Securities code 6637

TERASAKI REPORT
1 April 2019 – 31 March 2020

Financial Highlights
Net sales

O pe ratin g profit

36,700 million JPY

2,411million JPY

Up 3.9% from the same term last year

Up 79.6% from the same term last year

Recurri ng pr ofi t

Profit attributable to owners of the company

2,832 million JPY

2,035 million JPY

Up 47.2% from the same term last year

Up 55.6% from the same term last year

Basic Policy on the Distribution of Profits
Dividends/Payout ratio
12.7

13.9

10.6

Dividends per share（JPY）
Payout ratio（%）

10.2

Each year, Terasaki Electric Co., Ltd determines
how it will distribute the profits toshareholders, after taking into consideration
the Company’s business performance, financial
situation, and business environment. Our aims

14141416

are to provide stable and continuous dividends,
further consolidate our financial base, andretain adequate internal reserves that will allow
us to pursue further future developments of our2016
FY

2017
FY

2018
FY

2019
FYbusiness.

President's Message
Capital investment in Japan has increased in various industries
as companies move to streamline and save labor costs, as well as
to cope with the trend towards digitalization in non-manufacturingsectors. This has improved the economic environment of theTerasaki Group in Japan. On the other hand, capital investment
overseas has on the whole remained weak. The shipbuilding
industry, being one of our major markets, has faced tough times.
Orders for new equipment and systems increased, to cope withregulations intended to protect the marine environment(strengthened in January 2020), but the demand for orders for
new ships has been weak, due to the ongoing international trade
friction and other factors. In addition, the extensive spread of thenovel Coronavirus (Covid-19) around the world is having a severe
impact on the world’s economy. At Terasaki Group, the operationof our consolidated subsidiaries was suspended temporarily due
to lockdowns imposed, causing some delays in the closing offinancial accounts and auditing, which impacted the Terasaki
Group. We sincerely apologize for any inconvenience caused toour shareholders due to the delay.
Terasaki Group's earnings ending March 2020 showed anincrease in sales of marine system products in China, and for theequipment and systems used especially to fulfill the new marine
environmental conservation regulations. Meanwhile, there was a
decline in the sales for Terasaki Shore Connection, and theequipment and systems for LNG ships in Marine Systems, and also
for products in Circuit Breakers. However, the overall outcome
was with an overall sales increase as compared with the same
term last year, and an increase in the profits that are attributed toour incessant efforts to reduce costs and expenses. The Covid-19
pandemic had caused only slight effects on our consolidated
performance ending March 2020.
This year, in 2020, we are executing a full scale launch of a newseries of circuit breaker products. The new series will focus more
sharply on environmental conservation as compared to ourstandard product line, meets specific customer needs by featuring
substantial enhancement of measurement accuracy andcommunication functions. They will also consume even lessPresident

Taizo Terasaki
energy. In addition, we are planning to continue to devote
concerted efforts in getting orders for the marine environmental
conservation regulations in Marine Systems and Engineering &Lifecycle Services. In Industrial Systems, we are embarking toenhance our sales activities in railway-related markets and therecyclable energy sectors, both in Japan and abroad. In MedicalDevices, we are also planning to focus our efforts on thedevelopment of new products that meet the needs of the medical
services industry.
In consideration for Health and Safety, our Terasaki Group shallmake every effort in taking precautions to prevent any spread ofCovid-19 and averting any risks that this infectious disease may
pose to our business activities, putting top priority on the health of
our group's employees, customers and suppliers.
We will strengthen global cooperation under our“TEAMTERASAKI”spirit and in responding swiftly and effectively to ourcustomers' needs, with the quest for full customers’satisfaction.
We are committed to making perpetual efforts to promote thebusinesses of our five divisions.
We humbly and sincerely request our shareholders andpartners for the continued support as we pursue these challenges.
July 2020

Industrial Systems

Marine Systems

Pursuing business challenges as a leadinginternational manufacturer of electrical power
distribution systems for marine applications

Medical Devices

Demonstrating originality in industrial
markets with our electrical power
distribution systems

Circuit Breakers

Reigning as the most trusted circuit
breakers manufacturer in the world

TERASAKI in constantpursuit of innovativeelectrical power
distribution and control
Engineering & Lifecycle Services
systems

Contributing to human health andsecurity as a manufacturer of medicaldevices

Offering solutions to worldwide customers
through the engineering and lifecycle businessSegment Performance by Region and ProductJapanNet sales percentageNet sales

0.6% from the23,140 million JPY （Upsame term last year）

Segment profit

60.8% from the
2,089 million JPY （Upsame term last year）▶︎Marine Systems▶Engineering & Lifecycle Services

Sales volume increased for products related tomeeting the regulations to promote marine
environmental conservation and products supplied
for container ships, although the sales volume for
Terasaki Shore Connection and products for LNG
ships had declined.

63.0％

Sales volume remained firm for projects
related to meeting the regulations topromote marine environmental conservationand in business for engineering services inindustrial systems.

▶Circuit Breakers▶︎Industrial Systems

Japan:
Sales result was weak.
Overseas: S a l e s v o l u m e i n c r e a s e d f o r
products in the marine markets
and those destined for theOceania markets.

Sales volume had decreased for projects
involving domestic and overseas plants.

▶Medical Devices

Sales volume remained firm for both medical
tools and equipment and clinical testing
devices.

Asia
Net sales percentage

Net sales
Segment profit

16.7% from the9,570 million JPY （Upsame term last year）
30.7% from the925 million JPY （Upsame term last year）▶︎Marine Systems

26.1％

Sales volume increased for products for bulk carriers and container ships.

▶Engineering & Lifecycle Services

Sales volume remained firm for Terasaki Shore Connection and for projects related to meeting
the regulations to promote marine environmental conservation such as SOx emissions.

▶Circuit Breakers

Sales volume of OEM-based products increased, but declined for products distributed to theMalaysian market, due to the effects of the change in the government and other factors.

EuropeNet sales percentage

Net sales
Segment profit

10.9％▶Circuit Breakers

2.9% from the
3,989 million JPY （Downsame term last year）
8.1% from the238 million JPY （Upsame term last year）

Sales volume levelled off in the UK but those in Middle Eastern countries were stronger. Sales
volume in Europe had declined slightly. Consequently, the overall sales volume of circuit
breakers had declined due to the effects of fluctuations in the foreign exchange rate.

▶Engineering & Lifecycle Services

The business for retrofitting remained firm.

By Product Group
System Products

Circuit Breaker ProductsNet sales

Net sales

20,722 million JPY（Up 8.9% from the same term last year）

Orders received

15,978 million JPY（Down 1.8% from the same term last year）

19,830 million JPY（Down 0.8% from the same term last year）

16,247

Order backlog
million JPY（Down 892 million JPY from the end of thelast consolidated fiscal year）（Note）We do not disclose orders received or orderbacklog for Circuit breaker products because
they are manufactured in accordance with
our planned production schedule.

SystemProducts

56.5%

CircuitBreakerProducts43.5%

Net sales
percentage by
product groupConsolidated Financial Highlights
Net sales

Operating profit/Operating profit ratio（Units: Million JPY）

40,00036,880（Units: Million JPY）

2,500

36,70035,311

2,000

30,0001,500

20,000Operating proﬁt ratio

2,411

2,235

（Units: %）

108

6.6

6.1

6

1,342
3.8

1,000

10,0004250002017
FY

Recurring profit（Units: Million JPY）

2,264
2,000

2018
FY02019
FY2017
FY300

2,500

2,035

2,000

1,923

1,500

1,000

1,441
110.671,307

156.20100.362019
FY067.167.12018
FY2019FY63.32001501005002018
FY（Units: %）25002019
FY

Equity ratio

Proﬁt attributable to owners of the company
Proﬁt per share(Units: JPY)

（Units: Million JPY）

1,000

2017
FY2018FY

Profit attributable to owners ofthe company /Profit per share

2,832

3,000

0

Operating proﬁt

50

2017
FY2018FY2019FY02017
FY

Consolidated Financial Statements
Consolidated Balance Sheets
2018FY（As of 31 March 2019）（Units: Million JPY）
（As of 31 March 2020）［Assets］
Current assets

32,57033,342

Non-current assets

12,17913,425

Property, plant and equipment

8,937

9,389

165

129

Investments and other assets

3,076

3,907

Total Assets

44,74946,767

Intangible assets

Consolidated Statements of Income （Units: Million JPY）
2018FYNet sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Non-operating expenses
Recurring profit
Extraordinary income
Extraordinary loss
Profit before income taxes
Income taxes - Current
Income taxes - Deferred
Profit for the period
Loss attributable to non-controlling interests
Profit attributable to owners of the company

1 April 2018
（Fromto 31 March 2019）35,31125,733
9,578
8,235
1,342
625
44
1,923
208
02,131
512
313
1,305
△11,307（Note）Monetary amounts are rounded off to one million JPY.

（Units: Million JPY）

2019FY

2019FY

2018FY［Liabilities］
Current liabilities
Non-current liabilities
Total Liabilities［Equity］
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost
Accumulated other comprehensive income
Non-controlling interests
Total Equity
Total Liabilities and Equity

2019FY（As of 31 March 2020）

12,546
2,131
14,678

11,763
3,565
15,32829,427
1,2362,244
25,947△1607
37
30,07144,74931,2791,236
2,244
27,799△1124
34
31,43946,767

Consolidated Statements of Cash Flows （Units: Million JPY）
2018FY

1 April 2019
（Fromto 31 March 2020）

36,70026,45910,241
7,829
2,411
553
131
2,832
80
117
2,795
689
71
2,034
△12,035（As of 31 March 2019）

1 April 2018
（Fromto 31 March 2019）

2019FY

1 April 2019
（Fromto 31 March 2020）

Cash flows from operating activities

1,112

2,047

Cash flows from investing activities△437△929

Cash flows from financing activities△1,018△839

Effect of exchange rate changes
on cash and cash equivalents△56△474

Net increase（decrease）in
cash and cash equivalents

△400

△195

Cash and cash equivalents
at beginning of year

11,76811,368Cash and cash equivalents
at end of year

11,368

11,172

Topics– A new type of moulded case circuit breakers

We will be launching our TemBreak PRO series of moulded casecircuit breakers in 2020, as our next-generation circuit breaker series,
which will be succeeding the TemBreak2 series.
In the range of 100AF* to 630AF, we have developed a new smartcircuit breaker type（being an electronic circuit breaker that has
measurement, display and communication functions with capability
to handle all kinds of information related to the electrical circuit）that
works with energy-saving electrical systems. These are additional newfeatures to our standard product lines of thermal-electromagnetic andelectronic circuit breakers.
It is important to control the amount of electricity used by energysaving electrical systems, and the first requirement for achieving this is
to have highly-accurate measurement of their electricity consumption.
TemBreak PRO Smart breaker features far greater accuracy ofmeasurement than conventional circuit breakers, making it possible tomonitor with fine accuracy for the state of the electrical circuit, including
the amperage, voltage, electric power, electric energy, and so on.

Furthermore, TemBreak PRO enables the digital data of the electricalcircuit to be centrally controlled through a communication network.
Additionally, in order to save space within the energy-saving system
and in reducing the unit's environmental impact, TemBreak PRO of
the 100AF/125AF range is 82% smaller physically as compared to its
predecessor version and the size is as small as 63% as that of the 630AFversion. TemBreak PRO products of the 100AF/125AF range are thesmallest size Smart breaker in the industry.
These products will not only protect electrical circuits in general but
also fit into the smart grid schemes and energy control programs thathave been rapidly ramped up around the world in recent years.
Our aim, with the TemBreak PRO series, is to contribute toa sustainable society by helping to achieve SDGs（ SustainableDevelopment Goals）through our power distribution and controltechnologies.
*AF（Ampere Frame）: The larger the number, the larger is the physical size of thecircuit breaker.

Monitoringfor Safety, Security
and Comfort

Controlling
Energy savings

Corporate Information /Stock Information（As of 31 March 2020）
Corporate ProfileSharesCompany Name

Terasaki Electric Co., Ltd.

Total number of shares authorized to be issued

52,000,000

Head Office

6-13-47 Kamihigashi, Hirano-ku, Osaka 547-0002 Japan

Total number of issued shares

13,030,000

Foundation

1 October 1923

Number of shareholders

Established

1 April 1980

Capital1,236 million JPY

Employees

1,930（Consolidated）

Major Shareholders
Shares owned

ShareTerasaki Co., Ltd.

2,200

16.89

The Master Trust Bank of Japan, Ltd.

1,154

8.86

Taizo Terasaki

1,124

8.62

Terasaki Trust Co., Ltd866

6.64

Kaori Aramaki

738

5.66

Yuzo Terasaki

677

5.19

Terasaki Employee Stock Ownership

666

5.11

Hozansha Co., Ltd.

653

5.01

Terasaki Kyoeikai

517

3.97

Arc Ltd.

400

3.07

Shareholder

550（Non-consolidated）
Consolidated Subsidiaries

Domestic: 5, Overseas: 8

Director ＆ Executive Officer（As of 29 June 2020）
President

Taizo Terasaki

DirectorSenior Managing
Executive Officer

Makoto Suto

DirectorSenior Managing
Executive OfficerShunji Okada

Director
Managing
Executive Officer

Kazunobu Kumazawa Information System

Accounting & Finance,
Business Planning, R&D,
Disclosure
System Division
General Affairs Department,Department

Marine Department SystemDivision
Engineering, Life Cycle

Director
Executive Officer

Masao Nishida

Director
Executive Officer

Yoshihiro Umemoto Circuit Breaker Division

Director
Executive Officer

Hirofumi Kobayashi

Sales and Marketing Circuit
Breaker Division

Director
Audit & Supervisory
Junji Nagase
Committee
Member809（1,000 shares）（％）（Note）Share percentages are calculated without treasury stock（1,021 shares）.

Distribution by Shareholders

Distribution ofshareholdersDirector
Audit & Supervisory
Kunio Chiyoda
Committee Member（External）

809

Director
Audit & Supervisory
Shunji Takano
Committee Member（External）* Treasury stock is included in individual investor and others.

General Affairs
Department

Executive Officer

Syujiro Hamano

Executive Officer

Medical Device Department
Kazuhiro Yoshikawa
System Division

Executive Officer

Masaji Nishino

Circuit Breaker Division

Sharesdistribution

13,030thousand shares* Treasury stock（1,021 shares）is included in individual investor andothers.

6-13-47 Kamihigashi, Hirano-ku, Osaka 547-0002 Japan
TEL：+81-6-6791-2701
www.terasaki.co.jp/english/