Contents

Philosophy

OutlineSustainability Strategies to Support Value Creation

01 Philosophy

47 A Message from the CSuO

02 Contents / Editorial Policy / Tool Map

49 Sustainability

03 Our History of Value Creation

50 Respect for Human Rights

05 About DJK

51 Human Resources

07 Value Creation Process

55 Environment

09 Global Network

59 Roundtable Discussion between Outside Directors

11 Financial and Non-financial Highlights

61 Directors and Audit & Supervisory Board Members
63 Corporate Governance
70 Risk Management

Value Creation Strategies

MissionConnecting People, Connecting Technology
and Enriching the World.

13 A Message from the President & CEO

Data Section

19 A Message from the CFO
21 Materialities

73 Consolidated 11-Year Financial Summary

23 Growth Strategy / Medium-term Business Plan

75 Group Companies

25 Medium-term Business Plan: Strategic Business76 Corporate Data / Investor Information

Investment
27 Business Segments at a Glance

Vision29 Strategy by Business Segment

Next-generation engineering trading firm
Striving to be a business partner that is one step ahead of the times,
and that contributes to the growth of customer businesses and therealization of a sustainable society on a global scale by continuously
providing value with our company’s engineering function as its core.

29 Plant & Energy Business
31 Energy Solutions Business33 Industrial Machinery Business
35 Electronics Business
37 Automotive Business
39 Healthcare Business
41 Aviation & Social Infrastructure Business
43 Overview by Region
45 Special Feature: Transforming into the Nextgeneration Engineering Trading Firm

Value

Editorial Policy

TRUST

GROWTHCONTRIBUTION

We strive to be a company that is rewarding,respects individuals, andallows them to experience growth, while
cooperating with internal and external parties
to align our goals withthe expectations of our
stakeholders and oursocial responsibilities.

We aim to achieve continuous growth throughaggressive investment ingrowth markets andexpansion of businessdomains, while contributing to manufacturing
through our uniqueengineering capabilities.

We contribute to therealization of a sustainable society by actively
tackling important social
issues through management transparency andcontinuous improvementof the quality of thecompany.

The DJK Report is created to provide stakeholders with a deeper
understanding of the DJK Group’s medium- and long-term value
creation. The 2023 edition of the report presents a detailed
explanation of our approach to human resources, a crucial formof capital for the Group, and our initiatives aimed at being thenext-generation engineering trading firm described in our Vision.
We hope that this report assists all our stakeholders to gain abetter understanding of DJK.
Reference Guidelines
International Integrated Reporting Council’s (IIRC) “International
Integrated Reporting Framework,” Ministry of Economy, Trade andIndustry’s “Guidance for Integrated Corporate Disclosure andCompany-Investor Dialogues for Collaborative Value Creation,” etc.
Applicable Period
April 1, 2022 to March 31, 2023 (including some information not covered)

Tool Map
Financial Information

Non-financial Information

Integrated Report (DJK Report)
Securities Report /Quarterly Securities Report

Corporate Governance
ReportConsolidated Financial Results
Newsletter to Shareholders
Financial Results
Briefing Materials

Sustainability Website

Corporate Profile

Applicable Organizations
DAIICHI JITSUGYO CO., LTD. and Japanese and Overseas Group Companies

WebsiteDisclaimer regarding forward-looking statements
Statements made in this annual report with respect to DJK’s forecasts and business targets that are not historical facts, are forward-looking
statements about the future performance of DJK and its consolidated subsidiaries and are based on information currently available. Readers are
cautioned that for a variety of reasons actual results could differ significantly from the projections presented in this report.

01

DAIICHI JITSUGYO CO., LTD.

DJK Report 2023

02

Outline

Value Creation Strategies

Sustainability Strategies to Support Value Creation

Data Section

Our History of Value Creation

Evolving Industrial Machinery SupplierFounded in the midst of a postwar reconstruction, we have steadily continued our nonspeculative business of buying and selling machinery, and have achieved growth while
earning trust as a sound company. Supporting core industries in Japan has become thefoundation of our business as a supplier of industrial machinery, and in recent years, ourbusiness domain has expanded to diverse industries. The role we should play in the
future goes beyond the framework of a trading company that only sells products. We
continue to evolve toward becoming the next-generation engineering trading firm that
embodies the concept of a products and integrated solutions business model.

1982

1989

2006

Entry into theelectronics industry

Entry into theaviation industry

Entry into therechargeable battery field

1979

1952

1964

Pioneering the petroleum
and petroleum refining
industry and paper
manufacturing industry

Entry into theautomotive industry

Entry into thepharmaceuticals industry

1959

Entry into theplastics industry

Net sales

1948 1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

Plant & Energy

Industrial Machinery

Automotive

Healthcare

Electronics

Aviation & Social Infrastructure

Energy Solutions

1952

1959

1964

1979

1982

1989

2006

China

1962: Representative office in Taipei, Taiwan
Americas

1968: Representative

office in New York

Asia

2020

(Year)

Expansion ofbusiness domains

1997: Established SHANGHAI YISHI TRADING CO., LTD.
1972: Established local subsidiary(DJA) *New York

2005: Established DAIICHI JITSUGYO ASIA PTE. LTD.

1971: Representative office in Singapore
EuropeEstablishment (1948)–

2015

1970–

(DJKA)

1983: Representative office in London (closed in 2009)1990–

Expansion ofbusiness areas

2008: Established DJK EUROPE GMBH

2010–

Engaged in core industries to build ourbusiness foundation

Establishing a service system andaccelerating industry expansion

Expanding new business models to meetcustomer needs

Expanding domains on the strength ofengineering functions

Established in August 1948 as a trading company specializing inmachinery. Starting with core industries such as shipbuilding, cement,
and oil refining, we steadily built up relationships of trust withbusiness partners and banks to solidify our business foundation. In
the early 1950s, the Company began trading overseas, and in thelatter half of the decade, it entered the plastics industry by beginningto deal in molding and processing machines. By adding a productoriented approach to our customer-oriented sales approach toexpand sales of superior products, we have laid the foundation forsales channels to a wide range of industries. In 1962, we established
the Company’s first overseas representative office in Taipei, Taiwan,
with the cooperation of the local companies with which we traded.
We engaged in the sale of machinery to food factories, which were at
the height of their prosperity at the time.

We expanded our product lineup along with the increase in equipment
demand due to rapid economic growth. In 1970, the Company
established a subsidiary, Daiichi Machinery Service Co., Ltd. (currently
Daiichi Mecha-tech Corporation), to handle everything from equipment
installation to after-sales service. At the same time, the Company began
handling tablet visual inspection machines, printed circuit board
assembly systems, and ground support equipment for airports,
successfully entering the pharmaceutical industry, the electronics
industry, and the aviation industry. Business expanded with the openingof the D.S.T. Center, which provides technical services and training. In
1972, the Company established a local subsidiary in the United States,
mainly engaged in the export of oil drilling equipment. Sales grewthanks to the oil drilling boom in Japan at the time. The focus later
shifted to expanding the sales of Japanese products such as industrial
robots and molding machines.

Since the mid-1990s, the Company has been establishing overseas
bases and local subsidiaries to strengthen its support system for theoverseas expansion of Japanese manufacturers, including those in thehome appliances and digital equipment industries. The first step was
our expansion into Shanghai, China, which was to become a massive
market, in 1997. In 2005, we expanded into Southeast Asia with theestablishment of a local subsidiary in Singapore, and in 2008, wedeveloped our business in Europe with the establishment of a local
subsidiary in Germany. We have steadily captured needs for totalsolutions, establishing a new business model that provides not only
equipment installation but also the process from local factory start-up
to production support. In the late 2000s, the Company entered thenext-generation energy field, which led to solar cells and lithium-ion
batteries. This served as a foothold for the expansion into new
business domains.

The Company began full-fledged efforts in the renewable energy field,
including the construction of its own solar power plants in the early2010s. In addition, our business domains continue to expand more
broadly, with an increase in large-scale projects involving engineering
due to the growing size, complexity, and sophistication of capital
investment projects by manufacturing companies. In each of ourbusinesses, we are expanding our products and integrated solutions
business model, while accelerating our efforts to realize a sustainable
society. We boast 37 overseas bases in 17 countries as of September
30, 2023, and we aim to expand our business relationships, not onlywith Japanese companies but also with foreign companies.

03

DAIICHI JITSUGYO CO., LTD.

DJK Report 2023

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Outline

Value Creation Strategies

Sustainability Strategies to Support Value Creation

Data Section

About DJKDJK Keywords
Many Years of Experience
as an Industrial
Machinery Supplier
SINCE
1948

75

Foundation

Consolidated net sales

years

6,717

¥

million

53.6(As of September 30, 2023)

37

Number of overseas
employees

1,319 412

Long-term issuer rating(As of September 13, 2023)(Japan Credit Rating
Agency, Ltd. (JCR))(Non-consolidated: 591)

A–

(Stable)Seven Businesses That Meet
Diverse Needs
Aviation & Social
Infrastructure Business

Plant & Energy Business

1.6%

11.2%

Healthcare BusinessNet sales
composition

Automotive Businessby segment(FY2022)

Energy Solutions Business

DAIICHI JITSUGYO CO., LTD.

Supporting
manufacturing as a
general machinerytrading company

Proposing totalsolutions that
capture customerneeds

We make full use of our global network to
uncover valuable products from markets aroundthe world and present flexible proposals. From
general-purpose machinery to custom-madeproducts tailored to meet customer needs, weoffer an extensive range of industrial machineryand equipment for manufacturing.

We contribute to solving customer issues such as
productivity improvement, environmental support,
and cost reduction by providing high-value-added
technological solutions. In addition to our
extensive manufacturing know-how and cuttingedge information, we use optimal services(integrated solutions) to achieve better
production sites for our customers.

Enhance added value through our products andintegrated solutions business model

Unique Engineering
Functions12.0%

Total Coordination

Industrial Machinery Business

15.5%

Establishment

Project

Response toElectronics Businessof new plants

management

diverse needs

31.6%
05

Products%

See p.43 for details

Consolidated:

20.5%

Integrated
Solutions(Based on delivery destination)in 17 countries

7.4%

The Company offers total support to customers engaged in manufacturing, from the coordination of multiple
pieces of equipment to after-sales follow-up after installation, in order to provide proposals that lead tosolutions to problems at production sites. In order to provide optimal solutions, we not only sell equipment(products), but also expand our business to include services (solutions), such as technical support for
product manufacturing and engineering that requires expertise, in order to increase added value.

million

Proportion of net sales
from overseas

Number of Overseas Bases(As of March 31, 2023)

153,674¥

Consolidated operating income

Extensive
Network

Number of employees

Sustainable Growthand Trust

Products and Integrated Solutions
Business Model

DJK Report 2023

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Outline

Value Creation Strategies

Sustainability Strategies to Support Value Creation

Data Section

Value Creation Process
The Group has identified materialities to solve social issues and is developing its operations aroundseven businesses based on a growth strategy as a supplier of industrial machinery in Japan andoverseas, leveraging the business foundation it has developed over its more than 70-year history.
Our goal is to“Connect People, Connect Technology and Enrich the World”by creating environmental
and social value through the provision of proposals that make use of advanced technology and services
to meet diversifying needs.

InputsBusiness activities

Outputs

Outcomes

Companywide Management Targets
Human and intellectual capital

VisionNumber of employees (consolidated)
1,319
Number of overseas employees 412
Technical specialists
440

Next-generationengineering trading firmSocial and relationship capital

Establish engineeringfunctions

Extensive
See pp.9-10 for details
networkEngineering organizations
Manufacturing and service subsidiaries

Net sales¥185.0 billion¥8.5 billion

Ordinary income¥8.7 billion

Stable financial baseTotal assets¥152.5 billion
Shareholders’ equity¥63.6 billion
Shareholders’ equity ratio
41.6%

Seven segments

ＲＯＥ

Materialities

Medium-term businessplan MT2024
Business strategies
for growthNon-financial Targets

07

Changes in supply chain

DAIICHI JITSUGYO CO., LTD.

Respect for human rights

Aging infrastructure

Compliance

Realization of a resource-recycling society
Protection of the natural environment

Society
Utilization of advanced IT/AI
Promotion of smart factories
Providing safe & secure products
enhancement

FY2020)⇒ Equivalent to the ratio of female employees
in the Group career track positions
Foreign employees: currently 30.0%⇒ Equivalent to the ratio of foreign employees

Providing well-being and high quality
products development
Healthy work environment
Sustainable ability development
Talent management

Governance
Strengthening internal controls andMid-career recruits: 36.6%

governance⇒ Equivalent to the ratio of mid-career recruits

Risk managementin the Group

Changes in international affairs

Realization of a decarbonized society

Improved safety with social infrastructure

Female employees: currently 2.1%

Corporate governance

Environment

by FY2030 (compared to 1,617.37 t-CO2 inin the Group

Improvement of quality
management

Value to Society

46% reduction in greenhouse gas emissions

Targets for core human resources by FY2031

Strengthening
management basePromotion of diversified
human resources

Environmental issues

10%

Net zero by FY2050

Contribution to healthy,safe and secure lives

Spread of infection¥12.5 billion

10%

See pp.29-42 for details

Contribution toa sustainable earth

Climate change

ＲＯＥ

See p.23 for details

Contribution to sustainable
development of industries

External
Environment¥300.0 billion

Operating income¥5.8 billion(As of March 31, 2023)

Connecting People, Connecting
Technology and Enriching the World.

Net sales

Profit attributable toowners of parent

Financial capital

GROWTHCONTRIBUTION

Products and integrated
solutions

V2030
growth strategy¥200.0 billion

Operating income

Organizational capital

TRUSTMission

Orders received

Customers
Approx. 3,900
Suppliers
Approx. 4,700
Trust gained over many years
Strong partnership

Value

Quantitative targets
under medium-termbusiness plan MT2024

Social contribution and harmony

Natural disasters

Changes in industrial structure

Information and cyber securities

DJK Report 2023

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Outline

Value Creation Strategies

Sustainability Strategies to Support Value Creation

Data Section

Global Network
We are pursuing our global strategy through our global four-region network. In July 2023, we opened
two bases in the United States (the Kentucky Office and the Austin Office). We have established a sales
structure that enables us to provide comprehensive support for companies engaged in businessoverseas and respond swiftly to all our customers’local needs through our network of 37 overseas
bases (as of September 30, 2023).

Number ofOverseas Bases37

p.75: Group Companies, p.76: Corporate Data

9

China

4

Europe

Japan

Bases

7 Bases in JapanThe DJK Group
Head Office

Bases

Sales & service bases● Europe● Asia● China● Americas

14

Asia

Osaka, Nagoya, Sendai, Hiroshima,
Fukuoka, Toyama
Technical center

Kawaguchi

Bases

10

Americas

Bases★Technical center

Europe

Asia

China

Americas

Regional headquarters

Regional headquarters

Regional headquarters

Regional headquarters

DJK EUROPE GMBHDAIICHI JITSUGYO ASIA PTE. LTD.

SHANGHAI YISHI TRADING CO., LTD.

DAIICHI JITSUGYO (AMERICA), INC.

Frankfurt, Prague, Budapest, Sofia

Singapore, Kuala Lumpur, Johor Bahru, Penang, Bangkok,

Shanghai, Tianjin, Suzhou, Wuhan, Guangzhou,

Chicago, Houston, Knoxville, Ohio, Kentucky, Austin,

Jakarta, Hanoi, Ho Chi Minh City, Manila, Laguna,Shenzhen, Nansha, Hong Kong, Taipei

Queretaro, Monterrey, Leon, Sao PauloNew Delhi, Bangalore, Ahmedabad, Seoul
Technical center

Bangkok, Hanoi, Laguna,
New Delhi, Seoul
See pp.43-44 for details

09

DAIICHI JITSUGYO CO., LTD.

DJK Report 2023

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Outline

Value Creation Strategies

Sustainability Strategies to Support Value Creation

Data Section

Financial and Non-financial Highlights
Consolidated Financial Highlights
Orders received / Net sales / Operating income

Total assets (Millions of yen) / ROA*1 (%)

Net assets (Millions of yen) / Shareholders’ equity ratio (%)

Net assets per share / Earnings per share (yen)(Millions of yen)244,296

6,013.9

152,535
132,235

183,288

161,987
152,328
161,891
161,476

154,702140,029

7,573

2019

112,561

6,998

148,075

2021

2023

2022

4.4

4.1

4.4

4.3

4.1

Year ended March 31■ ■ Orders received ■ ■ Net sales ■ ■ Operating income

Profit attributable to owners of parent (Millions of yen) /ROE*2 (%)
6,316

2019

2020

2021

2023

2022

4,457

■ ■ Total assets

2019

2020

44.3

2021

Interest-bearing debt (Millions of yen) / DER*3 (times)

Shareholders’ equity ratio

Cash flows (Millions of yen)

2021

7,802

7,850

7,805

7,631

0.17

10.3

9.6

0.16

2020

2021

2019

2020

2021

2022

Earnings per share

32,30923,137178.0

11,141

145.0

2023

130.0

2019

△1,742△3,426

2020

30.1

28.9

660

△409
△910
△1,625 △1,545 △1,535

29.2

28.5

26.3

2021

2022

△4,569

2023

2019

2020

2021

2023

2022

Year ended March 31■ ■ Cash flows from operating activities

DER

130.0

8,940

Year ended March 31■ ■ Interest-bearing debt

ROE

2023

2022

Year ended March 31

5,006

0.13

2023

2019

110.0

6,072

0.15

Year ended March 31■ ■ Profit attributable to owners of parent

444.7

26,782
20,867

2022

501.0

456.4

Dividends per share (yen) / Dividend payout ratio (%)
31,267△924△1,902

2020

418.3

Net assets per share

0.09

2019

2023

2022

5,882

9.3

41.6

591.9

4,521.3

Year ended March 31■ ■ Net assets

ROA

4,754

10.4

10.1

44.8

43.4

40.5

5,023.7
4,274.5

48,446

Year ended March 31

5,363
4,876

45,7105,470.9

6,717

6,866

5,729

2020

153,674

111,486

58,722

53,845

119,958

63,658Year ended March 31■ ■ Dividends per share

Dividend payout ratio■ ■ Cash flows from investing activities*1 ROA (Return On Assets) *2 ROE (Return On Equity) *3 DER (Debt to Equity Ratio)■ ■ Cash flows from financing activities
Cash and equivalents, end of period

Non-financial Highlights
Number of employees (consolidated) /Number of overseas employees (persons)

1,167

1,209

1,229

1,258

Number of graduate recruits /Number of mid-career recruits (persons) (non-consolidated)

Number of technical specialists (consolidated),
including number of overseas employees (persons)

1,319
55

369

193
374

417

397

399

412

23

22

73

20

204

199

206

22

22

2020

2021

2022

2023
Year ended March 31■ ■ Number of employees (consolidated)■ ■ Number of overseas employees

11

DAIICHI JITSUGYO CO., LTD.

2019

2020

2021

2022

46

45

207

8.5

44
13.6

5.9

13

2019

86

43

38
25

440

408

396

387

Education and training expenses*4 (¥1,000/person) /Education and training hours*4 (hours/person) (non-consolidated)

2023

Year ended March 31■ ■ Number of graduate recruits ■ ■ Number of mid-career recruits

2019

2020

2021

2022

2023
Year ended March 31■ ■ Number of technical specialists (consolidated)■ ■ Number of overseas employees

2019

5.4

2020

■ ■ Education and training expenses

2021

2022

9.3

2023

Year ended March 31
Education and training hours*4 Education and training expenses and education and training hours are limited tothose organized by the Personnel Department, but other education and training
programs are also provided by each organization.

DJK Report 2023

12