Briefing on Results for the First quarter of theFiscal Year ending March 31, 2024

ContentsⅠ．Overview of Results for
the First quarter of FY2024/3
Ⅱ．Outlook for FY2024/3

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Ⅰ. Overview of Results for theFirst quarter of FY2024/3(April 1, 2023 ~ June 30, 2023)

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Highlights of Results for the First quarter of FY2024/3 (Consolidated)
Key points• Net Sales increased year on year, mainly due to an increase in shipments tothe United States.
• Incomes increased year-on-year, mainly due to a decrease in the expense ratio
due to the increase in Net sales.
(million yen）

Rate ofchange(YoY)

First quarter of
FY2023/3

First quarter of
FY2024/3

12,792

100％

16,836 100％

4,045

31.6％

Operating income

336

2.6％

996 5.9％660

196.0％

Ordinary income

410

3.2％

1,177 7.0％766

186.9％

Profit attributableto owners of parent

260

2.0％

806 4.8％

545

208.9％

Capital investment

27－

210－

183

677.8％

Depreciation

292－

302－

10

3.4％

12.59 yen－

39.07円－

26.48 yen

210.3％Net sales

Net income per share

Change(YoY)

3

Sales Trends by Product (Consolidated)(million yen)First quarter of
FY2023/3

Rate ofchange(YoY)

Change(YoY)

12,792

100％ 16,836

100％

4,045

31.6％

Generators

10,232

80.0％ 14,396

85.5％

4,164

40.7％

Welders

1,159

9.0％

991

5.9％

△ 167

△ 14.4％Compressors

162

1.3％

192

1.1％

29

18.3％

Others

1,238

9.7％

1,256

7.5％

181.5％Net sales

By productFirst quarter of
FY2024/3

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Engine Generators (Consolidated)(million yen)First quarter of
FY2023/3

Generators

10,232First quarter of
FY2024/3

Rate of change(YoY)

14,396• In Japan, shipment of the large-type
generators increased.
• Overseas, shipment to America market
increased.

40.7％

70%

Domestic market share of*According to aengine generators (mobile-type) Company survey

Manufacturing engine-driven generators with capacityfrom 1kVA to 1100kVA

Silent generator“Mālie”

Generator with operational
data recording function⚫Mobile-type generators
Power source on a construction site and for civil engineering workand 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, etc.
5Engine Welders (Consolidated)(million yen)First quarter of
FY2023/3

Welders

First quarter of
FY2024/3

1,158• Shipment to Japan increased, but
shipment to overseas market decreased.

Rate of change(YoY)991△ 14.4％55%
Domestic market share ofengine welders

CO2 welder*According to aCompany survey

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 andpipelines.
6Engine Compressors (Consolidated)(million yen)First quarter of
FY2023/3

First quarter of
FY2024/3

162Compressors• Shipments of engine compressors tooverseas market increased.

Rate of change(YoY)

192

18.3％

15%
Domestic market share ofengine compressors*According to aCompany survey

Manufacturing compressors with air discharge
amounts from 1.7㎥/min to 45.3㎥/min.
⚫ Breaking-up of roads and ground improvement
work of roads⚫ Mortar spraying work for preventing landslides ofmountain roads.
⚫ For artificial snow machines on ski slopes, etc.
Engine compressor

Motor compressor

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Others (Consolidated)(million yen)First quarter of
FY2023/3

Others1,237First quarter of
FY2024/3

1,256

Rate of change(YoY)

1.5％• Sales of parts associated with products increased.

Sales of other products⚫Self-propelled lifters⚫Load testing equipment⚫Parts⚫Secondhand equipment and purchased
merchandise⚫Repair sales, etc.
Self-propelled lifter

Load testingequipment

8

Sales Trends by Region (Consolidated)(million yen)First quarter ofFY2023/3

First quarter ofFY2024/3

Change(YoY)

Rate of change(YoY)

12,791

100%

16,836

100%

4,045

31.6％

Domestic sales

6,581

51.4%

7,243

43.0%

662

10.1%

Overseas sales

6,210

48.6%

9,593

57.0%

3,383

54.5%

North/Central
America

4,149

32.5%

7,118

42.3%

2,968

71.5%

Asia

1,539

12.0%

1,549

9.2%

100.7%

Others

521

4.1%

925

5.5%

403

77.4%

By region

Net salesFirst quarter of FY2023/3

Japan

First quarter of FY2024/3Japan

02,0004,000

North/Central
America

Asia Others

North/Central
America

6,000

Asia Others

8,000 10,000 12,000 14,000 16,000 18,000 (million yen)9Factor Analysis of Changes in Operating Income (Consolidated)
Increase inOperating income•The operating income increased due to the increase inNet sales.
(million yen)First quarter of
FY2023/3

First quarter of
FY2024/3

Operating income

336996660

Operating income margin

2.6%

5.9%

3.3 percentage pointFirst quarter of
FY2023/3

First quarter of
FY2024/3

Gross profit margin

19.6%

19.9%

Ratio of SG&A to sales

17.0%

14.0% △ 3.0 percentage point

Ratio of operating income to sales

2.6%

5.9%

••

Change(YoY)

Rate of change(YoY)

0.3 percentage point
3.3 percentage point

Gross profit margin improved only slightly due to price increases for some major parts.
Ratio of SG＆A to sales decreased due to an increase in sales despite an increase in fixed costs such as personnelexpenses.

10

Ⅱ. Outlook for FY2024/3

11

Outlook for FY2024/3: Consolidated Income and LossKey points• Net sales are expected to be 65 billion yen.
• Assumed exchange rate is 130 yen/dollar.
(million yen)

FY2023/3

FY2024/3 (forecast)

Change (YoY)

Rate ofchange(YoY)

Net sales

64,311

100%

65,000

100%

689

1.1%

Operating income

4,874

7.6%

5,000

7.7%

126

2.6%

Ordinary income
Profit attributable toowners of parent
Capital investment

5,180

8.1%

5,350

8.2%

170

3.3%

3,633

5.7%

3,700

5.7%

67

1.8%

4,213

1,800

Depreciation

1,266

1,300

34

Net income pershare

175.6yen

179.3yen

3.7yen5.7%* 5.6%

50.0yen

51.0yenROE
Cash dividends pershare△ 2,413 △ 57.3%
2.7%* Equity is calculated by using the amount of money at the end of FY2023/3.

12Outlook for Sales by Product (Consolidated)

Overview• In Japan, demand for construction is expected to remain robust, and sales of products
for construction are expected to increase. Stand-by generating sets for disasterprevention equipment generators are also expected to recover.
• Overseas, demand in America and Asia are expected to remain at the high level of theprevious fiscal year.
(million yen)

FY2023/3

FY2024/3 (forecast)

Change (YoY)

Rate of change(YoY)

64,311

100%

65,000

100%

689

1.1%

Generators

53,70083.5%

53,900

82.9%

200

0.4%

Welders

4,401

6.8%

4,700

7.2%

299

6.8%

Compressors

727

1.1%

800

1.2%

73

10.0%

Others

5,482

8.5%

5,600

8.6%

118

2.2%

By products

Consolidatedsales

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

FY2023/3

FY2024/3 (forecast)

Change (YoY)

Rate ofchange(YoY)

64,311

100%

65,000

100%

689

1.1%

Domestic sales

34,24453.2%

34,900

53.7%

656

1.9%

Overseas sales

30,06646.8%

30,10046.3%

340.1%

North/Central
America

21,617

33.6%

21,400

32.9%

△ 217

△ 1.0%

Asia

5,902

9.2%

6,000

9.2%

98

1.7%

Others

2,547

4.0%

2,700

4.2%

153

6.0%

By region

Consolidated
sales

FY2023/3

Japan

North/Central
America

Asia Others

FY2024/3(forecast)

Japan

North/Central
America

Asia Others

0

10,00020,00030,00040,00050,00060,00070,000 (million yen)

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Details of the Operating Income Forecast
Increase in operating
income•Operating income is expected to improve due to higher
sales prices and cost reduction activities.
(million yen)

FY2023/3

FY2024/3(forecast)

Change (YoY)

Operating income

4,874

5,000126

Operating income margin

7.6%

7.7%

0.1 percentage point

FY2023/3

FY2024/3(forecast)

Change (YoY)

Gross profit margin

21.2%

21.9%

0.7 percentage point

Ratio of SG&A to sales

13.6%

14.2%

0.6 percentage point

Ratio of operating income to sales

7.6%

7.7%

0.1 percentage point⚫ The gross profit margin is expected to improve due to the effect of reflection on selling prices and cost
reduction activities, despite price hikes for main parts.
⚫ The ratio of SG&A to sales are expected to be worsen due to increased in labor costs and expenses associatedwith normalization of sales activities.

15

Changes in the Amount of Capital Investment(million yen)

End of March
2021

End of March2022

End of March2023

End of March2024 (plan)

Cost ofequipment

1,918

839

4,213

1,800

Main uses

・Machinery of Fukui plant,
etc.
1450
・Nishihatsu
110
・U.S. Plant
30
・Vietnam Plant
20
・Others
300

・Machinery of Fukui plant,etc.
290
・Nishihatsu
50
・U.S. Plant
20
・Vietnam Plant
20・Others
460

・Machinery of Fukui plant,etc.
360
・Nishihatsu
2500
・U.S. Plant
20
・Vietnam Plant
70
・Others
1,260

・Machinery of Fukui plant,etc.
800
・Nishihatsu
150
・U.S. Plant
200
・Vietnam Plant
200
・Others450

Production Sites:

Amount of capital investment
million yen

4,500
4,000
3,500
3,0002,500
・Fukui Plant
・Shiga Sub-Plant
・Nishihatsu

2,000
1,500
1,000

・America Plant

・Vietnam Plant

500

・Indonesia Plant

0
End ofMarch
2021

End ofMarch2022

End ofMarch2023

End ofMarch2024(plan)

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Notes on Our OutlookThis material contains assumptions and outlooks for the future andforecasts based on plans as of August 9, 2023.
Actual results may differ materially from projected values due tofuture economic changes and competition.
This material is prepared for the purpose of providing informationand is not meant to solicit investment in securities issued by theCompany.
Investors are responsible for making their own final investment
decision.

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