FY 2024
1Q Financial Material
Daitron Co., Ltd.
Securities Code: 7609

Outline of Consolidated Settlement of Accounts（performance results and earnings forecasts)

2

Quarterly Performance Change■ 1Q cumulative performance■ Operating income¥ 1,108 mil.
（51.7% y/y）

Net Sales¥21,095 mil.
（ 86.3% y/y）

■ Ordinary income■ Net income *¥ 1,183 mil.
¥

（55.2% y/y）

769 mil.

（53.7% y/y）Graph of quarterly performance change

Net Sales

Operating income

Net income *Ordinary income（mil. yen）

2,142
24,446
21,412

22,4002,141

23,89821,095
1,332

1,394
1,255

1,214

1,108

1,433
1,287

1,193 1,183
922

23/1Q

23/2Q

23/3Q

23/4Q

24/1Q

23/1Q 23/2Q 23/3Q 23/4Q 24/1Q* Net income attributable to owners of parent

23/1Q 23/2Q 23/3Q 23/4Q 24/1Q

860

799

769

23/1Q 23/2Q 23/3Q 23/4Q 24/1Q

3

Product Segment Quarterly Performance ChangeElectronic Equipment & Components

Manufacturing Equipment
22,00022,000(mil. yen)(mil. yen)
20,00018,00016,00014,00012,00018,687

17,352
258 17,242
17,084 345 17,242
990
16,376146
16,028
229
426
902
418
946 1,178
14,963 272
1,939 943
248
325
515

4,484

6,000

740

801
620

5,661
5,036

4,612

555
1,339

595
1,323

624
1,476

1,511

1,631

1,791

4,876

842

934

4,901
5,408

756

10,000

8,000

330
701

2,049
2,008

775
1,967
2,049

1,865

18,00016,0001,116

14,0005,196

12,00010,000840
2,042

20,000

924

850
1,998
1,450
1,465 1,460

4,000

8,000

6,000

6,140

6,034

6,063

5,743

2,000

5,187

4,961 5,179

3Q/23

4Q/23

0

6,544

5,667 1,398 5,759
536

5,316

1,685
836 4,170
1,049
1,906
3,853
2,319
1,593 826
1,572
2,247
632
1,351 2,579
1,444
3,455 2,751 3,791 3,330
3,287
1,993 1,688
1,777
669

4,000

5,986

7,095

6,310

2,000

0

2Q/22

3Q/22

4Q/22

1Q/23

2Q/23

1Q/24

ElectronicComponents
Components & &Assembly
Products
Electronic
Assembly
Products Semiconductors
Semiconductors
Embedded System
Embedded System
Power Supply Equipment
Power
Supply Equipment
Image-Related Equipment& Components
Image-Related Equipment & Components
Information System
Information
SystemGreen
Facility
Other
Electronic
Equipment
Green Facility
Other Electronic
Equipmentand
and Components
Components

2Q/22

3Q/22

4Q/22

1Q/23

2Q/23

3Q/23

4Q/23

1Q/24

Semiconductor/FPD Manufacturing Equipment
Semiconductor/FPD
Manufacturing Equipment Electronic Component Manufacturing Equipment
Other Manufacturing Equipment
Electronic Component Manufacturing Equipment
Other Manufacturing Equipment

4

Consolidated Financial Position Comparison (y/y)
FY 2023

1Q/2024

Difference（mil. yen）
Total assets

67,78866,192△1,596

Total liabilities

38,33736,393△1,944

Shareholders’equity29,42829,779351

Net assets

29,451

29,799348

Equity ratio

43.4％

45.0％

1.6Pt

Net asset per
share（yen）

2,650.52

2,682.15

31.63
5

Performance Change by Report Segment
Net Sales from External Customers

Operating Income
2,142
1,108

30,000(mil. yen)(mil. yen)
25,00024,446
5,180

21,095878

4,194

20,000772
15,00010,00018,387

16,1285,000

01Q/2023
Domestic Sales Business1Q/2024

Domestic Manufacturing Business(Reference) Domestic Manufacturing BusinessTotal net sales including inter-segment sales

1Q/2024

2,408 mil. yen(1Q/2023

2,559 mil. yen)

Global Business1Q/2023

1Q/2024

Domestic Sales Business

Domestic Manufacturing Business

Global Business

Adjustment** Adjustment includes inter-segment eliminations
and corporate expenses that are not allocatedto individual reportable segment

6

Business Structure of the Company 1Q/2024 performance
Business

By product segment
Electronic Components& Assembly ProductsElectronic Equipment &Components

Semiconductors
Embedded System
Power Supply Equipment
Image-Related Equipment& Components
Information System

Sales composition
ratio

Gross profit
margin

24.6%

24.8%

（23.0% 1Q/2023）（8.2% 1Q/2023）（22.0% 1Q/2023）

North
America（8.4% 1Q/2023）（16.1% 1Q/2023）（2.4% 1Q/2023）（3.1% 1Q/2023）（19.6% 1Q/2023）（23.1% 1Q/2023）（14.5% 1Q/2023）（3.7% 1Q/2023）（22.2% 1Q/2023）

6.9%
9.5%
4.4%

24.6%
5.3%
2.0%

19.6%

17.0%
13.0%
23.2%

△22.4%

Manufacturing New
BusiEquipmentness（△12.5% 1Q/2023）

Semiconductor/FPD
Manufacturing Equipment（13.6% 1Q/2023）（19.7% 1Q/2023）（6.5% 1Q/2023）（27.9% 1Q/2023）（3.4% 1Q/2023）（16.2% 1Q/2023）（4.1% 1Q/2023）（43.5% 1Q/2023）

Green Facility

Total

8.4%
6.8%
3.0%
4.5%

100.0%

6.4%

18.3%

（1.1% 1Q/2023）

Other Manufacturing
Equipment

Overseas sales
ratio（24.8% 1Q/2023）

Other Electronic Equipment
and Components

Electronic Component
Manufacturing Equipment

Original productratioEurope15.3%（14.0% 1Q/2023）

0.3%（0.4% 1Q/2023）

20.2%
26.0%
24.2%

Asia

13.1%

（18.5% 1Q/2023）

19.2%
19.0%

（20.3% 1Q/2023）

19.8%（21.4% 1Q/2023）

shows the product segments including Daitron's original products.

7

Year-on-year net sales by area
（mil. yen）

1Q/2023

1Q/2024

Difference

Domestic

19,225

16,916△2,309Overseas

5,220△1,041(21.4%)

4,179（19.8%）（△1.6pt）

North
America

597

1,356

759

Europe

102

68

△34

Asia

4,521

2,755

△1,76624,44621,095△4,517

The figures in parentheses
are sales ratio

Total

8

Quarterly Order Change（by product segment）
Electronic Equipment & Components
24,000(mil. yen)

21,816

Manufacturing Equipment
24,000(mil. yen)

281
20,571420 18,902
20,000 18,762

22,00018,00018,00022,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000

169 1,709 976
5,738
1,112 689 667
15,383
14,875624
865
14,78014,531
143
753
795
13,342 108 147
5,046
5,276
330 2,561 174 747 1,225
5,534
4,596 951 719 937 1,156 822
1,343
842
709
3,996
1,748 771
894
3,940
1,858
5,136 4,617
4,536
2,261 2,096
2,335
671
2,217
611
645
1,842 1,927 1,743 1,469 602 632 1,275
1,412 1,322 1,192 1,413 807
780 842
6,797 7,281 5,986
5,531 4,882 4,584
5,371
4,279 4,497

20,00016,00014,000

1Q/22 2Q/22 3Q/22 4Q/22 1Q/23 2Q/23 3Q/23 4Q/23 1Q/24
Electoronic Components & Assembly Products
Semiconductors
Electronic
Components & Assembly Products
Semiconductors
Embedded System
Embedded System
Power Supply Euipment
Power
SupplyEquipment
Image-Related
Equipment&
Components
Image-Related Equipment & Components
Information System
Information
System Green Facility
Other Electronic
Equipment
andComponents
Components
Green Facility
Other Electronic
Equipment and

9,277

10,000

7,887
8,000
6,000
4,000
2,000
0

0

10,991

12,000

1,060
1,961

763
8,298 1,409

2,366 800
2,652

6,321

6,356

4,894

1,048
3,421
2,308
4,337 1,153
8,819 759
3,512
1,212
1,032
1,012 1,979 1,038
4,866
4,846
4,120 1,813
3,490
2,546
2,069 2,644687
1Q/22 2Q/22 3Q/22 4Q/22 1Q/23 2Q/23 3Q/23 4Q/23 1Q/24

Semiconductor/FPD Manufacturing
Equipment
Semiconductor/FPD
Manufacturing
Equipment Electronic Component Manufacturing Equipment
Electronic
Component Manufacturing Equipment
Other Manufacturing Equipment
Other Manufacturing Equipment

9

Quarterly Order Backlog Change（by product segment）
Electronic Equipment & Components
50,00050,000(mil. yen)(mil. yen)

43,66345,0001,326

40,00038,14735,162 1,446 8,177

45,00039,585
1,655 37,777
1,671 34,101

715 3,240
1,643 31,335
29,3832,903 996 1,129 7,517
1,42629,128
9,132
1,224
30,000511 832
1,179
7,434
7,440
1,519
8,892
657 6,933
5,773 1,157
7,700
25,0002,906
7,982
6,341 2,454 2,634
4,842 1,157
2,822
1,379
20,0004,323
4,943
2,694 4,483 4,216 1,086
1,661 3,385
4,637
2,974
4,139 2,458 2,241 3,666
15,0005,770 6,011 6,166
1,932
3,289
4,906
5,573
3,252 2,529
4,854
10,0003,778 3,163 2,514
35,0005,000

Manufacturing Equipment

10,814 12,170 12,057 11,582 10,429 9,288

8,401 7,958 8,195

40,247
39,63938,47939,26338,31838,0805,020
35,3444,823
6,226

40,00035,00032,6735,445
29,64930,000
8,615
5,290

3,428

4,989 5,617

4,795

8,023
8,218

7,260 7,669 7,265

9,105

25,0007,572 8,690
20,00015,00010,00025,82525,067 27,20426,23025,03226,148
18,64918,693

20,794

5,000

0

0

1Q/22 2Q/22 3Q/22 4Q/22 1Q/23 2Q/23 3Q/23 4Q/23 1Q/24
Electoronic
Components & &Assembly
Products
Semiconductors
Electronic
Components
Assembly
Products
Semiconductors
Embedded System
Embedded System
Power Supply Euipment
Power Supply Equipment
Image-Related Equipment & Components
Image-Related Equipment & Components
Information System
Information
System Green Facility
Other Electronic
Equipment
Components
Green Facility
Other Electronic
Equipment andand Components

Order Backlog for sales from next year onwards
・Electronic Equipment and Components
6,955 mil.yen
・Manufacturing Equipment
22,467 mil.yen
・total29,422 mil.yen

1Q/22 2Q/22 3Q/22 4Q/22 1Q/23 2Q/23 3Q/23 4Q/23 1Q/24
Semiconductor/FPD Manufacturing
Equipment
Semiconductor/FPD
Manufacturing
Equipment Electronic Component Manufacturing Equipment
Electronic
Component Manufacturing Equipment
Other Manufacturing Equipment
Other Manufacturing Equipment

10Consolidated Performance Forecast（full-year）■ Operating income¥6,000 mil.
（100.9% y/y）■Net Sales¥92,500 mil.
（100.4% y/y）

■ Ordinary income¥6,000 mil.
（99.7% y/y）

■ Net income*¥4,000 mil.
（99.6% y/y)

Net Sales

Operating income

Ordinary income

Net income *（mil. yen）

87,6396,210 6,015

6,051 5,943 6,000

92,156 92,500

72,341

6,000

4,325

4,196

4,237 4,014

57,418

4,000

2,953
2,436

2,403

1,610
43,000

2,200

2,200
1,450

FY2020

FY2021

FY2022

FY2023

FY2024
forecast

FY2020 FY2021 FY2022 FY2023 FY2024
forecast* Net income attributable to owners of parent
Figures shown as
represent the forecast for the second quarter.

FY2020 FY2021 FY2022 FY2023 FY2024
forecast

FY2020 FY2021 FY2022 FY2023 FY2024
forecast11Performance Change and Forecast by Product Segment
Electronic Equipment & Components
75,00070,366(mil. yen)

979

70,00063,27265,000

1,333
3,312
2,422

60,00054,56155,000976

50,00045,00040,00042,063
889
2,070
2,317

35,00030,00013,29025,00020,00015,00010,000
5,000

1,831
3,349
3,028
15,2895,394
2,201
16,776
1,921
4,323
3,894

19,076

5,053
3,419

18,761

6,269

23,43575,000

1,672

70,000

5,245
2,997

65,000(mil. yen)(mil. yen)

60,00055,00020,846

2,297
5,443

69,225

Manufacturing Equipment

20,47350,00045,000

3,221
7,507
7,387

21,95440,000

3,094
7,054
6,172

22,51835,00030,00024,36725,00020,00015,35515,000

2,776
5,103

10,0005,000

17,780

2,843

1,469
7,887

8,553

7,476

8,424

FY2020

FY2021

12,971

21,79023,275

4,396

4,901

7,095

6,853

10,29911,521

FY2023

FY2024
forecast

00

FY2020

FY2021

FY2022

FY2023

FY2024
forecast

Electronic Components & Assembly Products
Semiconductors
Embedded System
Power Supply Equipment
Image-Related Equipment & Components
Information System Green Facility
Other Electronic Equipment and Components

FY2022

Semiconductor/FPD
Manufacturing
Semiconductor/FPD Manufacturing
EquipmentEquipment Electronic Component Manufacturing Equipment
Electronic
Component
Manufacturing Equipment
Other Manufacturing Equipment
Other Manufacturing
Equipment

12

Dividend(yen)

2Q end（interim）

Period-end

Annualdividend（interim +period-end）

Initialforecast

Payoutratio

FY 2020

20

30

50

50

34.4%

FY 2021

35

*45

*80

55

30.1%

FY 2022

45

70

115

80

30.1%

FY 2023

50

70

120

115

33.2%

FY 2024
forecast

50

70

120

33.3%

*Notes Period-end dividend detail : ordinary dividends 35.00 yen, commemorative dividends 10.00 yen
Annual dvidend detail : ordinary dividends 70.00 yen, commemorative dividends 10.00 yen

13

11th Medium-Term Business Plan
【 FY2024～FY2026 】

14

Evaluation of 10M (i) Quantitative Evaluation:
Performance Results, Management Indices, etc.
Continuing from the 9M (9th Medium-Term Business Plan), we succeeded insteadily achieving record high growth in both sales and profit under the
10M (10th Medium-Term Business Plan).
Net Sales
Operating income（100mil. yen）

Record high sales for 3rdconsecutive period

Hit record highs in both sales andprofit for 2nd consecutive period

Record high sales for 2nd
consecutive period
1000

Hit record
highs in bothsales and profit
800

616

596
600

516

400

35.4

Hit record
highs in bothsales and profit 876

921

60.5

59.4

COVID-19
pandemic

723

574

41.9

80.0

60.0

32.0

40.0

24.0

25.2

20.0

Main Management Indices (Result of 2023)

Equity ratio

ROA

ROE

Result ofResult ofResult of

to a target of50%

to a target of
6% or above

43.4%

14.5%

to a target of
12% or above

KPIs for business structure reform(Result of 2023)

Stability + Challenge
axis
Composition ratio bybusiness

Profit axis

Growth axis

Original product ratio

Overseas businessratio(sales base)(sales base)(sales base)

To target
composition ratio of

To target of25%

To target of
30%

16.1%

21.0%

65：30：5

New
Manufacturing business& Inspection%
Equipment

200

6.1%

5.5

0

0.0

2017

2018

2019

9M

2020

2021

2022

10M

2023

23.7% Electronic

Equipment &Components

70.8%

15

Evaluation of 10M (ii) Qualitative Evaluation:
Basic Strategic Policies, etc.
[Summary of 10M]
Significantly improved business performance by accurately reading the trend of technological innovation andachieved growth to a level that allows the Company to have its long -term goal of consolidated sales of100-billion yen within its range as a result of driving forward aggressive growth strategies under the slogan"Make a leap forward in the global market as a technology-based company," despite the rapidly changing
circumstances affected by COVID-19 and the international situation[Main Results by Basic Strategic Policy]
Basic Strategic Policy (i)* For KPI ratios, see page 17.

Maximize the merger
synergy!

●New businesses achieved their targets of a 5% market share●Affected by the shortage of semiconductors and electronic components,
manufacturing/inspection equipment did not increase their market shares for delivery
reasons, while the electronic equipment & components related shares were high.
●Both original products and overseas business missed their targets in percentage
but grew significantly in sales.
●Maintained a consolidated gross profit margin of 20%, a target of the Group marked
by a "combined manufacturing and sales policy."

Basic Strategic Policy (iii)
Define focus areas
and markets toaccelerate growth!

●Although our target markets presented patchy appearances affected in part by
Covid-19, we focused on moving markets and firmly grasped the demand for capital
investments and production activities, remained at high levels of both sales andorders.

Promote businessstructure reform!
Basic Strategic Policy (ii)

Basic Strategic Policy (iv)
Increase power
toward sustained
growth!

●One of the particularly great achievements in our overseas location strategies was
a network expansion by establishing new overseas subsidiaries.
●Regarding the development of new businesses,
we advanced the foundations for software-related businesses, in addition
to the growth of the Green Facility Department.
●Also, steady progress was made in reviews of the personnel evaluation system andreforming work styles in order to revitalize the organization.

16

Foundations of 11M Development
1) Management Philosophy

Our Company will aim to provide a comfortable and safe work
environment, respecting our employees' needs for self-esteem andencouraging every individual to achieve their fullest potential.
Our Company will do its utmost to satisfy its customers, shareholders,and suppliers.
Our Company will strive to maintain a global outlook and continue toconquer challenges in technological innovations to provide high valueadded products for our customers.
Our Company is committed to being a good corporate citizen andactively participating in those communities where we are represented.

17

Foundations of 11M Development
2) Group Statement

We will create new value making use of the group network as anengineering trading company leading the electronics industry
External message

Grasp markets from a global viewpoint tocreate and provide values one step ahead ofcustomer needs
Internal message

Always create a next business and seek astage for further growth18

Foundations of 11M Development

3) Overall Picture of Medium- to Long-Term Measures

Started 11M, a new Medium-Term Business Plan, in 2024 as
the 2nd step toward a long-term vision "2030 VISION“
Long-term vision"2030 VISION"
Quantitative Target (2030)

Consolidated net sales ofover 100 billion yen
for further expansion

3 rd STEP

toward 2030 VISION

2 nd STEP

toward 2030 VISION

1st STEP

toward 2030 VISION

10M(3 years)
2021～2023
Previous MediumTerm Business Plan

11M

(3 years)
2024～2026

New Medium-TermBusiness Plan

12M

(4 years)
2027～2030

Qualitative Target(Ideals toward 2030)

A corporate group that isneeded globally for its
technological andproposing capabilities
A corporate group thatco-creates diverse
values with all its
stakeholders throughbusiness activities

19

Foundations of 11M Development
4) Outline of Long-Term Vision
Two ideals toward a long-term vision "2030 VISION" –sustained growth of us and contribution to the realization of a sustainable society(Pursuit of sustainability of us)

A companythat is relied
on for everything from
hardware tosoftware

A companythat can flexibly respondto changes inthe environment(Contribution to sustainability of the society)An excellent
company
with namerecognition

A corporate groupthat is needed
globally for its

A companythat isneeded byotherstechnologicaland proposing
capabilities

A companythat employees canbe proud towork for themost in theindustry

A company
where
seniors canwork actively

A highspirited anddynamic
company

Partnervaluecreation
Human
resourcevalue
creation

A corporate groupthat co-creates

Economic
value
creationdiverse values
with all its
stakeholders

through businessactivities Environ-

Socialvalue
creation* The above five value creation
activities correspond to our fivemateriality initiatives.

mentalvalue
creation

20

Foundations of 11M Development
5) Slogan and Main Reinforcement Points◆Medium- to long-term slogan◆
Make a leap forward in the global market
as a technology-based company

Major policies
in 11Min line withlong-term visionMainreinforcement
points(focus challenges)●A company that grows in the global market as a technology-based company
with net sales of over 100 billion yen●A company that offers affluent lifestyles to society at large through electronics
and electrical technologies●A company that its employees feel happy to work for and proud of●A company that has the strength of solidarity with an organizational culture ofworking autonomously and actively●Continuous reinforcement of domestic business as a basis for stable growth●Further reinforcement of overseas business as the core of our
medium- to long-term growth strategy, particularly the electronic equipment
and components business in overseas markets●Development, cost reduction, and sales enhancement of original products assources of the profitable structure●Strengthening of creation and cultivation of new businesses to nurture
new earnings pillars

21Outline of 11M 1) Performance Target◆Basic ideas (continued from 10M) ◆● Aim at sustained expansion of net sales & operating income
through management focusing on growth potential● Seek gross profit margin of 20% by continuous business structure reform● Expect an annual SGA increase by around 3-5% to promote investments
forming the foundation of sustained growth (in human resources,
technology development, etc.)
Net Sales

Towardsustained
expansionOperating income（ 100mil. yen）

876
723
574

60.5

921
59.4

in net sales &operating income

41.9

having a target of a
100-billion yen
company within range

24.0

2020

2021

2022

10M

2023

2024

2025

2026

11M
22

Outline of 11M 2) Target Management Indices
Set and pursue targets in four management
indices for business profitability,
financial health, and capital efficiency
Business
CapitalFinancial HealthProfitability
Efficiency
Gross profit margin

Equity ratio

ROE
TargetTarget20%

or above

Target50%

12% or above
ROA
Target6% or above
23

Outline of 11M 3) Four Basic Strategic Policies
Promote further step-up with the basic policies in
10M continued in broad outlines
Basic Strategic Policy (i)Promote business structure reform!
Basic Strategic Policy (ii)
Maximize strengths taking advantage of our uniqueness!
Basic Strategic Policy (iii)
Define focus areas and markets to accelerate growth!
Basic Strategic Policy (iv)

Increase power toward sustained growth!
24Outline of 11M 4) Basic Strategic Policy (i)◆Basic Strategic Policy (i)◆Promote business structure reform!
"Stability" of business + New "challenge"

Business
structurereform[ KPI for Stability & Challenge ]Composition ratio by business"Profit" (highly profitable makeup)[ KPI for Profit ] Original product ratio

Continued
profitable
growth"Growth" (increase in trade)[ KPI for Growth ]Overseas business ratio●Pursue four axes of Stability, Challenge, Profit, and Growth toward abusiness structure that enables stable and sustained growth without
being affected by the silicon cycle and other demand and business cycles
in the electronics industry●Aim to achieve targets through continuous progress management by
setting three KPIs (business structure-related indices) to evaluate
the progress in the pursuit of these four axes
25Outline of 11M 4) Basic Strategic Policy (i)Three KPIs for business structure reform
Stability + Challenge
axisProfit axis

Growth axis

Composition ratio bybusiness

Original product ratio

Overseas business ratio（sales base）
2026 Target（sales base）
2026 Target（sales base）
2026 TargetNewbusiness

10%

Manufacturing& Inspection
Equipment

30%

Electronic
Equipment &Components

25%

30%

60%

●Composition ratio
by businessA new target of "Sales composition ratio of 10%" set as a KPI tomeasure the results of new business creation:●Original product ratio

The target is set at 25% continuing from the previous Medium-TermBusiness Plan (10M):

For accelerated efforts in new businesses creation in response to the achievement of
the 5% target set in the previous Medium-Term Business Plan (10M)"Original products" are limited to the our own products and products developed incollaboration with partner companies●Overseas business ratio

Overseas sales calculated as in the past. The target remains 30%.

26

Outline of 11M 4) Basic Strategic Policy (ii)
◆Basic Strategic Policy (ii)◆

Maximize strengths taking
advantage of our uniqueness!

Manufacturing/
Development
D&P Company

Strong partner bases●Customers: Approx. 5,000 companies●Suppliers: Approx. 2,000 companies

Sales/

Marketing

M&S Company

Many partner companies
having business withboth Companies

GlobalOverseas group●We have unique strengths such as possessing both trading and manufacturingfunctions as well as the strong domestic and overseas partner bases●Further enhance its differential advantage in the industry by building the one andonly corporate group combining the manufacturing and sales functions on a global
level and maximizing its strengths based on such uniqueness27

Outline of 11M 4) Basic Strategic Policy (iii)◆Basic Strategic Policy (iii)◆

Define focus areas and markets toaccelerate growth!
Main focus areas and markets●Semiconductor●Automotive●Industrial
equipment(including robots andautomated equipment)●Communication●IoT（including sensor
related）●AI●5G＆6G●Medical●Energy andbattery●Aerospace●Marine●Railroad vehicle
releated●Data center●Computing
relatedThree measures to develop
focus areas and markets
1

Promote business expansion in
focus areas and markets forexisting organizations

2

Promote commercializationand monetization incross-sectional projects

3

Promote business creationand development fromthe stage of a "new business"●Analyze domestic and overseas market trends and business opportunities for us,
and continue to develop and expand proactively and aggressively in the defined focus
areas and markets●Implement strategic initiatives for the above objectives appropriate to the respective
situations of the above three measures28

Outline of 11M 4) Basic Strategic Policy (iii)

1

2

3

Existing

Promote businessexpansion in focus areas
and markets for existingorganizations

PROJECT
Promotecommercialization andmonetization in crosssectional projects (PJs)

New

Promote businesscreation and developmentfrom the stage of a"new business"

Semiconductor related business (power devices, analog devices, semiconductor
manufacturing equipment manufacturers)

Data center related business (UPS systems, secondary batteries, peripheral equipment)
Industrial/Consumer equipment related business (robotics, automation, manpower saving)

Aerospace and defense related business
Automated visual inspection related business (lenses, cars, medical, welding)

Automotive PJ●Focus on EV/CASE fields●Develop
construction/agricultural
machinery manufacturers●Expand overseas business●Develop battery market(production
materials/equipment)

Software PJ●Realize alliances/M&As●Develop software forsensor device field●Develop original software

Medical PJ

IoT PJ●Expand overseas
medical-related sales●Develop medical devices oncontract●Expand D&P medical-related
sales●Promote sales strategies byproduct segment●Examine original productdevelopment based onmarket needs●Enhance solution proposals(collaborate with theInformation System Sales
Dept. and SIers)●Work on the sensor business

ECO/SDGs related

Others●Develop renewable energy
related business●Expand sales ofenvironment-related products(Pacific, India)●Develop the lithium-ion
battery recycling business●R&D acceleration tools(computer simulation, AI)●MI (Materials Informatics)●Manufacturing DX field

29

Outline of 11M 4) Basic Strategic Policy (iv)
◆Basic Strategic Policy (iv)◆

Increase power toward sustained growth!
Increase

marketing power!

manufacturing
power!

Increase thepower of corporate
divisions!

Reinforce
1 domestic business

Reinforce global
3 production
systems

Increase the power
5 of corporate
divisions!

Reinforce
2 overseas business

Enhancetechnology/product4 development andintellectual property
strategies for higher

Promote ESG
6 management

Increase

as a basis for stable
growthas the core of our growthstrategy(sustainability initiatives)

value-added products●Promote reinforcement from the three perspectives of "marketing,""manufacturing," and "corporate divisions," which form indispensable foundations
for sustainable growth based on the main reinforcement points (focus challenges)●Increase our comprehensive power by enforcing the above policies
30

Outline of 11M
5) Specific Strategies for Basic Strategic Policy (iv)
domestic business
1 Reinforce
as a basis for stable growth

Increase marketing power!

●Further deepen relations with focus customers• Continue deployment of "All-Daitron" products(Promote trinity cooperation by D&P Company, M&S Company, and Overseas group)• Expand business with local blue-chip companies by strengthening sales focused on

local areas●Proactively promote new deployment in promising areas• Examine establishing new locations (including satellite
offices) in promising areas[Candidate areas] Hokkaido, Shikoku, Mie, etc.
• Promotion to sales office: Sendai
Hiroshima■Sales office■Sales office + Logistic Center■Satellite office*

MatsumotoKanazawa
Kyoto
Kobe

Sendai
Utsunomiya
Ibaraki
Kunitachi
Tokyo
Yokohama
Shizuoka
NagoyaHashima

Fukuoka

Circled areas are under examination forestablishing new locations in the future

Kumamoto

Osaka

31

Outline of 11M
5) Specific Strategies for Basic Strategic Policy (iv)
domestic business
2 Reinforce
as a basis for stable growth

Increase marketing power!

●Continuously promote expansion focused on the electronic equipment
and components business* Control stable expansion of the manufacturing equipment business, where demand fluctuates significantly(planned launch/acceptance inspection of orders, selection and concentration of customers, risk hedging)●Expand and enhance overseas sales locations• Establish regional manager companies (Greater China
and Indo-Pacific regions)• Expand sales locations by region■Overseas site (including subsidiaries)■Under investigation[North America & Europe]●Establish satellite offices or make
distributorship agreements (at least 3 regions
each)●Establish maintenance offices (North America:
2 regions, Europe: at least 3 regions otherthan the Netherlands)

China (Shanghai)South Korea
Netherlands (Einthoven)
USA (Oregon)(Seoul)USA (Nebraska) [Indo-Pacific]
China (Shenzhen)
India (under investigation)
Taiwan (Taipei)●Establish a representative office in India
Philippines (Manila)
Thailand (Bangkok)[Greater China](2 potential sites under examination)
China
(Hong
Kong)
●Establish and●Examine the establishment of a manufacturing
Vietnam (Hanoi)
expand/enhancelocation (for harnesses, power supplies,
Malaysia (Kuala Lumpur)
satellite offices
and shift to in-house production ofSingapore(Inland China)
outsourced products)
Malaysia (Penang)(Potential site: Vietnam)

32

Outline of 11M
5) Specific Strategies for Basic Strategic Policy (iv)
Reinforce global production
3 system
Increase manufacturing power!
●Enhance domestic and overseas production capacities
Continuously enhance domestic and overseas production systems centered on
the Chubu Factory, the mother plant for our global production system
Domestic

・ Develop new partner companies(harness, assembly and wiring, substrate, sheet metal, painting,software design, mechanical design)
・ Promote alliances and M&As with software companies=> Secure human resources and reinforce technical capabilities

Overseas・ Personnel reinforcement at the Lincoln Factory・ Develop partner companies for the Lincoln Factory

Chubu Factory

Lincoln Factory(Mexico, U.S., Japan)●Continuously promote production cost reduction measures• Formulate and execute permanent person-hour reduction plan for the Lincoln Factory• Establish new production location in the Asian region (Potential site: Vietnam)
33

Outline of 11M
5) Specific Strategies for Basic Strategic Policy (iv)
Enhance technology/product development
4 and intellectual property strategies
for higher value-added products

Increase manufacturing power!

●Continuously enhance systems centered on the engineering
departments of the Chubu Factory●Proactively develop technologies and products• Enhance increase the value added to mass-produced products(with upgraded performance, additional functions, etc.)• Enhance software related technologies that are essential for future higher value-added
technologies/products=> Employ more software engineers and examine alliances with software companies, etc.
• Strengthen customer information collection in Japan and overseas,
and continuously pursue original product development●Enhance intellectual property strategies• Improve the foundations for intellectual property management by defining coretechnologies and taking inventory of technologies held by us.
• Establish a new qualification system based on a medium- to long-term
intellectual property strategies=> Increase employees' motivation by establishing a comprehensive systemlinked to the evaluation system• Expand the number of patents applied for and held over the medium to long term
34

Outline of 11M
5) Specific Strategies for Basic Strategic Policy (iv)
5 Enhance business support function

Increase the power ofcorporate divisions !

●DX (digital transformation)●Human capital management

Increase productivity and operational
quality through DX promotion

Increase the value of human resources
through human capital management(i) Transform business processes/systems(i) Increase labor productivity throughinvestment in training and education

・Start upgrading/replacing systems for estimation, sales,purchasing, production management, accounting,business management, etc.
・Enhance information security(ii) Develop DX promotion infrastructure
・Identify issues using DX promotion indices andtake measures=> Obtain DX certification●Global human resources
Develop global human resources andexchange personnel in and outside Japan・Introduce and institutionalize an overseas locationinternship system
・Continue hiring Vietnamese technical intern trainees at
D&P Company and expand it to other factories

・Develop and invest in training/ education systems toincrease individual skills
・Employ experienced and specialized human resources(ii) Promote diversity and inclusion

・Promote women's empowerment (increase the ratios offemale employees at management-track andmanagement positions)・Promote seniors' empowerment (increase satisfaction)
・Promote hiring persons with disabilities (comply withlegal employment rate)
・Review the personnel systems(develop systems such as
various allowances for experts, seniors, etc.)
・Obtain the Certified Health & Productivity Management
Outstanding Organizations Recognition●PR/IR(i) Establish a department specialized in PR/IR(ii) Increase recognition of the Daitron brand35

Outline of 11M
5) Specific Strategies for Basic Strategic Policy (iv)
ESG management
5 Promote(sustainability initiatives)

Increase the power ofcorporate divisions !

●Contribute to the realization of a sustainable society throughESG management promotion

1. Promote activities of the Sustainability Committee• Establish materiality-related KPIs and take specific actions (promote the Sustainability
Committee's subcommittee activities)• Disclose KPI progress in Integrated Reports

2. Response to the Corporate Governance Code• Examine measures of requiring explanations

3. Strengthen corporate governanceCompliance Committee

Prevent occurrence/spread of scandals in the company

Risk Management Committee Prevent management risks to preserve management resources
Internal Control Committee

Ensure the effectiveness of internal control overfinancial reporting36

Outline of 11M 6) Capital Policy
Pursue the optimal balance between growth investment andshareholder returns while maintaining financial health
Growth investment
Shareholder return[Basic idea]

Aggressively make growth investments
centered on the development of
human resources and expansion ofoverseas locations as the basis for
future growth strategies■Outline of preferred investments in 11M●Examine the first advance into the Indian
market and the establishment of
manufacturing locations in Southeast Asia andnew satellite offices in the U.S. and China●Develop locations for data center related
projects (UPS, storage batteries, etc.)●Increase production capabilities, efficiency,
etc. of factories in Japan●Promote DX (strengthen system replacement& information security measures)●Human capital investment (direct investment+ opportunity investment)[Basic idea]

Raise the consolidated dividend payout
ratio from previous 30% to 40%
as a guideline during the 11M
to strengthen shareholder returns■Changes in dividend per share andpayout ratio
(yen)

115

120
100
80

120

120

100
80

80
60

60

(%)

60

50

40
40
20

30.6

34.4

30.1

30.1

33.2

33.3

2021

2022

2023

2024
forecast

0

20
0

2019

2020

Dividend per share

Dividend payout ratio

37

Conclusion・・・

Toward a technology-based company
The Daitron Group, as atechnology-based company inthe electronics industry,
will work together with all our
stakeholders to co-create
new value for the global market.
38

Attention for use of material
The Company's earnings forecasts stated in this material are preparedbased on the information currently available to us.
In the electronic equipment/parts industry and the manufacturing
equipment industry, which the Company belongs to, technologies
change very rapidly and competition is intense.
In addition, there are various external factors that may affect directly
or indirectly the performance of the Company such as the economic
conditions of Europe, North America and Asian countries.
Please note that, therefore, the Company's earnings may vary fromthe forecast in this material.
<<For inquiry concerning this material and our IR activities>>
IR Team, Business Management Dept.
TEL： +81-6-6399-5952
FAX： +81-6-6399-5962
E-mail： info.ir＠daitron.co.jp

39