FY2023 Financial Results
SATORI ELECTRIC CO., LTD.
July 17, 2024

Contents

1. Summary of FY2023 Financial Results & FY2024 Forecast(Consolidated)

2. Medium-Term Management Plan 2026

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1. Summary of FY2023 Financial Results & FY2024 Forecast (Consolidated)3

Summary of FY2023 Financial Results & FY2024 Forecast(Unit: 100 million yen)

FY2022

FY2023ResultsResults

FY2024
YoY Change

Forecast

YoY Change

Net sales

1,463

1,481+1.2%

1,540+4.0%

Operating profit

37.9

47.5

+25.4%

43.0▲9.6%Ordinary profit

28.6

36.5

+27.4%

35.0

▲4.2%

Profit attributable toowners of parent

22.5

21.5

▲4.5%

25.0

+15.9%

136.4 yen

147.2 yenMonthly average exchangerates (US$/¥)

140 yen Operating profit for FY2024 is expected to decrease compared to the previous fiscal year,
but is expected to increase compared to the previous fiscal year excluding the impact of exchange rates.
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FY2023 Sales(Results): YoY Segment Comparison(Unit: 100 million yen)

1,463

1,481Segment

312300Industrial
Infrastructure

628127477▲ 82491320439

YoY (amount)
YoY (Rate)▲12▲4%Enterprise▲136

Mobility+192

Global▲22%+151%▲37▲8%Main YoY factors[▲] Decrease in demand for control
equipment for machine tools[▲] Decrease in sales of procurement
management services[+] Increase due to the consolidation ofSMET*, increased sales of semiconductors forautomotive applications[▲] Decrease in sales of semiconductors andelectronic components due to production
adjustments for PCs and office equipment.

▲ 70

Elimination between segments

FY5/2023 First half FY5/2024 First half
FY2022
FY2023※SMET is abbreviation for SM ELECTRONIC TECHNOLOGIES PVT LTD.

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FY2023 Operating Profit YoY Factor Comparison(Unit: 100 million yen)

Increase factors
Decrease factors+1.9

47.5+1.6+4.2+1.9

37.9[Mobility][IndustrialInfrastructure][Mobility]

Increase in semiconductors
Increase due tofor automotive applications the consolidation of SMET

Increase in social infrastructure(electricity, telecommunications, etc.)[Effect ofexchange rate*][Enterprise ・ Global]
Decreasing demand for devices andsolar power generation systems, etc.

FY2022*Difference between the actual rate of 136.4 yen for FY2022 and theactual rate of 147.2 yen for FY2023

FY2023

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FY2024 Sales(Forecast): YoY Segment Comparison
1,481
300

491320439▲ 701,540(Unit: 100 million yen)

BusinessSegment

YoY (amount)
YoY (Rate)

Main YoY factors

320
Industrial
Infrastructure+20+7%[+] Recovering demand for devices forsemiconductor manufacturing equipment.

521
Enterprise+30Mobility+13Global▲5333434▲ 68+6%+4%▲1%[+] Recovering demand for devices, storage,etc.
[+] Increase in sales of au0000000tomotive
electronic components for the Indian market,
and start of semiconductor design business[▲] Decrease in sales of electroniccomponents due to stagnant demand for PC

Elimination between segments

FY2023

FY2024SATORI ELECTRIC CO., LTD.
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8

FY2024 Operating Profit YoY Factor Comparison(Unit: 100 million yen)

Increase factors
Decrease factors

47+1+1+1[Enterprise[Mobility[Global[Corporatebusiness]business]business]and eliminations]

Personnel program reforms

Start of semiconductor

Electronic component

Decrease in・DC HR recruitment

design businessproduct mix for PCs

M&A expenses+437▲10+2▲3[Effect of[Human capitalexchange rate*]

investment][IndustrialInfrastructurebusiness]

Recovery in demand for
Semiconductor
devices, solar power
manufacturing equipment
conditioners, etc.
・Increase in machine tools, etc.

FY2023

43FY2023(Excluding exchange rate effects)* Difference between the actual rate of 136.4 yen for FY2023 and theactual rate of 147.2 yen for FY2024

FY2024SATORI ELECTRIC CO., LTD.
8Dividend Forecast for FY2024Dividends per share(Unit: yen)

80
Interim

86

Term end

5030

Dividend payout ratio
against profit

4640

FY2023Results

FY2024
Forecast55%

51%

Based on the full-year outlook, the annual dividend is expected toincrease to 86 yen in accordance with our dividend policy.

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2.Medium-Term Management Plan 2026

1011

FY2024 Forecast and Medium-Term Management Plan 2026

Net sales

Operating Profit

1,800
1,481
Industrial
Infrastructurebusiness

300

Enterprise business

491

1,5405547347

320613(Unit: 100 million yen)

Industrial
Infrastructurebusiness4320161617521
Enterprise business2016403
Mobility business

32033324

Global businessElimination
between segments

439
▲ 70

FY23
FFY2023
Results

434▲ 68

FY24
FY2024
Forecast

Mobility business

1817

Global business

66486
▲ 49

FY26
FY2026
Planning

Elimination
between segments▲13FY23
FY2023Results▲12FY24
FY2024
Forecast

6▲13FY26
FY2026
Planning
SATORI ELECTRIC CO., LTD.
11Initiatives to Enhance Corporate Value[Re-post]

To achieve PBR of 1.3 times or more by exceeding shareholder capital cost of 7% and achieving ROE of 9% or more

[FY2026 Target]

ROE
Return on equity

×9% or more

PER
Price-earnings ratio

14 times(assumed)

Improvement of ROE=PBR
Price Book-value Ratio

More than 1.3 times
Cost of Equity Reduction

1. Growth Strategies

3. Non-financial Initiatives

・Focusing on growth markets (Industrial Infrastructure, Mobility, India, etc.)
・Acceleration of M&A strategy
・Promotion of ROIC management

・Promotion of human capital management
Strengthen demand creation human resources
Engagement improvement, etc.

2. Financial Initiatives>

・Enhancement of corporate governanceThorough skill matrix, etc.

・Improving CCC by reducing inventory holding months*Calculated based on CAPM(Capital Asset Pricing Model) basis.
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Business Portfolio Strategies[Medium-Term Management Plan 2026 Business Portfolio Strategies][Re-post]

 Industrial Infrastructure business Solving social issues such as labor shortages through the use ofrobots

 Mobility business Expansion of in-vehicle semiconductors, particularly in CASE
 Developing the Indian Market through SMET
 Creating synergies with MAGnetIC* Enterprise businessIncreasing added value by “shifting to Intangibles Selling" Realizing low-cost operations through DX utilization
 Transfer of the switch business Global businessExpansion of local business*The company name of MAGnetIC is scheduled to be changed to SystematIC.
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Business Strategies ① Transfer of Switch BusinessTransfer of shares to OTAX, a manufacturer and distributor of industrial switches with strengths, isconducted as part of a review of the business portfolio.

Switch business・Improving profitability of capital・Expanding product lineup toincrease market share

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Business Strategies ② Order for robotics automation equipment from a sake brewery••

BeforeAfter

Challenges of Customer

Effect of Introduction

Accelerating labor shortage
Heavy labor involved in bottle transport•••Packing process

Labor saving through automation
Ensuring safety by reducing the workload of transportation
Improving production efficiency by proposing optimal allocation ofpeople and machines

Introduction of FAMS Co., Ltd.‘s automation equipment
Scheduled to start operation in January 2025
Machida Shuzo Co., LTD.
(Amami Oshima, Kagoshima)

Automaticpacking

Introduction exampleSATORI ELECTRIC CO., LTD.
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Business Strategies ③ Expansion of Mobility Market
SMETMobility
Expansion of in-vehicle semiconductors, particularly in CASE
[Products]‣ Drive ICs‣ Sensor ICs

Cabin lighting

Steady expansion in India market•

EV 2-wheeled Vehicle solutions•

Solutions for Trains•

Creating synergies through collaboration with other SATORI
business segments(Design-in: 4 companies)(Sample Evaluation: 5 Companies)

・Introduction of Insulation-Monitoring Systems “Leakele” to India

Liquid crystal displays

Net sales
Unit: 100 million yen

Steering control+41%270191
Brake control

Engine controlMirror control

Air pressuresensor

FY2023

FY2023 ACTUAL

FY2026FY2026 FORECAST

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Business Strategies ④ Entering the semiconductor circuit design business
Overview of SystematIC
Company name

SystematIC Design B.V.

Location

Netherlands（Delft）

Management

Richard Visee（CEO）
Gert van der Horn（CTO）

Business

Design, IP and products of IntegratedCircuits; Innovative design sensor and powerchips

Found in1998

Capital（FY22）Euro 872,261

No. of Employees

23

Main markets

Industrial, consumer, automotive>20 years in Japan>5 years products

SATORI ELECTRIC CO., LTD.
17Management

Gert van der Horn

Richard Visee

CTO, Founder

CEO , Founder• Masters degree in Electrical Engineeringfrom the Technical University of Delft• Japanese contacts for more than 20 years• Active in circuit and system design for
more than 30 years• Technology expert• Masters degree and PhD degree fromthe Technical University of Delft• Active in circuit and system design for
more than 30 years

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Innovation ＆ Strength
Our Strength

Innovation in integration:
EV & solar, haptic, biometric, class D audio, AI,energy harvesting, security, etc.

Innovation through cooperation:••••

Current sensors industrial, automotive & smart grid•

Applications: inverters, OCP, BMS•

Reduce BOM, smaller and smaller devices, newFoundry, Test & Assembly, M&S
IDM/OEM
Complementary tech and new techfeatures and functions

Long-term trusting relationships with customers

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Development of the semiconductor circuit design business

EuropeChinaKorea

JapanNorthAmerica

TaiwanIndia

SystematIC‣Semiconductor designtechnology‣Proprietary analog IPSatori‣Global network
Increasing corporate
value through
Synergy effects‣Broad customer base

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Medium-Term Plan2026
Revenue

Unit:M EURO

10.8

 Product based Growth in Revenue
 Expand business in Asia and North America with+ 178%

sales Satori’s support
 Bring IP licensing business alongside expanding
profits from existing IP royalty business

3.9

 Enhance Product Development and ProductSupply EBITDA over 10%

2023年度(実績)
FY2023

2026年度(計画)FY2026* SystematIC's fiscal year ends in December.

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Revenue

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Promotion of Governance Reforms
Reviewing management oversight and execution systems to strengthen global governance and vigorously promote swift
management execution<Further strengthening of Supervisory function of theBoard of Directors>• Ratio of inside directors and outside directors to 1:1<Strengthening of business execution system>• Changing the system from appointing executive officers and division heads
separately to one in which, in principle, division heads also serve as executive
officers.
⇒ 25 persons ⇨ 17 persons

Reduced by 8 persons<Enhancement of subsidiary-governance as a Global<Strengthening the Management Team Committed to Achieving thecompany>

Medium-Term Management Plan>• Introduce IFRS to improve management quality. (Scheduled forFY2026)• Continued application of performance-linked stock compensation plan
• Introduction of incentive system for employment-type executive officers

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Expansion of Human Capital Investment
Human Resources Management Policy

Developing and producing human resources who can contribute to transformation of existing businesses
and establishment of new business models
OutputCultivating

Change compensation system

Number of DC* Personnel

in line with expected roles*Demand creation

200 million yen
Enhancing in-house

Appointment of young talenttraining system(Target of 1% of operating profit)
・New business development training
・Management training, etc.

Career recruitment

Expansion of training
programs

Acceleration of 2026
Medium-termManagement Planwith Value TalentAcquisition ofready-to-work talent(Frame) 100 million yen

Engagement Score(Fostering a culture of taking onchallenges)

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Notice
The forward-looking statements contained in this material are based on Satori’s

current assumptions, expectations and beliefs in light of the information currently
possessed by it, and involve known or unknown risks, uncertainties and otherfactors could lead to outcomes that differ materially from those presented in suchforward-looking statements.

These risks, uncertainties and other factors referred to above include, among
others:Economic conditions and consumer trends in major markets
Large fluctuations in foreign exchange rates

Substantial fluctuation in prices in capital markets
Rapid changes in the supply-demand relationship in the major
product markets
Technological innovation and changes in customers’ needs
Natural disasters and the spread of infectious diseases

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Appendix26

Profit and Loss Trends by Segment for FY2023
FY2023(Unit: 100 million yen)
Upper: Sales
Lower: Operating profit

Results

Profit ratio

Industrial Infrastructure
Business

300
15.9Enterprise Business

491
20.6

Mobility Business

320
18.2

Global Business

439
5.7

Company-wide andeliminations
Total

FY2022※1 ▲70
▲13.0
1,481
47.5

YoY

Results

Profit ratio

5.3%▲4%+41%

312
11.3

3.6%

4.2%

▲22%
▲13%

※2 62823.7

3.8%

5.7%+151%+75%※2 127
10.4

8.2%

1.3%

▲8%+19%477
4.8

1.0%--▲82▲12.4-

3.2%+1%+25%

1,463
37.9

2.6%

※1 Includes elimination of inter-segment transactions. ※2 Storage part have been reclassified due to a change in the segment classification.
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Profit and Loss Trends by Segment for FY2024(Forecast)
FY2024(Unit: 100 million yen)
Upper: Sales
Lower: Operating profit

Forecast

Industrial Infrastructure
Business

320
16.5

Enterprise Business

521
16.5

Mobility Business

333
16.7

Global Business

434
5.7

Company-wide andeliminations※1 ▲68
▲12.4

Total

1,540
43.0

FY2023

Profit ratio

YoYResultsProfit ratio

5.2%+7%+4%30015.9

5.3%

3.2%

+6%
▲20%

491
20.6

4.2%

5.0%+4%
▲8%

320
18.2

5.7%

1.3%

▲1%
▲2%

439
5.7

1.3%--▲70▲13.0-

2.8%

+4%
▲10%

1,481
47.5

3.2%

※1 Includes elimination of inter-segment transactions.
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