parent

Exchange	US$1=
rate

FY22	FY23	Difference	Growth rate	Impact of
exchange rate	（Billion ¥）
518.4	542.0	+23.6	+4.5%	+18.8
456.5	540.2	+83.7	+18.3%	+18.6
44.4	78.8	+34.4	+77.4%	+4.7
9.7	14.6	+4.9pt	－	－
48.6	84.1	+35.5	+73.0%	+5.1
38.9	61.7	+22.8	+58.5%	+4.1
¥136.12	¥145.31	+9.19	－	－

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Analysis of Operating Income (year on year comparison)

• Operating income was up mainly due to an increase in the gross profit margin with an increase in sales.

Increase in gross profit

from higher sales

(excluding the impact of

exchange rates)

+29.2

44.4

FY22

operating income

Improvement of		Exchange rates	（¥）
Change in		FY22	FY23
gross margin		compensation system	US$	136.12	145.31
• Increase in gross profit of products +5.0
		for provision for bonuses	EUR	141.70	157.72
• Increase in gross profit of projects +1.2	• Subsidiary/Accounting adjustments
+10.9	(10.9)		+4.7		（Billion ¥）
+0.5

Increase in SG&A
• Costs related to new business /	74.1	78.8
Depreciation of goodwill rerated to
strategic investments (1.8)

FY23	FY23
operating income	operating income

（excluding impact of exchange rates)

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Comparison for Orders, Sales, and Operating Income by Segment

• Control: Orders increased. Sales were up mainly due to an improved procurement environment for production parts and project-procured products, the effect of price hike measures, recording sales of large-scale projects ordered after COVID-19, and the impact of foreign exchange fluctuations (excluding the impact of exchange rates, orders increased ¥9.4 billion, 1.9% increase, and sales increased ¥59.2 billion, 13.8% increase). Operating income was up mainly due to an increase in the gross profit margin with an increase in sales
  (excluding the impact of exchange rates: +¥26.8 billion, +65.1%).
• Measuring instruments: Orders decreased. Sales were up mainly due to the progress in reducing the order backlog as a result of an improved procurement environment for production parts.
  Operating income was up mainly due to an increase in the gross profit margin with an increase in sales.
• New businesses and others: Sales and operating income were almost the same level as the previous fiscal year.

Control	Measuring instruments	New businesses and others	（Billion ¥）
Orders		Sales				Operating income

	518.4	542.0
	3.6
	4.3
	25.9
420.5	28.6
5.5
24.0
	485.4	512.4
391.1
FY21	FY22	FY23

+23.6

(0.7)

(2.7)

+27.0

		540.2	+83.7
		4.5	+0.6
	456.5	31.8	+6.8
389.9	3.8
25.1
6.3
21.2
	427.6	503.8	+76.3
362.4
FY21	FY22	FY23

		78.8	+34.4
		8.1
		+3.5
	44.4
30.7	4.6	71.7	+30.6
3.4
29.8	41.1
(2.5)	(1.3)	(1.0)	+0.3
FY21	FY22	FY23

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Orders and Sales by Region in Control Segment

• Orders remained strong in India, the Middle East, and Africa, but slowed in China.
• Orders: +¥9.4 billion, +1.9% (excluding the impact of exchange rates);
  sales: +¥59.2 billion, +13.8% (excluding the impact of exchange rates)

（Billion ¥）

	Orders	FY22
	(A)
	Japan	134.0
	Asia	168.0
	（Southeast Asia,	71.0
	Far East)
	（China）	76.1
	（India）	20.9
	Europe and CIS	46.4
	Middle East and Africa	71.4
	North America	47.3
	Central and South	18.3
	America
	Outside Japan	351.4
	Consolidated	485.4
	Exchange rate USD1$＝	¥136.12

FY23

(B)

134.5

175.6

79.6

65.9

30.1

52.5

82.9

47.4

19.5

378.0

512.4

¥145.31

Difference

(B-A) +0.4

+7.5

+8.7

(10.3)

+9.1

+6.2

+11.5

+0.1

+1.3

+26.6

+27.0

+9.19

	Sales	FY22
	(A)
	Japan	116.0
	Asia	153.8
	（Southeast Asia,	68.5
	Far East)
	（China）	66.8
	（India）	18.5
	Europe and CIS	42.4
	Middle East and Africa	59.9
	North America	40.7
	Central and South	14.8
	America
	Outside Japan	311.6
	Consolidated	427.6
	Exchange rate USD1$＝	¥136.12

FY23

(B)

129.0

174.2

73.7

74.1

26.4

50.5

82.9

48.1

19.2

374.9

503.8

¥145.31

Difference

(B-A) +13.0

+20.4

+5.2

+7.4

+7.8

+8.1

+23.0

+7.4

+4.4

+63.3

+76.3

+9.19

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Orders and Sales by Control Subsegment

Orders

Difference Growth rate

Sales	（Billion ¥）
Difference Growth rate

		485.4	512.4
		64.5
		59.1
	391.1
Life	54.6	202.0	199.9
Materials	157.5
	179.0	224.3	248.0
Energy &
Sustainability
	FY21	FY22	FY23
Exchange rate
112.94	136.12	145.31
(US$1/¥)

+27.0 +5.6%

+5.4 +9.2%

(2.1) (1.0%)

+23.7 +10.6%

			503.8	+76.3	+17.8%
		427.6	58.6	+3.6	+6.6%
	362.4	55.0
Life	52.1		204.2	+26.0	+14.6%
		178.2
Materials	144.4

			194.4	241.0
Energy &	165.9	+46.6 +24.0%
Sustainability
		FY21	FY22	FY23
Exchange rate	112.94	136.12
145.31
(US$1/¥)

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Orders by Industry in Control Segment

Control Total	88.2	91.5	101.9	109.5	124.9	121.7	130.5	108.3	130.6	120.9	116.5	144.4
															（Billion ¥）
Life	2.8	4.0	2.4	4.8	4.0	4.7	5.0	6.1	6.2	4.0	4.2	4.3	Other Life
			3.6	6.4	5.8	4.1	3.8	5.9	6.0	2.8	4.4	5.7	6.9	4.8	Water
			5.1	5.4	4.8	5.4	4.8	5.5	4.1	6.2	5.6	5.0	5.7	7.7		Pharma/Food
Materials					26.9							28.7
										Other Materials
							24.1	25.1	21.4	22.3	23.1
				18.3		20.6		20.7
			18.0	19.5
			19.2	22.3	18.2	21.4	29.8	23.9	26.5	24.3	28.7	24.3	23.4	28.7	Chemical
Energy & Sustainability					8.3		8.0			9.2	Other E&S
										7.9		1.8	Renewable Energy
					8.1	11.3	7.9	7.0	1.6		1.4	7.0	10.9
					2.0	2.4	3.6	7.9	4.5	1.6	1.1		Power
			7.2		1.2	1.0	4.6	3.6	27.7		4.6	5.8
				3.0	5.0		1.2	28.4	18.6		30.3	Downstream
			0.9	5.9	22.7	19.4	26.9		4.6	23.6
			3.1	1.4	21.2				19.0
			18.7	3.4
			14.6			21.6		22.8		21.0	26.1	18.1	17.9	Upstream
			9.6	9.8	16.2	14.7	17.5	14.9
Quarterly	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
FY21				FY22				FY23
average
rate	109.43	110.44	114.11	117.79	131.25	139.35	140.43	133.44	139.63	145.58	146.14	149.88
(US$1/¥)

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