Briefing on Results for the Third quarter of theFiscal Year ending March 31, 2021

1

Highlights of Results for the Third quarter of FY2021/3(Consolidated)(million yen）

Third quarter ofFY2020/3

Third quarter ofFY2021/3

Change(YoY)

Rate of change(YoY)

Net Sales

46,256100%

38,988100%△7,268 △15.7%

Operating income

4,449

9.6%

3,431

8.8%

△1,018 △22.9%

Ordinary income

4,537

9.8%

3,669

9.4%

△868 △19.1%

Profit attributableto owners of parent

3,1026.7%

2,496

6.4%

△606 △19.5%

Capital investment970－

1,548－

578

59.5%

Depreciation

850－

806－

△44△5.1%

147.98円－119.74円－

Net income per share

ROE(%)

7.4

Annualized

5.8

Annualized△28.24円 △19.0%－－2

Sales Trends by Product (Consolidated)(million yen）

Third quarter of
FY2020/3

By productNet sales

46,256

100%

Third quarter of
FY2021/3

38,988Change(YoY)

Rate ofChange(YoY)

100% △7,268 △15.7%

31,013 79.5% △6,129 △16.5%

Generators

37,143 80.3%

Welders

3,714

8.0%

3,216

8.2%

△498 △13.4%

Compressors

751

1.6%

5781.5%△172 △22.9%

4,179 10.7%△468 △10.1%

Others4,648 10.1%

3

Engine Generators (Consolidated)(million yen）

Third quarter of
FY2020/3

Generators

37,143

Third quarter of
FY2021/3

31,013Rate of change(YoY)△16.5%• In Japan, shipment to the rental industry decreased, but shipment ofemergency generators increased.
• Overseas, due to the impact of the novel coronavirus infection shipment
mainly to America fell sharply.
Manufacturing engine-driven generators with capacity from 1kVA to 1100kVA
Mobile-type generators
Power source on a construction site and for civil engineering work and disaster recovery/restoration, etc.
Stand-by generating sets (stationary type)Back-up power source such as disaster prevention equipment and offices, etc.
Power-supply vehicles, power light, etc.

65%
Domestic market share ofengine generators (mobile-type)

Soundless generator“Mālie”*According to a Company survey4

Engine Welders (Consolidated)(million yen）

Third quarter of
FY2020/3

3,714

Welders

Third quarter of
FY2021/3

Rate of change(YoY)

3,216△13.4%• In Japan and overseas, shipment of the small-type welding machinesdecreased.
The Company developed the first engine-driven welder for outdoor work in Japan.
Ranging from 135A for welding light-gauge steel to a 500A engine-driven welder
for heavy-gauge steel, a TIG welder and a CO2 welder, etc.
Welding of steel construction for buildings, condominiums and bridges
Welding of important structures such as petroleum storage tanks and pipelines

55%

CO2 welder

Domestic market share ofengine welders*According to a Company survey

5Engine Compressors (Consolidated)(million yen）

Third quarter ofFY2020/3

Compressors

751

Third quarter of
FY2021/3

Rate of change(YoY)578△22.9%• Shipment mainly to Japan decreased.
Manufacturing compressors
with air discharge amounts from 1.6㎥/min to 42.4㎥/min.
 Breaking-up of roads and ground improvement work of roads
 Mortar spraying work for preventing landslides of mountain roads
 For artificial snow machines on ski slopes, etc.

20%

Engine compressor

Domestic market share ofengine compressors*According to a Company survey

6Others (Consolidated)(million yen）

Third quarter of
FY2020/3

Others4,648Third quarter of
FY2021/3

4,179

Rate of change(YoY)△10.1%• Sales of Self-propelled lifters and the purchased merchandise etc.
decreased.
Sales of other products
Self-propelled lifters
PartsSecondhand equipment and purchased
merchandiseRepair sales, etc.

Self-propelled lifter

Load testing equipment

7

Sales Trend by Region (Consolidated)(million yen）

Third quarter of
FY2020/3

Third quarter of
FY2021/3

Change(YoY)

Rate of change(YoY)

46,256100%

38,988100%△7,268△15.7%

Domestic sales

26,85358.1%

26,190

67.2%

△662

△2.5%

Overseas sales

19,40341.9%

12,79732.8%△6,606△34.0%

North/Central
America

13,906

30.0%

8,381

21.5%

△5,525△39.7%

Asia

4,100

8.9%

2,988

7.7%

△1,112△27.1%

Others

1,396

3.0%

1,427

3.7%

31

2.2%

By region

Net sales

Third quarter of FY2020/3

Japan

North/Central
America

Third quarter of FY2021/3

Japan

North/Central
Asia
America

0

5,000

10,00015,00020,00025,00030,00035,000Asia

OthersOthers
40,00045,00050,0008Factor Analysis of Changes in Operating Income（Consolidated）
Decrease in Operatingincome• The operating income decreased mainly due to a decreaseof the net sales.
(million yen）

Third quarter of
FY2020/3

Third quarter of
FY2021/3

Operating income

4,449

3,431

Operating income margin

9.6%

8.8%

Third quarter of
FY2020/3

Third quarter of
FY2021/3

Change(YoY)△1,018△0.8

percentage point

Rate of change(YoY)

Gross profit margin

23.4%

23.8%

0.4

Ratio of SG&A to sales

13.8%

15.0%

1.2

Ratio of operating income tosales

9.6%

8.8%

△0.8•
•

percentage point

percentage point

percentage pointGross profit margin was improved by the increased sales of relatively profitable products, although the net sales fell sharply.
The Ratio of SG&A to sales were worsened by significant decrease of the net sales, although the SG&A expenses
decreased.

910Outlook for FY2021/3 : Consolidated Income and LossKeypoints• Net sales are expected to be 52.0 billion yen.
• Assumed exchange rate is 105 yen/dollar.
(million yen）

Change(YoY)

Rate ofChange(YoY)

52,000 100%

△ 10,887△ 17.3%

4,1007.9%△ 1,957△ 32.3%9.9%

4,4008.5%△ 1,802△ 29.1%6.5%

2,8005.4%△ 1,271△ 31.2%

FY2020/3

FY2021/3(forecast)

Net sales

62,887 100%

Operating income

6,057

9.6%

Ordinary income

6,202
4,071

Profit attributable toowners of parent
Capital investment
Depreciation
Net income per share
ROE
Cash dividends pershare

1,201

2,000

799

66.5%

1,162

1,250

887.6%

194.3yen

134.3yen△ 60.0 yen△ 30.1%

7.4%

*5.0%

46.0yen46.0yen* Equity is calculated by using the amount of money at the end of FY2020/3. 11

Outlook for Sales by Product (Consolidated)

Overview• Sales of generators are expected to decrease by 8,736 million yen (17.3 %).
• Sales of welders are anticipated to decrease by 772 million yen (15.2%).
• Sales of compressors are forecasted to be down by 112 million yen (11.1%).
(million yen）

FY2020/3

By products

Consolidatedsales

62,887

FY2021/3 (forecast)

100%

Generators

50,436 80.2%

Welders

5,072

8.1%

Compressors

1,012

Others52,000Change (YoY)

Rate of change(YoY)

100% △ 10,887 △ 17.3%

41,700 80.2%△ 8,736 △ 17.3%

4,3008.3%△ 772 △ 15.2%

1.6%

9001.7%△ 112 △ 11.1%

6,365 10.1%

5,1009.8%△ 1,265 △ 19.9%
12

Outlook for Sales by Region (Consolidated)(million yen）

FY2020/3

Change (YoY)

Rate of change(YoY)

100% △ 10,887△ 17.3%

FY2021/3 (forecast)

62,887

Domestic sales

37,043 58.9%

34,900 67.1%△ 2,143△ 5.8%

Overseas sales

25,844 41.1%

17,100 32.9%△ 8,744△ 33.8%

North/Central
America

18,430 29.3%

10,800 20.8%△ 7,630△ 41.4%

By region

Consolidatedsales

100%

52,000

Asia

5,197

8.3%

4,2008.1%△ 997△ 19.2%Others

2,216

3.5%

2,100

4.0%

△ 116

△ 5.2%FY2020/3

North/Central
AmericaJapan

FY2021/3(forecast)

North/Central
AmericaJapan010,00020,00030,00040,000Asia

OthersAsia Others
50,00060,00070,00013

Details of the Operating Income Forecast (Consolidated)
Increase in operating
income• Mainly with the decrease of the net sales, operating income isexpected to decrease by 1,957 million yen.
(million yen）

FY2020/3

FY2021/3(forecast)

Change (YoY)

Operating income

6,057

4,100

△ 1,957

Operating income margin

9.6%

7.9%

△ 1.7percentage point

FY2020/3

FY2021/3(forecast)

Change (YoY)

Gross profit margin

23.2%

Ratio of SG&A to sales

13.6%

23.0% △ 0.2percentage point
15.1%
1.5percentage point

Ratio of operating income to sales

9.6%

7.9% △ 1.7percentage point••

The gross profit margin is expected to be only dropped by 0.2 percentage point by the demand for the relatively profitableproducts are expected to be remain robust, although the net sales decrease.
The ratio of SG&A to sales are expected to be worsend by significant decrease of the net sales, although theSG&A expenses decrease.

14Changes in the Amount of Capital Investment (Consolidated)(million yen）

End of March 2018

End of March 2019

End of March 2020

End of March 2021
(plan)

870

1,499

1,201

2,000

Cost ofequipment

Main uses

・Machinery of Fukui plant, etc.
・Nishihatsu
・U.S. Plant
・Vietnam Plant
・Others

310
50
450
2040

・Machinery of Fukui plant, etc.
・Nishihatsu
・U.S. Plant
・Others

Amount of capital investment

million730
5067040

・Machinery of Fukui plant, etc.
・Nishihatsu
・U.S. Plant
・Vietnam Plant
・Others

810
202901070

・Machinery of Fukui plant, etc.
・Nishihatsu
・U.S. Plant
・Vietnam Plant
・Others

1,600
5015080120

Production Sites:

2,500
2,0001,500
・Fukui Plant
・Shiga Sub-Plant
・Nishihatsu

1,000500

・America Plant

・Vietnam Plant

0
End ofMarch2018

End ofMarch2019

End ofMarch
2020

End ofMarch
2021(plan)

・Indonesia Plant

15

Notes on Our Outlook

This material contains assumptions and outlooks for the future andforecasts based on plans as of February 10, 2021.
Actual results may differ materially from projected values due to future
economic changes and competition.
This material is prepared for the purpose of providing information andis not meant to solicit investment in securities issued by the Company.
Investors are responsible for making their own final investment decision.

16