Briefing on Results for the Third quarter of theFiscal Year ending March 31, 2020

1Highlights of Results for the Third quarter of FY2020/3(Consolidated)(million yen）

Third quarter ofFY2019/3

Third quarter ofFY2020/3

Change(YoY)

Rate of change(YoY)

Net Sales

39,982

100%

46,256

100%

6,274

15.7%

Operating income

2,651

6.6%

4,449

9.6%

1,798

67.8%

Ordinary income

2,945

7.4%

4,537

9.8%

1,592

54.1%

Profit attributableto owners of parent

1,947

4.9%

3,102

6.7%

1,155

59.3%

Capital investment

987－970－△17△1.7%

Depreciation

834－

850－

161.9%

91.88円－147.98円－56.10円

61.1%

Net income per share

ROE(%)

4.8 Annualized

7.4 Annualized－－2

Sales Trends by Product (Consolidated)(million yen）

Third quarter of
FY2019/3

Third quarter of
FY2020/3

Change(YoY)

Rate ofChange(YoY)

39,982 100%

46,256 100%

6,274

15.7%

Generators

31,223 78.1%

37,143 80.3%

5,919

19.0%

Welders

3,746

9.4%

3,714

8.0%

△31

△0.9%

Compressors

862

2.2%

751

1.6%

△111 △12.9%

By productNet sales

Others4,150 10.4%

4,648 10.1%

497

12.0%
3

Engine Generators (Consolidated)(million yen）

Third quarter of
FY2019/3

Generators

31,223

Third quarter of
FY2020/3

37,143Rate of change(YoY)

19.0%• In Japan, shipment of generators for handling the blackout increasedmostly.
• Overseas, shipment to America remained strong.
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)*According to a Company survey

Simul Generator

4

Engine Welders (Consolidated)(million yen）

Third quarter of
FY2019/3

Welders

3,746

Third quarter of
FY2020/3

3,714

Rate of change(YoY)△0.9%• Shipment to the domestic market slightly decreased.
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%
Domestic market share ofengine welders

Engine welder*According to a Company survey

5Engine Compressors (Consolidated)(million yen）

Third quarter of
FY2019/3

Compressors

862

Third quarter of
FY2020/3

Rate of change(YoY)△12.9%

751• Shipment to America increased while shipment to the domestic market
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%
Domestic market share ofengine compressors*According to a Company survey

Engine compressor

6Others (Consolidated)(million yen）

Third quarter of
FY2019/3

Others

4,150

Third quarter of
FY2020/3

4,648

Rate of change(YoY)

12.0%• Sales of Self-propelled lifters and Parts sales increased.

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
FY2019/3

Third quarter ofFY2020/3

Change(YoY)

Rate of change(YoY)

39,982

100%

46,256

100%

6,274

15.7%

Domestic sales

24,32260.8%

26,853

58.1%

2,530

10.4%

Overseas sales

15,65939.2%

19,403

41.9%

3,744

23.9%

North/Central
America

10,163

25.4%

13,906

30.0%

3,742

36.8%

Asia

3,883

9.7%

4,100

8.9%

216

5.6%

Others

1,612

4.0%

1,396

3.0% △215△13.4%

By region

Net sales

North/Central
AmericaJapan

Third quarter of FY2019/3

0

5,000

10,00015,000

OthersNorth/CentralAmerica

Japan

Third quarter of FY2020/3

Asia

20,00025,00030,00035,000Asia

40,00045,000

Others
50,0008Factor Analysis of Changes in Operating Income（Consolidated）
Increase in Operatingincome• The Operating income increased because of an increase of
the Net sales and the improvement of the operating income
margin.
(million yen）

Third quarter ofFY2019/3

Third quarter of
FY2020/3

Operating income

2,651

4,449

Operating income margin

6.6%

9.6%

Third quarter ofFY2019/3

Third quarter of
FY2020/3

Change(YoY)

1,798
3.0

percentage point

Rate of change(YoY)

Gross profit margin

22.9%*23.4%

0.5

Ratio of SG&A to sales

16.2%*13.8%△2.4

Ratio of operating income tosales

6.6%

9.6%

3.0

percentage point

percentage point

percentage point* As a result of reviewing the scope of the cost accounting in some overseas subsidiaries, the classification of some expenses has been reorganized fromSG & A expenses to the cost of sales.

••

Gross profit margin is affected by the impact of reviewing the scope of cost accounting in some overseas subsidiaries(△0.6%), and improved by an increase of the sales of the profitable machines.
Ratio of SG&A to sales is improved by the impact of reviewing the scope of cost accounting in some overseas subsidiaries(△0.6%), and also decreased because of the rate of the fixed cost decline which is caused by an increase of the net sales.

910Outlook for FY2020/3 : Consolidated Income and LossKeypoints• Net sales are expected to be 59.5 billion yen.
• Assumed exchange rate is 110 yen/dollar.
(million yen）

FY2019/3

FY2020/3(forecast)

100 59,500 100%

7.1%

8.7%

999

23.8%

5,400

9.1%

808

17.6%

3,166 5.7%

3,600

6.1%

434

13.7%

1,499

1,900

401

26.8%

1,132

1,300

168

14.8%

149.8yen

171.7yen

21.9 yen

5.9%

*6.6%

42.0yen44.0yen55,554

Operating income

4,201 7.6%

5,200

Ordinary income

4,592 8.3%

Profit attributable toowners of parent
Capital investment
Depreciation

ROE
Cash dividends pershare

Rate ofChange(YoY)

3,946

Net sales

Net income per share

Change(YoY)* Equity is calculated by using the amount of money at the end of FY2019/3.

11Outlook for Sales by Product (Consolidated)

Overview• Sales of generators are expected to increase by 4,040 million yen (9.3 %).
• Sales of welders are anticipated to decrease by 115 million yen (2.2%).
• Sales of compressors are anticipated to decline by 59 million yen (5.6%).
(million yen）

FY2019/3

Consolidatedsales

By products

Generators

FY2020/3 (forecast)Change(YoY)

Rate of change(YoY)

55,554 100% 59,500 100%

3,946

7.1%

43,660 78.6% 47,700 80.2%

4,040

9.3%

Welders

5,115

9.2%

5,000

8.4% △ 115 △ 2.2%

Compressors

1,059

1.9%

1,000

1.7%

5,719 10.3%

5,800

9.7%

Others△ 59 △ 5.6%
81

1.4%
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Outlook for Sales by Region (Consolidated)(million yen）

FY2019/3

Change (YoY)

Rate of change
(YoY)

100%

3,946

7.1%

FY2020/3 (forecast)

55,554

Domestic sales

33,693 60.6%

35,500 59.7%

1,807

5.4%

Overseas sales

21,860 39.3%

24,000 40.3%

2,1409.8%

North/Central
America

14,080 25.3%

17,100 28.7%

3,020

21.4%

By region

Consolidated
sales

100%

59,500

Asia

5,527

9.9%

5,1008.6%△ 427 △ 7.7%

Others

2,252

4.1%

1,800

3.0%

△ 452 △20.0%

FY2019/3

Japan

FY2020/3(forecast)

Japan
0

10,00020,000

North/Central
America

Asia

North/Central
America
30,00040,00050,000

OthersAsia

Others60,00070,00013Details of the Operating Income Forecast (Consolidated)
Increase in operatingincome• With the implement of the medium-term management plan,operating income is aimed to increase.
(million yen）

FY2019/3

FY2020/3(forecast)

Change (YoY)

Operating income

4,201

5,200999

Operating income margin

7.6%

8.7%

1.1percentage point

FY2019/3

FY2020/3(forecast)

Change (YoY)

Gross profit margin

22.3%

22.9%

0.6ercentage point

Ratio of SG&A to sales

14.8%

14.1% △0.7percentage point

Ratio of operating income to sales

7.6%

8.7%

••

1.1percentage point

The gross profit margin is aimed to be improved by enhancement of the sales in the profitable product and the cost reduction
activities.
The ratio of SG&A to sales are expected to be improved because of the rate of the fixed cost such as personnel expenses
decline which is caused by an increase of the net sales.

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

End of March 2017

End of March 2018

End of March 2019

End of March 2020
(plan)

511

870

1,499

1,900

Cost ofequipment

Main uses

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

1005025020・Machinery of Fukui plant, etc.
・Nishihatsu
・U.S. Plant
・Vietnam Plant
・Others

Amount of capital investment

million

310
50450
2040

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

730
50670
40

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

1,500
40260
4060

Production Sites:

2,000
1,500
1,000
・Fukui Plant
・Shiga Sub-Plant
・Nishihatsu

500

・America Plant

・Vietnam Plant

0
End ofMarch2017

End ofMarch2018

End ofMarch2019

End ofMarch
2020(plan)

・Indonesia Plant

15

Notes on Our Outlook

This material contains assumptions and outlooks for the future andforecasts based on plans as of February 13, 2020.
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.

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