YAMAZEN CORPORATION

FY3/24(Q3)

Supplementary
Materials for
Financial Results

Stock Code: 8051

ＡＧＥＮＤＡ
I. FY3/24 (Q3) Financial Highlights
II. Earnings Forecast for FY3/24, Medium-Term Management Plan
III. Capital Policy and Shareholder Returns
Appendix

2

ＡＧＥＮＤＡ
I. FY3/24 (Q3) Financial Highlights
II. Earnings Forecast for FY3/24, Medium-Term Management Plan
III. Capital Policy and Shareholder Returns
Appendix3

FY3/24 (Q3) Consolidated Profit and Loss Results(Million yen)

FY3/23(Q3)PercentagechangeYoY

FY3/24(Q3)Full Year Plan
(Revised Sept. 13,
2023)

Progress Rate

Net sales

393,991

378,130-4.0%

500,000

75.6%

Gross profit

58,201

55,824

-4.1%

-

14.8%

14.8%

-0.0ppt

SG&A expenses

46,06348,282＋4.8%-

Operating profit

12,1387,541-37.9%

10,00075.4%(Operating profit
margin)

3.1%

2.0%

-1.1ppt

2.0%-

Non-operating
profit/loss

719

433

-39.8%--

Ordinary profit

12,857

7,975-38.0%

10,00079.8%

Extraordinary
gain/loss

45

73

-

-

-

Quarterly profit

8,641

5,092

-41.1%

6,700

76.0%

(Gross profit margin)

attributable to owners of parent-

Net sales decreased by 4.0% YoY due to slowing in domestic and overseas capital investment trends. Gross profit
decreased by 4.1% due to the impact of lower sales. Operating profit decreased by 37.9% YoY due to a decrease in grossprofit, an increase in depreciation and amortization and other expenses associated with the introduction of the SAP ERP
system that is a growth investment, and an increase in personnel expenses as an investment in human capital.
4Quarterly Trend in Consolidated Net Sales

FY3/21(million yen)

FY3/22

FY3/23

FY3/24160,000
140,000
120,000

100,000
80,00060,00040,00020,000
0
Q1

Q2

Q3

Q4

5

Outline of Business Segments
Suppliers

YAMAZEN

Users(domestic and overseas)

Production equipment

About 5,000
companies

About 3,000
companies
Machine Tools Division
H.Q.
(Machine tools, etc.)

Makers of factoryequipment, devices,
tools, etc.

Clients

Industrial Solution
Division H.Q.

FY3/24 Q3

Machine Tool
Sellers, Machinery
Tool Trading
Companies, etc.
around Japan

Manufacturers
in Japan(Equipment related to production
facilities, etc.)

Engineering andmaintenance services

Tool & Engineering
Division H.Q.
(Industrial tools and consumables,
etc.)

ExportHome products

Consumer goods (domestic)

Building materials

About 900

38.8 billion yen

Domestic Industrial 65.2 billion yen
Solution
Domestic T&E

58.6 billion yen

Overseas Industrial 21.1 billion yen
Solution + T&E

companies(Building materials andequipment)
Makers of kitchen, airconditioning
equipment, and otherhousing equipment

Housebuilders
Small and large-sizedhouse-builders,renovation
contractors, etc.
around Japan

FY3/24 Q3

Net sales: 132.7 billion yen(accounting for 35.1% of total
sales)
Segment profit
6.4 billion yen
Margin: 4.8%

About 400 companies

About 600

Makers of furniture,home appliances,
etc.

Overseas Machine
Tools

Overseas
manufacturers

Building Materials
Division H.Q.

companies

57.4 billion yen

16 overseas
subsidiaries
and64 overseas
offices*

About 2,900

companies

Net sales: 241.3 billion yen(accounting for 63.8% of total
sales)
Segment profit
5.6 billion yen
Margin: 2.3%
Overseas sales ratio: 24.9%

Domestic Machine
Tools

Home Products Division
H.Q.
(Home appliances, interior, exterior andleisure products, etc.)*Our private brand (PB) products
account for about 60% of sales.

Building
materials

53.3 billion yen

Home products

79.4 billion yen

Generalcustomers

DIY home centers, large
retailers of electricalappliances, mass retailers ofhome appliances, online
shops, TV-based mail-orderfirms, etc.

, etc.

E-commerce/B2C*As of October 31, 2023; figures for the Production Equipment Business only6

FY3/24 (Q3) Net Sales by Business Segment(Million yen)

FY3/23(Q3)

FY3/24(Q3)

PercentagechangeYoY

Machine Tools Division

107,405

96,268-10.4%

Industrial Solution Division

72,42667,867-6.3%

Tool & Engineering Division

79,111

77,195-2.4%(Total for Production Equipment
Business)

258,943

241,331-6.8%

Building Materials Division

50,61253,321＋5.4%

Home Products Division

80,36379,400-1.2%(Total for Consumer Goods
Business)

130,976

132,721

＋1.3%

Other

4,071

4,077

＋0.1%

Total

393,991

378,130-4.0%
7Net Sales Composition by Business (YoY Comparison)

Domestic production equipment: 47.9％ → 48.0％（+0.1ppt）
Overseas production equipment: 17.8％ → 15.9％（-2.0ppt）
ーーーーーーーーーーーーーーーーーーーーーーーー
Production equipment total: 65.7％ → 63.8%（-1.9ppt）

FY3/24 Q3

15.2%

17.3%

15.5%

Domestic production
equipment

FY3/23 Q3

16.0%

16.6%

15.3%

Building Materials Business: 12.8％ → 14.1％（+1.3ppt）
Home Products Business: 20.4％ → 21.0％（+0.6ppt）ーーーーーーーーーーーーーーーーーーーーーーーー
Consumer goods total: 33.2％ → 35.1％（+1.9ppt）

10.3%

5.6%

14.1%

Overseas production
equipment

Building
materials

11.2%

6.6%

12.8%

Domestic Machine Tools

Domestic Industrial Solution

Domestic T&E

Overseas Machine Tools

Overseas Industrial Solution + T&E

Building Materials

Home Products

Other

21.0%

1.1%

Home
products

20.4%

1.0%

8

Production Equipment Segment Overview (Domestic/Overseas)
Domestic Production Equipment Business: Sales of machine tools, etc. were weak, due to the lack of new investment activity in thesemiconductor and automobile industries. Overall, sales of consumables such as industrial tools were also down compared tothe same period of the previous year. Meanwhile, sales of infrastructure-related equipment, mainly steel frame processing
machines, remained strong due to demand from urban redevelopment and the renewal of public infrastructure, as well as theincreased needs for automation and saving labor.
Overseas Production Equipment Business: In the North America Regional Headquarters, sales of machine tools to parts processing users for the
medical and aviation industries were strong, and in Mexico, sales were strong due to the response to the relocation of
production bases from other regions. In the Taiwan Regional Headquarters, sales of machine tools continued to be sluggish
due to declining demand from the electronics and semiconductor industries. In the China Regional Headquarters, the results
were lower than the same period last year due to sales to export-oriented industries being weak, the end of capital investment
for EVs, which was strong last year, and a slowdown in the growth in sales to the renewable energy industry. At the ASEAN
Regional Headquarters, while some areas saw the effects of the delayed recovery in demand for semiconductors, sales tovarious fields such as automobiles were strong in Indonesia and India.

Net sales (Millions of yen)
Machine Tools BusinessIndustrial Solution + T&E Business Total

Production equipment

Domestic

Industrial Solution Business
Tool & Engineering Business
Total
Machine Tools Business

Overseas Industrial Solution + T&E Businesses Total
Total
Net sales
Total

Segment profit

Segment profit margin

FY3/23(Q3)63,205
125,424
65,27060,153
188,630
44,20026,11370,313258,9439,657
3.7%

FY3/24(Q3)

57,434
123,918
65,281
58,636
181,352
38,833
21,144
59,978241,331
5,623
2.3%

Percentage change
YoY

-9.1%
-1.2%
＋0.0%

-2.5%
-3.9%
-12.1%-19.0%-14.7%-6.8%-41.8%-1.4ppt9

Production Equipment Segment Quarterly Sales Trend (Domestic/Overseas)(million yen)Domestic Machine Tools

Domestic Industrial Solution

Domestice T&E

80,00070,00060,00050,00040,00030,00020,00010,000
0

Q1

Q2

Q3

Q4

Q1

Q2

FY3/21

Q3

Q4

Q1

Q2

FY3/22Q3

Q4Q1

FY3/23

Q2
FY3/24

Q3

Q2
FY3/24

Q3(million yen)Overseas Machine Tools

30,000Overseas Industrial Solution + T&E

25,00020,00015,00010,000
5,000

0

Q1

Q2

Q3
FY3/21

Q4

Q1

Q2

Q3
FY3/22

Q4

Q1

Q2

Q3
FY3/23Q4Q110

Consumer Goods Segment Overview (Building Materials/Home Products)
・Building Materials Business: Amid stagnant demand, sales of solar power generation systems, storage batteries, etc. remained
strong due to proposals of high-value-added products in response to consumers' desire to reduce spending due
to soaring utility costs. Proposals for facility renovations that combine environmental products and installation
were also successful in helping SMEs respond to carbon neutrality. In particular, we are aggressively developing
proposals for sets of solar power generation and storage batteries for self-consumption.
・ Home Products Business: Net sales of heating-related products were lower than the same period last year due to a warm winter,in addition to the negative impact on consumer demand for lifestyle products, due to factors including the stay-athome demand by refraining from going out and increased remote working coming to an end, the rise in prices
due to the soaring cost of raw materials, electricity and gas, and the continued depreciation of the yen.
Meanwhile, sales of cooking appliances, AV equipment, kitchen and bathroom products, etc., which are lessaffected by seasonal factors, remained strong, and the overall results were at about the same level as the same
period last year.

FY3/23(Q3)(Million yen)Consumer goods

Building Materials
DivisionHome Products
Division
Total for Consumer
Goods Business

FY3/24(Q3)

Percentage change
YoY

Net sales

50,61253,321＋5.4%

Segment profit

1,518

1,736

＋14.4%

Segment profit margin

3.0%

3.3%

＋0.3%

Net sales

80,36379,400-1.2%

Segment profit

4,140

4,669

＋12.8%

Segment profit margin

5.2%

5.9%

＋0.7%

130,976
5,659
4.3%

132,721
6,406
4.8%

＋1.3%

Net sales
Segment profit
Segment profit margin＋13.2%＋0.5%
11

Consumer Goods Segment Quarterly Sales Trend (Building Materials/Home Products)(million yen)

Building materials

25,00020,00015,00010,000
5,000
0

Q1

Q2
Q3
FY3/21

Q4

Q1

Q2
Q3
FY3/22(million yen)

Q4

Q1

Q2
Q3
FY3/23Q4Q1

Q2
FY3/24

Q3

Q1

Q2

Q4

Q1

Q2
FY3/24

Q3Home products

35,00030,00025,00020,00015,00010,000
5,000

0

Q1

Q2

Q3

FY3/21

Q4

Q1

Q2

Q3

FY3/22

Q4

Q3

FY3/2312

Factors for Changes in Operating Profit(Million yen)

Operating profit

Decrease ingross profit

Increase in
SG&A expenses

2,376

2,219
Operating profit

12,138

FY3/23
Q3

Production
equipment
Building
Materials
Home Products-2,831+371＋613

Depreciation andamortization+912

Commission paid

+1,095Advertisingexpenses
Travel expenses
Freight

YoY: -4,596

7,541

+380
+364
-491

FY3/24Q3
13

Consolidated Total Assets
Assets(End of Mar. 2023)

Liabilities and Total Assets(End of Dec. 2023)(End of Dec. 2023)

Current liabilities

2,385

-24

Current assets

2,361

1,370
Long-term liabilities

216
503

+0

+7

1,441

209

Net assets

deferred tax assets

1,277

+40

1,237

Total assets
2,865

-23

2,888

504

Item

End of Dec. 2023

10.6%

ROE

4.1%

Shareholders’equity ratio
Net assets per
share

ｰ70

Noncurrent assets andEnd of Mar. 2023

42.6%(End of Mar. 2023)

44.2%(Unit: 100 million yen)
*ROE, shareholders’ equity ratio and net assets per share are taken from thefinancial results summary.

90.3 billion yen

Market cap

105.9 billion yen*Market capitalization is calculated by multiplying the closing price at the endof the fiscal year by the number of shares outstanding (excluding treasury
shares) on the same date.

14.4 billion yen

Basic operating
cash flow

7.9 billion yen*Basic operating cash flow is calculated by deducting the increase/decrease inworking capital from operating cash flow.

1,383.65 yen

1,426.68 yen*Amounts less than 100 million yen have been rounded.

14

ＡＧＥＮＤＡ
I. FY3/24 (Q3) Financial Highlights
II. Earnings Forecast for FY3/24, Medium-Term Management Plan
III. Capital Policy and Shareholder Returns
Appendix15

FY3/24 Disclosed Full-year Plan

(Million yen)

FY3/23Results

FY3/24Plan

FY3/24
Plan(Announced May 2023)(Revised Sept. 2023)

PercentagechangeYoY

527,263550,000

500,000-5.2%

Operating profit

16,56315,00010,000-39.6%

Operating profit
margin

3.1%

2.7%

2.0％

-1.1ppt

Ordinary profit

17,28015,00010,000-42.1%

Profit attributable to12,527

10,0006,700-46.5%Net sales

owners of parent

The announced full-year plan for FY3/24 planned for sales to increase but profits to decrease as of May
2023, with depreciation expected due to the acceleration of growth investment, but it was revised tothe above in September 2023 as the recovery in capital investment in the Japanese domestic market isdelayed, and the economic momentum in overseas markets, China in particular, is weak, and a
cautious attitude toward capital investment is expected to continue.
16Full Year Business Plan - Net Sales by Business(Million yen)

FY3/23Results

FY3/24
Plan(Revised Sept. 2023)

PercentagechangeYoY

Machine Tools Division

151,214132,000-12.7%

Industrial Solution Division

96,31593,000-3.4%

Tool & Engineering Division

105,673

103,000-2.5%(Total for Production Equipment
Business)353,203

328,000-7.1%

Building Materials Division

68,03169,000＋1.4%

Home Products Division

100,711

101,000＋0.3%(Total for Consumer Goods
Business)

168,742

170,000

＋0.7%

Other

5,317

2,000

-62.4%

Total

527,263

500,000-5.2%
17

FY3/24 Forecasts for the Production Equipment BusinessNet sales plan
(Revised Sept. 2023)(Million yen)

Production Equipment
Business Total

Full-year

328,000

PercentagechangePercentage

Segment profit
plan

YoY

changeOperatingprofit margin

YoY

-7.1%

8,000

-42.7%

2.4%

Production Equipment Business: 3-year sales trends and full-year forecasts
400,000

250,000
200,000
150,000

027,369265,059

64,942

19,544
43,621✓

Approach to new domains ofsemiconductors, logistics, 3major product industries (food,medical and cosmetics), etc.

141,885✓

Outside Japan, we will
geographically expand andrestructure target markets, andenhance borderless marketingand initiatives in growing
industries.

60,007
FY3/21

Domestic Machne Tools
Overseas Machine Tools

328,000
33,65062,71526,00052,00080,33780,00088,00190,00078,21488,49880,000FY3/22

FY3/23

FY3/24 (plan)

160,416

100,000
50,000Each division will brush up
expertise, and provide solutions
to meet the needs in production
sites, such as “automation andlabor saving” and“decarbonization” at anaccelerated pace.

353,203
330,942350,000
300,000✓

FormerIndustrial
Tools&
Equipment
Division(Domestic)

Domestic Industrial Solution
Overseas Industrial Solution +T&E

Domestic T&E*Ogaki Kiko Co., Ltd., which had been classified as “Other Business,” has been included in “Production Equipment Business” since the Q1 of FY3/23 due to the revision of the performance management
segment of our group. The above performance in FY3/21 is based on the reportable segments before the revision.

18

FY3/24 Forecasts for the Consumer Goods BusinessNet sales plan
(Revised Sept. 2023)(Million yen)

Percentage change
YoY

Percentage

Segment profit
planchangeOperatingprofit margin

YoY

Building Materials Division

Full-year

69,000

＋1.4%

2,400

＋2.5%

3.5%

Home Products Division

Full-year

101,000

＋0.3%

6,000

＋21.0％

5.9%

Consumer Goods Business: 3-year sales trends and full-year forecasts

175,000

162,121167,036

168,742

103,379

104,866

100,711

170,000■Building Materials Division✓ Continue proposal-based salesof high-value-added products✓

Expand sales of new energy
equipment for decarbonization(solar power generation,
storage batteries, etc.)

101,000✓

Strengthen the system for
managing orders andconstruction for facility
renovation projects in nonresidential sector.

69,000■Home Products Division✓ Develop new products thatmeet consumer needs andpopularize own brands

150,000
125,000
100,000
75,00050,00025,000058,741

62,16968,031✓
FY3/21

FY3/22

Building materials

FY3/23

FY3/24 (plan)

Expand the online shop
(YAMAZEN Bizcom)

Home products
19

Revision of Earnings Forecasts - Before/After Comparison(Million yen)Segment

Business

Domestic Machine
Tools
Domestic Industrial
Solution
Domestic T&E
Production
equipment

Overseas Machine
Tools
Overseas Industrial
Solution + T&E

Production
equipment total

Building materials

Home products

FY3/24plan(Announced
May 2023)(Revised Sept.
2023)

Difference
YoY

Difference
from initial
plan

PercentagechangeYoY

Percentagechangefrom initialplan

88,49894,00080,000-8,498-14,000-9.6%-14.9%Net sales

88,00197,00090,000＋1,998-7,000

＋2.3%

-7.2%

Net sales

80,33786,00080,000-337-6,000

-0.4%

-7.0%

Net sales

62,71565,00052,000-10,715-13,000-17.1%-20.0%Net sales

33,65031,00026,000-7,650-5,000-22.7%-16.1%Net sales

353,203

373,000

328,000-25,203-45,000-7.1%-12.1%

Segment profit

13,965

14,5008,000-5,965-6,500-42.7%-44.8%

Segment profit
margin

4.0%

3.9%

2.4%

-1.5pt-1.4pt−−Net sales

68,031

71,00069,000＋968-2,000

＋1.4%

-2.8%

Segment profit

2,341

2,400

2,400

＋58

0

＋2.5%

0

Segment profit
margin

3.4%

3.4%

3.5%

＋0.0pt＋0.1pt−−100,711

105,000

101,000＋288-4,000

＋0.3%

-3.8%

Segment profit

4,960

5,800

6,000

＋1,039＋200＋21.0%＋3.4%

Segment profit
margin

4.9%

5.5%

5.9%

＋1.0pt＋0.4pt−−168,742

176,000

170,000＋1,257-6,000

＋0.7%

-3.4%

Segment profit

7,301

8,200

8,400

＋1,098＋200＋15.0%＋2.4%

Segment profit
margin

4.3%

4.7%

4.9%

＋0.6pt＋0.3pt−−Net sales
Consumer goods
total

FY3/24plan

Net sales

Net sales
Consumergoods

FY3/23
results

20

Medium-Term Management Plan: Disclosed Plan for
Sales/Profit/Management Indicators

FY3/23 results(Million yen)

FY3/22(First year of MediumTerm Management Plan)

FY3/24 plan

FY3/24 plan

(Announced May 2023)(Revised Sept. 2023)

FY3/25 plan
(Final year of Medium-Term
Management Plan)

Net sales

501,872

527,263550,000

500,000

600,000

Operating profit

17,133

16,56315,00010,00021,000Operating profit
margin

3.4%

3.1%

2.7％

2.0％

3.5%

Ordinary profit

17,093

17,28015,00010,00021,000

Profit12,023

12,527

10,0006,700

14,000Indicators(Million yen)

Return on equity(ROE)
Basic operating
cash flow
Shareholders’equity ratio

FY3/23 results

FY3/25 plan

(First year of MediumTerm Management Plan)

FY3/24 plan

FY3/24 plan

(Announced May 2023)(Revised Sept. 2023)

10.9%

10.6%

7.9％

5.3％

10.0%

12,052

14,427

14,50011,00018,000

39.9%

42.6%

40～45%

40～45%

40～45%

FY3/22(Final year of Medium-Term
Management Plan)

21

ＡＧＥＮＤＡ
I. FY3/24 (Q3) Financial Highlights
II. Earnings Forecast for FY3/24, Medium-Term Management Plan
III. Capital Policy and Shareholder Returns
Appendix22

Policy for Improving Corporate Value in theMedium/Long Term (1)We aim to improve our corporate value by pursuing all of “earning capacity,” “yield of capital,” and“financial soundness.”
Key issues
Net sales

Suppliers

Nations and local
communities⚫ Realization of a rewarding
workplace⚫ Establishment of atransparent
governance system

SG&A
expenses - Other
SG&A expenses Personnel expenses

Interest

Taxes

Stakeholder satisfaction

Financial
institutions

Cost of sales

Addressing issues

Employees andtheir families

Stakeholders

Other business
partners⚫ Expansion of green
business⚫ Digitization to maximize
customer value⚫ Realization of sustainableprocurement and supply

ProfitShareholders
Shareholders’equityReduced cost ofshareholders’ equity

ROE maintained above the cost ofshareholders’ equity

Customers*Rise in equity spread×

Optimize
shareholders’ equity

Increased growth rate
⚫ Credit rating with consideration

for trading business⚫ Enhancement of engagement⚫ Further stabilization of trading business⚫ Reduction of business risks through⚫ Expansion of cash flows through efforts

to solve material issues

efforts to solve material issues

Boost sustainable growth potential by improving dialogue and reducing
business risks⚫ R&I A-(stable) /JCR A(stable)⚫ Shareholder return focused on

cash allocation

Capital and shareholder
returns policy

23

Policy for Improving Corporate Value in theMedium/Long Term (2)⚫ It is assumed that the ratio of cost of shareholders’ equity will be around 7% and the average growthrate of basic operating cash flow until the final fiscal year of the medium-term management plan willbe 3.82%*.
⚫ If ROE reaches 10% in FY3/25, business value will improve.
ROE/cost of shareholders’ equity

（％）

14.0

Market cap/basic operating cash flow

(million yen)
Cost of shareholders’equity (30-year bond)

13.8

150,000

Cost of shareholders’equity (10-year bond)
ROE

12.0

10.9

10.0

120,000

8.0
7.5
7.4

7.2

7.5

6.7

7.3

18,00019,000of parent
基礎的営業キャッシュ・フロー
Basic operating cash flow

14,37816,00010,000

6.9

6.2

6.4

6.0

FY3/21
21/3

FY3/22
22/3

FY3/2323/3

60,000

5.3

5.5
5.0

FY3/2020/3

Net income attributable to owners
親会社株主に帰属する当期純利益

90,000

4.0
FY3/1919/3(million yen)

時価総額
Market cap

13,000

8.6

8.0
6.0

10.6

Shareholders' equity
自己資本30,000

7,000
4,000

FY3/24(forecast)24/3(予)*1: Estimated value as of March 31, 2023.
*2: Starting from FY3/19, which saw the best performance before the outbreak of COVID-19.

24

Capital Policy Initiatives Implemented in the Current Year
Background
Timing

Corporate Action

Acquisition of Euro-yen CBs & treasury shares
April 2021
September 2021 Acquisition of treasury shares
Secondary sale of shares held byDecember 2023
financial institutions

Number of shares
held

Destination

3,870,900
1,652,900

Treasury shares

6,711,100

Mainly individual
shareholders

Total:
12,234,900(12.8%)

Reduction ofpolicystockholdings

Marketliquidity

Ratio
offloating
shares

EPS

ROE

〇
〇

－
－

－
－

〇
〇

〇
〇

〇

〇

〇

－

－

Treasury shares

Objective
1

Realize diversification of shareholder base through fluidization ofclosely-held shares

2

Plan to increase the TOPIX inclusion ratio through increasing the ratio of
floating shares

3

Strengthen our response to social demands from shareholders,investors, etc.

4

Realize increased trust in the stock market and improved brand value

Fluidizationof closelyheld shares

Establishmentof atransparent
governancesystemReduced costofshareholders’equity25

Change in Shareholder Returns Policy (Disclosed on August 10, 2023)
Reason for change:
The shareholder returns policy is specified in terms of the consolidated payout ratio, however, because the current Medium-Term Management
Plan incorporates an increase in depreciation and amortization due to business investments and capital expenditures, and there is a possibility
that shareholder returns will be at an inadequate level based on the progress of the investment plan and a short-term downturn in earnings, wehave therefore revised our shareholder return policy as follows to ensure stable and continuous shareholder returns.

BeforechangeYamazen Corporation’s basic policy has been to return profits to shareholders in consideration of profit levels, based on theestablishment of a stable financial base and improvement of profitability, and to maintain stable dividends to shareholders
with a target payout ratio of 30%.

After change

Yamazen Corporation has positioned return of profits to shareholders as a priority issue for management. Our basic policy is
now to distribute profits in line with business performance, while balancing investment for sustainable growth withenhancement of corporate value and financial soundness to prepare for diverse risks, with the annual dividend amount set
at a consolidated dividend payout ratio of 40% (performance-linked profit distribution indicator) or a dividend on
equity ratio (DOE) of 3.5% (stable profit distribution indicator), whichever is higher.
Yamazen Corporation will also flexibly implement share repurchasing in consideration of timing and financial position inorder to provide additional returns to shareholders and improve capital efficiency.

Applicable period: FY3/24 and FY3/25(During the period of the Medium-Term Management Plan “CROSSING YAMAZEN 2024”)
１株当たり当期純利益
Profit per share

(Yen)
（円）

１株当たり配当金
Dividend per share

Consolidated
連結配当性向（％）
payout ratio

140.0065.0

120.00

（％）
65.0

50.0

80.00

45.0

60.00

40.0

20.00
0.00

4.3

60.0

Net assets per share
１株当たり純資産

3.9

3.8

DOE ratio
純資産配当率（%）

3.8
3.5

55.0

100.0040.00

Dividend per
１株当たり配当金
share

(Yen)
（円）
1,500.00

22.5

25.5

32.1

35.1

33.0

30.6

30.2

35.0

26.2

28.0

28.4
24.9

1,000.00

2.6
500.00

2.9

3.0

3.0

1.9

30.0
15.00 15.00 20.00 30.00 30.00 32.50 36.00 30.00 20.00 35.00 40.00 49.00

25.0
20.0

0.00

4.0
3.5

3.1

3.0

（％）
4.5

3.0
2.5
2.0
1.5

26

Shareholder Returns➢➢

FY3/23: Paid an interim and year-end dividend of 20 yen per share each, for an annual dividend of 40 yen per share.
FY3/24: Plan to pay an interim dividend of 20 yen per share and a year-end dividend of 29 yen per share, for an annual dividend of 49 yen per
share.

(Yen)（％）

160.00140.00

Profit per share

65.0

Consolidated payout ratio

60.0

120.0050.0

100.00
80.00

30.6

33.0

35.0

28.0

30.2

40.0

28.4

26.2

24.9

60.00

30.0
20.0

40.00
20.00

70.0

98.01

90.82

107.79128.80

85.60

80.25

133.74141.0075.41

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24
plan

0.00

10.0
0.0

FY3/18

FY3/19FY3/20FY3/21

FY3/22

Total for the last 3 years
FY3/22-FY3/24
plan

FY3/24plan

FY3/23

Interim

13.0

15.0

16.0

10.0

10.0

20.0

20.0

50.0

Year-end

*19.5

*21.0

14.0

10.0

*25.0

20.0

29.0

74.0

Annual

*32.5

*36.0

30.0

20.0

35.0

40.0

49.0

124.0

Payout ratio (%)

30.2

28.0

35.0

24.9

26.2

28.4

65.0

35.4

Dividend paid (million yen)

3,074

3,405

2,837

1,891

3,115

3,560

4,362

11,038

733

-

-

-

5,999

-

-

5,999

Dividend per share (yen)Amount of treasury stockacquired(million yen)-

*Includes special dividends and commemorative dividends

27Appendix

28

[FAQ] Relationship Between Net Sales of Domestic Production Equipment Businessand the Market Environment

Regarding the discrepancies between the market environment and the production status of
SME manufacturers (Machinery, Industrial Solutions and T&E Business)
The supply-demand balance for semiconductors has eased and automobile production is on the road to recovery, but the
impact on SME manufacturers that produce tertiary and quaternary components, who are our main end users, is currently
limitedQuaternarypartsmanufacturer

Primary parts
manufacturer

Secondary parts
manufacturer

Automobile
manufacturer

Tertiary parts
manufacturerParts
inventory

Secondaryparts
production
possibleParts
inventory

Primary
parts
production
possible

Automobile
assembly
possible↓

Production
Orders are placed with tertiary andquaternary parts suppliers wheninventories at secondary parts
suppliers become tight

There is a time lag betweenchanges in automobile production
volume and the occurrence ofdemand from SME manufacturers,
who are our main end users

Production is possible
through easing ofsemiconductor supplydemand balance* The above chart is an image only.

29

[FAQ] Background to Restructuring of the Industrial Tools & Equipment BusinessIn addition to the trends of development of EVs in the automobile field and automation and labor saving to cope with the decrease of theworkforce, the initiatives for carbon neutrality and digitalization of business changed the flow of information. In particular, commercesites and logistics systems evolved remarkably.
In order to actualize the corporate vision for 2030, YAMAZEN will maximize “expertise,” which is demanded and recognized in the market,
and differentiate our products from competitors’. To do so, we divided Industrial Tools & Equipment Business into “Industrial Solution
Division Headquarters” and “Tools & Engineering Division Headquarters” in April 2023.
We will extract and summarize the characteristics of each product category and issues with them, conduct investment based on growthstrategies for each category, and swiftly implement business strategies while expecting profitability and potential as specializedbusiness.

Industrial Tools &Equipment Business

Divided in Apr. 2023

Industrial Solution Division Headquarters
Major product categories:
Proposing systems that contribute to automation, labor saving,
and carbon neutrality of production sites, including material
handling devices, mechatronic devices, and aids for environmental
improvement, and selling components
Priority fields:
To give comprehensive solutions to the “shortage of workers,”“decarbonization,” “digitalization,” etc. facing small and mediumsized enterprises and local users
To establish a system for giving proposals to meet needs fromindividual users
To focus on the cultivation of new industries and the direct
approach to users
To enhance the development of original products and systems

Tool & Engineering Division Headquarters
Major product categories:
Cutting tools, accessory tools, Measuring instrument, handtools, electric tools, and hydraulic and pneumatic tools
Priority fields:
To acquire a market share by enhancing the technicalmarketing capability in the peripheral field of machine tools
To receive more repeat orders from users in parallel with the
expansion of commercial distribution
To redevelop operation bases (Internet infrastructure andlogistics functions), establish a system for swiftly supplying
information and products to users, and differentiate ourbusiness from competitors’30

[FAQ] Competitive Advantage of YAMAZEN's Overseas
Production Equipment Business
YAMAZEN's Advantages (1)YAMAZEN's Advantages (2)Extensive global network

Localized engineering capabilities that can support
users' global strategies•

Wide geographic coverage with 64 offices in 14 countries andregions overseas(Approx. 330 engineers out of total of approx. 1,200 overseas staff)•

Our localized sales structures and advanced engineering funtcion*
allows us to sell directly to Japanese and local users, which achieves
strong relationships of trust and high gross profit margins•

Strong relationships of trust with users enable us to respond to users’
global investment strategies, which leads to further businessdevelopment*As of Oct. 31, 2023. Figures for the Production Equipment Business only.

•

The scale of our global network, built up over our long history since1963, is one of the largest among trading companies specializing
in production equipment, and the barrier to entry is highCountry B

Country A
The YAMAZEN offices in eachcountry can respond when auser relocates or establishes
new production bases in adifferent country

Japaneseaffiliated user

Local
users

Local
users

YAMAZEN's head office andlocal subsidiaries constantly
share information and respondto user needs from all angles

YAMAZEN

株式会社山善本社
Head Office

中国支社
Headquarters

China Regional

北米支社
Headquarters

Taiwan Regional
台湾支社
Headquarters

アセアン支社
Headquarters

Directly under the
本社直轄地域
jurisdiction of the HeadYAMAZEN CORPORATIONASEAN Regional

The localized
sales structure
through national
staffs andextensiveengineering builds
relationships oftrust

North America Regional

OfficeAdvancedengineering function
高度なエンジニアリング機能

YAMAZEN

Japaneseaffiliated user

Centralization of information fromlocal offices and the head office forsecurity trade controls defined in theForeign Exchange and Foreign TradeAct

YAMAZENJapan

YAMAZEN’s engineers provide total support for manufacturing by offering a one-stop service that includes
design, installation, testing, after-sales service, and maintenance in response to user needs

31

Pioneering a new future, with you all[Note on forward-looking information]“The forward-looking statements in this document, including the Medium-Term Management Plan and forecasts, are based on information currently available to the Company and certain
assumptions that the Company considers reasonable, and are not intended to be a promise by the Company that they will be achieved. Actual results may differ significantly due tovarious factors. Factors that may affect future forecasts include the economic environment in which the Company operates, competitive pressures, relevant laws and regulations,changes in product development status, and exchange rate fluctuations. However, factors that may affect the future forecasts are not limited to these.”32