Financial Results Briefing for
1Q of the Fiscal Year Ending March 31, 2025 (FY2024)

August 9, 2024
(Securities code: 7721)
1Key Takeaways
FY2024 1Q

1

2

While net sales decreased, operating profit was on par with the same period last fiscal year.

Net sales¥8,693 mn

Down ¥724 mn YoY

Operating profit¥(479) mn

Up ¥4 mn YoY

Full-year forecasts for FY2024
FY2024 earnings forecasts announced on May 10, 2024 has been kept unchanged,
expecting year-on-year increases in both net sales and operating profit.

Net sales¥57,300 mn

Up ¥10,134 mn YoY

Operating profit¥3,560 mn

Up ¥792 mn YoY

6.2%

Up 0.3 %pts YoY

Operating profit margin

3

Order backlog reached a record high, mainly driven by Defense & Communications
Equipment.

FY2023-end ¥44,720 mn

FY2024 1Q ¥50,055 mn©TOKYO KEIKI INC. All Rights Reserved2

1. Summary of Financial Results for 1Q of FY2024

Contents
1. Summary of Financial Results for 1Q of FY2024

2. Full-year forecasts for FY2024
3. Topics
References
 Business Trends

 Our Businesses©TOKYO KEIKI INC. All Rights Reserved3

1. Summary of Financial Results for 1Q of FY2024

Net Sales and P/L

YoY Change
FY2023 1Q

FY2024 1Q
Amount(Million yen)%

Net sales

9,417

8,693

(724)

-7.7％

Operating profit

(483)

(479)

+4

–

Ordinary profit

(404)

(407)

(3)

–

Profit attributable toowners of parent

(311)

(258)

+53

–

Exchange rate
(JPY/USD)

FY2023 1Q
137.50 While Marine Systems Business reported
strong net sales, Defense &Communications Equipment Businessrecorded a year-on-year decrease in net
sales because sales are weighted toward
2Q and beyond.
 Operating profit was on par with the same
period of the previous fiscal year. This wasprimarily attributable to an upturn in costof-sales ratio driven by the changing
product mix and the depreciating yen.
 Although deliveries are concentrated evenmore than usual in the second half in
FY2024, our businesses progressed asplaned.

FY2024 1Q
155.00©TOKYO KEIKI INC. All Rights Reserved4

1. Summary of Financial Results for 1Q of FY2024

Analysis of YoY Changes in Operating Profit(Million yen)
*Estimated value

Operating profit+4

 Improvement in cost-of-sales ratio:
Marine Systems Business showed strong
performance in its maintenance services.

+53*

+20

+153*

(483)

 Impact of exchange rate:
Yen remained depreciated against the US
dollar at ¥155.00, compared to ¥137.50 in
the same period last fiscal year.

(479)

(63)
(158)*FY2023
1Q

Decrease in
net sales

Improvement
in cost-ofsales ratio

Impact ofexchangerate

Increase in
SG&A
expenses

Decrease in
R&D cost

FY2024
1Q©TOKYO KEIKI INC. All Rights Reserved51. Summary of Financial Results for 1Q of FY2024

Net Sales and Operating Profit (Loss) by Segment

FY2023 1Q

YoY Change

FY2024 1Q

Amount(Million yen)

Net Sales

%

2,458

3,022

+564

+22.9％

180

400

+220

+122.5％

Marine Systems
Operating Profit

Hydraulics andPneumatics

Net Sales

2,644

2,515

(129)

-4.9％

Operating Profit

(70)

(39)

+32

–

Fluid Measurement
Equipment

Net Sales

597

618

+22

+3.7％

Operating Profit

(132)

(174)

(42)

–

Defense &Communications
Equipment

Net Sales

3,208

2,077

(1,131)-35.3％

Operating Profit

(329)

(472)

(143)

–

Net Sales

510

460

(50)

-9.8％

Operating Profit

(111)

(170)

(59)

–

Net Sales

9,417

8,693

(724)

-7.7％

Operating Profit

(483)

(479)

+4

–

Others

Total*Segment sales and operating profit are presented on a pre-adjustment basis.

©TOKYO KEIKI INC. All Rights Reserved61. Summary of Financial Results for 1Q of FY2024

Net Sales and Operating Profit (Loss) by Segment
Marine Systems(Million yen)

Net sales

Operating profit
 In addition to strong performance in thecommercial vessels and overseas markets andmaintenance services, the depreciation of the yen
led to year-on-year increases in both net sales andoperating profit.

Hydraulics and Pneumatics(Million yen)

Net sales

Operating profit
 Sluggish conditions in markets for plastic
processing machinery, machine tools, andconstruction machinery resulted in a year-on-year
decrease in net sales.
 Our efforts to secure profits through optimizing
selling prices, among other measures, contributed
to a smaller operating loss, despite being adversely
affected by a decrease in net sales.

*Segment sales and operating profit are presented on a pre-adjustment basis.

©TOKYO KEIKI INC. All Rights Reserved7

1. Summary of Financial Results for 1Q of FY2024

Net Sales and Operating Profit (Loss) by Segment

Fluid Measurement Equipment(Million yen)

Net sales

Operating profit

Defense & Communications Equipment(Million yen)

Net sales

Operating profit

 Despite the absence of large-scale projects for
agricultural water we had worked on in the same
period last fiscal year in the public sector market,
the segment enjoyed strong performance in multistory parking garage projects in the fire
extinguishing equipment market. As a result, thesegment posted a year-on-year increase in net
sales.
 Declining demand for gas-cylinder valve inspectionin the fire extinguishing equipment market
worsened the cost-of-sales ratio, resulting in alarger operating loss.
 The segment tends to post operating loss in 1Q assales are usually concentrated in 4Q due to thenature of the measuring instruments business.
 Sales decreased in the Defense Business mainly
because the delivery of equipment for naval
vessels is weighted toward 2Q and beyond.
 In the Communications Equipment Business,
although sales of equipment for broadcastingstations remained firm, sales were weak in othertypes of equipment.
 As a result, the segment posted year-on-year
decreases in both net sales and operating profit.
 The segment tends to post operating loss in 1Q assales are usually concentrated in 4Q due to thenature of the Defense Business.

*Segment sales and operating profit are presented on a pre-adjustment basis.

©TOKYO KEIKI INC. All Rights Reserved8

1. Summary of Financial Results for 1Q of FY2024

Net Sales and Operating Profit (Loss) by Segment

Others (Inspection/Railroad)(Million yen)

Net sales

Operating profit
 The segment posted year-on-year decreases inboth net sales and operating profit due to being
adversely affected by production cutbacks ofpacking materials by customers in the Printing
Inspection Equipment Business, despite robust
performance in the Railway Maintenance Business.

*Segment sales and operating profit are presented on a pre-adjustment basis.

©TOKYO KEIKI INC. All Rights Reserved

91. Summary of Financial Results for 1Q of FY2024

Status of Orders Received
Orders Received(Million yen)
Marine Systems

Hydraulics andPneumatics

FY2023 1Q

2,540

2,918

FY2024 1Q

3,271

2,848

Order Backlog

YoY Change

Amount
+731

(70)

%
+28.8％-2.4％

FY2023 1Q

4,246

3,713

FY2024 1Q

4,665

3,732

YoY Change

Amount
+419

+19

%

Overview+9.9％

Both orders received and order backlog
increased due to strong demand for new
shipbuilding in the overseas market andmaintenance services.

+0.5％

Both orders received and order backlog
were on par with the same period of theprevious fiscal year due to sluggish orders
in the machine tool and construction
machinery markets, despite steady growthin the overseas market.

Fluid
Measurement
Equipment

1,243

1,413

+170

+13.7％

2,239

2,315

+76

+3.4％

Both orders received and order backlog
increased thanks to strong orders in the
public sector and fire extinguishingequipment markets.

Defense &Communications
Equipment

4,449

5,522

+1,072+24.1％

23,51037,096+13,585+57.8％

Against a backdrop of increased national
defense budgets, both orders received andorder backlog for 1Q reached record highs.
Orders received decreased as orders forrail inspection cars are planned to bereceived in the second half or later in the
Railway Maintenance Business.

Others

Total

1,405

964

(441)

-31.4％

2,377

2,247

(129)

-5.4％

12,55514,018+1,462+11.6％

36,08550,055+13,970+38.7％

Order backlog reached a record high.
©TOKYO KEIKI INC. All Rights Reserved101. Summary of Financial Results for 1Q of FY2024

Condensed Balance Sheet(Million yen)

As of March 31,2024

As of June 30,
2024

YoY Change

AssetsCurrent assets

50,86353,036+2,173

Non-current assets

16,115

16,684+569

Total assets

66,97869,719+2,742

Liabilities
Current liabilities

21,781

21,954+173

Non-current liabilities

7,828

11,097+3,268

Total liabilities

29,60933,050+3,441

Net assets
Shareholders’ equity

32,901

32,113(789)

Accumulated othercomprehensive income

3,948

4,066

+118

Total net assets

37,36936,669(700)

Total liabilities and net assets

66,97869,719+2,742 Current assets
Cash and deposits increased by ¥1,641 million
whereas trade receivables decreased by ¥4,813
million.
Inventories increased by ¥4,643 million mainly
due to higher purchases, stemming from a higher
volume of orders received in the Defense Business.
 Non-current assets
Property, plant and equipment increased by ¥307
million due partly to investment for growth andreplacement of aging facilities.
Meanwhile, investments and other assets
increased by ¥266 million due to the rise in thestock prices.

 Non-current liabilities
Loans were taken on to accommodate thesignificant increase in orders received, resulting in
an increase of ¥3,261 million in long-termborrowings.
 With the equity ratio at 51.9%, we continued tomaintain financial soundness.

©TOKYO KEIKI INC. All Rights Reserved

112. Full-year Forecasts

Contents
1. Summary of Financial Results for 1Q of FY2024

2. Full-year forecasts for FY2024
3. Topics
References
 Business Trends

 Our Businesses©TOKYO KEIKI INC. All Rights Reserved

122. Full-year Forecasts

Status of External Environmental Risks

Occurrences• Increased domestic labor costs impacting
material prices.
Rising prices ofmaterials

Target Business All Businesses• Price hikes for electronic components impacting
material prices.

Response• Continue negotiations with customers to raise
selling prices.

Degreeof ImpactHigh• Reduce procurement costs.

• Global inflation impacting purchase prices.
• Postponement of contracted projects due topressure on client budgets.

 Fluid Measurement
Equipment• Exchange rate fluctuations being unpredictable.  Marine Systems (+)
 Hydraulics andPneumatics(–)

Exchange rate

• Enhance monitoring of contracted projects
and compensate with other projects.

Medium• Planned at ¥140 to the US dollar.

Medium• Beware of potential price increases inpurchased components.

*The case of a weakening yen.

• Economic slowdown impacting sales.
Chinese economy

 Marine Systems• Impact of import and export restrictions arising  Hydraulics andfrom U.S.-China frictions.
Pneumatics• Plan to secure components in advance oforders received from customers and/or switch
to alternative items as necessary.

Medium• Expand sales of high value-added products.
• Expand sales in other regions.

©TOKYO KEIKI INC. All Rights Reserved

13

2. Full-year Forecasts

FY 2024 Full-year Earnings Forecast(Million yen)

FY2023Results

FY2024
Forecast

YoY Change
Amount%Net sales

47,16657,300+10,134+21.5%

Operating profit

2,768

3,560

+792

+28.6%

Ordinary profit

2,990

3,780

+790

+26.4%

Profit attributable toowners of parent

2,277

2,850

+573

+25.2%

Operating profit
margin5.9％

6.2%+0.3%pts¥144.32¥140.00

Exchange rate(against the US dollar)

 Since our businesses are well on
track as planned, we maintain ourearnings forecast announced on
May 10, 2024 and expect anincrease in sales and profit
compared to the previous fiscal year.

Sensitivity to the USD exchange rate (¥1 depreciation / from FY2024 Q2): Operating profit: approx. +¥8 million©TOKYO KEIKI INC. All Rights Reserved

14

2. Full-year Forecasts

Earnings Forecast by Segment(Million yen)

FY2023Results

FY2024
Forecast

YoY Change
AmountOutlook%

Net Sales

11,016

11,400

+384

+3.5%

Operating Profit

1,006

810

(196)

–19.5％Net Sales

11,675

11,500

(175)

–1.5％

273

360

+87

+31.9%

4,772

4,900

+128

+2.7%

733

610

(123)

–16.8％

16,185

25,100+8,915+55.1%

362

1,350

+988

+272.9%

3,517

4,400

+883

+25.1%

502

540

+38

+7.6%

Net Sales

47,16657,300+10,134+21.5%

Operating Profit

2,768

3,560

+792

+28.6%

Marine Systems

Hydraulics andPneumatics

Operating Profit

Fluid
Measurement
Equipment

Net Sales

Defense &Communications
Equipment

Net Sales

Operating Profit

Operating Profit
Net Sales

OthersOperating Profit

Total Demand for new shipbuilding and maintenance services in East Asia is expected
to remain steady.
 R&D to realize autonomous ships continues.
 Demand is expected to recover in the plastics processing machinery market,
especially for large machinery related to automobile facilities. In the machine tool
market, inventory adjustment will continue due to economic stagnation in China.
 The construction machinery market is expected to see a recovery in demand forspecially-equipped vehicles.
 Efforts to optimize selling prices in Japan and overseas and to improve
productivity will continue.

 In the public sector market, demand is expected to remain firm.
 In the fire extinguishing equipment market, demand for gas-cylinder valve
inspections is expected to peak out.
 In the Defense Business, orders for defense equipment are expected to remainstrong on the back of increased defense budget. Sales will be concentrated in thesecond half of the year as planned.
 Steady progress in planned capital investment and acquisition of humanresources will turn the record-high order backlog into sales.

 The Printing Inspection Equipment Business holds promise for updating aging
equipment.
 In the Railway Maintenance Business, the mainstay ultrasonic rail inspection cars
will be sold in 4Q as planned.
 The forecasts for net sales and operating profit by segment are also in line with
the initial forecasts.
©TOKYO KEIKI INC. All Rights Reserved

15

2. Full-year Forecasts

Shareholder Returns
Basic Dividend Policy
Dividends trends

Dividend payout ratio andDOE trends(Yen) To achieve TOKYO KEIKI Vision 2030 and enhance
corporate value, we implement optimal shareholder
returns policy, being mindful of our optimal capital
structure—while prioritizing investment for growthand considering the balance with our financial
foundation.
 For annual dividends, we aim for stable andconsistent shareholder returns, taking account of
past dividend performance.

Dividends
FY under review (FY2024)¥35.00* Record high for two consecutive years since
FY2000Shareholder Benefits Points are awarded based on the number of shares
held by eligible shareholders.
 These points can be exchanged for preferred
products on our dedicated website for shareholders,“TOKYO KEIKI Premium Benefits Club.” For details, please refer to our exclusive website forshareholders:
https://tokyokeiki.premium-yutaiclub.jp/©TOKYO KEIKI INC. All Rights Reserved

16

3. Topics

Contents
1. Summary of Financial Results for 1Q of FY2024

2. Full-year forecasts for FY2024
3. Topics
References
 Business Trends

 Our Businesses©TOKYO KEIKI INC. All Rights Reserved173. Topics

1. TOKYO KEIKI Featured on TV Tokyo’s Unknown Gulliver
The TV Tokyo’s Unknown Gulliver—Excellent Company File featured our company in its broadcast episode on Saturday, July 13, 2024.
The program is an economic documentary that spotlights companies that are well-known to those in the know and have a strong presence in their respective industries.

The program featured our diverse businesses andproducts, focusing on our large-scale businesses ofthe Marine Systems and the Defense &Communications Equipment Businesses. It explained
our proprietary gyro technology and microwave
technology. In addition to the head office, theprogram also covered the Yaita and Nasu plants,
which are the production bases for each of the abovebusinesses, providing a look at the manufacturing
sites we do not usually have the opportunity tointroduce.

Head Office coverage

Yaita Plant: Performance testing of marine
gyrocompasses

Nasu Plant: Manufacturing of microwave
devices

Maritime surveillance radar installed at the
Umihotaru Parking Area in Tokyo Bay

TOKYO WAN Vessel Traffic Service Centerof the Japan Coast Guard,
where our Vessel Trafic Services system isinstalled

Our marine autopilot installed on theferry Bizan of Ocean Trans

Ocean Trans Co., Ltd. and the Japan Coast Guard 3rd
Regional Coast Guard Headquarters cooperated infilming us as examples of how third parties appreciate
our products. Actual scenes of them using our
products were also shown on TV.

©TOKYO KEIKI INC. All Rights Reserved18

3. Topics

2. Showcased our Edge AI System for Image Inspection at Manufacturing World Tokyo
We exhibited the construction environment of our AI image inspection system and other products at Manufacturing World Tokyo, an exhibition of measuring instruments,
inspection equipment, sensors, and other products held at Tokyo Big Sight from June 19 to 21, 2024. The exhibition will be additionally held in Osaka from October 2 to 4.
By participating in these exhibitions, we aim to boost our visibility and attract more partner companies to accelerate the early commercialization of edge AI.
AI image inspection system
The system provides software for image collection tools necessary
for AI training, training tools for easy AI model creation, andtemplates for AI image inspection applications. The edge AI image
inspection system provides all the hardware and softwarenecessary for AI image inspection.

Display

AI camera

Edge AI processing
While general AI processing requires large amounts of image data
to be uploaded to the cloud, edge AI processes data individually atthe edge, i.e., at the user's terminal, thus reducing the load on the
network and guaranteeing real-time performance and data
security until the inference results are obtained. Recently, AI
processing is shifting from the cloud to the edge.

AIknowledge

Distributed processing between cloud and edge

Display judge AI

Simple AI training
program
All the hardware andsoftware necessary
for AI image
inspection included
ImagingAI
Creation

Evalutaion

Cloud

学習
Learning

Templates forimage inspection

Start
Inspection

Training data

Trained model

Edge (users terminal)
Exhibition scenes

Our proprietary image
processor DAPDNA
supports edge AI.

AnalysisAnalysisAnalysis
Inference

Inference
Inference

No reproduction or republication without permission. ©TOKYO KEIKI INC. All Rights Reserved193. Topics

3. Participated Space Industry Collaborative Event Tsukuba x Utsunomiya
Our Executive Officer, Mr. Miyachi, spoke at a collaborative space industry event, Tsukuba x Utsunomiya—Challenges to Space from the Rural Areas, held in Yurakucho, Tokyo on
May 22. This event was organized by Utsunomiya City, Tochigi Prefecture, and Tsukuba Center Inc. to promote the development of the space industry in both Utsunomiya City and
Tsukuba City, Ibaraki Prefecture. It introduced the latest initiatives and research by companies, universities, and research institutes in the space industry, which is expected to growat an accelerating pace.
We participated in the event because we manufacture space-related products at our Nasu Plant in Tochigi Prefecture.

Summary of the Speech
In his speech, he mentioned that our space-related business started with developing
hydraulic pumps for the H-I/H-II rockets launched in 1986 and our recent partnership withstart-up companies. He also talked about our commitment to contributing creating a safe
society as a manufacturer of precision equipment for aviation and space-related applications.
Recent Developments in Our Space Business
FY2020

FY2021

Our microwave amplifiers installed insmall SAR satellites
We supplied microwave amplifiers for the SAR
satellites of Synspective Inc., which develops andoperates small SAR satellites and provides
solutions by analyzing satellite data.

In TOKYO KEIKI Vision 2030, we
set the space business as one ofour growth drivers.

FY2022

Collaboration with Synspective Inc.
We were selected as a partner for a mass
production plant for small SAR satellites
and entered the business of assemblingsmall satellites. In FY2023, a space building
for satellite assembly was completed on
the Nasu Plant site.

FY2023Collaboration with Pale Blue Inc.
We started collaborating with Pale Blue
Inc. in the mass production and assemblyof propulsion systems for small satellites
using water, a safe, non-toxic substance,
as a propellant that Pale Blue isdeveloping.

©️Synspective Inc.
©Pale Blue

Synspective’s small SAR satellite
StriX-αMicrowave amplifierSpace building, Nasu Plant

Water-based Propulsion System

No reproduction or republication without permission. ©TOKYO KEIKI INC. All Rights Reserved20References: Business Trends

Contents
1. Summary of Financial Results for 1Q of FY2024

2. Full-year forecasts for FY2024
3. Topics
References
 Business Trends

 Our Businesses©TOKYO KEIKI INC. All Rights Reserved21

References: Business Trends

Changes in Net Sales and Operating Profit(Million yen)

【Net sales】(Million yen)

【Operating profit】

Full year
1Q(Million yen)

FY2020-1Q

FY2021-1Q

FY2022-1Q

FY2023-1Q

FY2024-1Q

YoY Change
Amount%Net sales

8,624

8,028

8,924

9,417

8,693

(724)

-7.7％

Operating profit

(417)

(517)

(533)

(483)

(479)

+4

－

Ordinary profit

(338)

(404)

(372)

(404)

(407)

(3)

－

Profit attributableto owners of parent

(216)

(250)

(242)

(311)

(258)

+53

－

©TOKYO KEIKI INC. All Rights Reserved22

References: Business Trends

Changes in Net Sales by Segment(Million yen)

Full year
1Q(Million yen)

FY2020-1Q

FY2021-1Q

FY2022-1Q

FY2023-1Q

FY2024-1Q

YoY Change
Amount%Marine Systems

2,232

2,019

2,078

2,458

3,022

+564

+22.9％

Hydraulics & Pneumatics

2,414

2,835

2,819

2,644

2,515

(129)

-4.9％

520

597

583

597

618

+22

+3.7％

3,078

2,126

2,976

3,208

2,077

(1,131)-35.3％

380

450

469

510

460

(50)

-9.8％

Fluid Measurement
Equipment
Defense & Communications
Equipment
Others©TOKYO KEIKI INC. All Rights Reserved23

References: Business Trends

Changes in Operating Profit by Segment(Million yen)

Full year
1Q(Million yen)
Marine Systems
Hydraulics & Pneumatics
Fluid Measurement
Equipment
Defense & Communications
Equipment

Others

FY2020-1Q

FY2021-1Q

FY2022-1Q

FY2023-1Q

YoY Change

FY2024-1Q

Amount

%

69

15

8

180

400

+220

+122.5％

(138)

(19)

(88)

(70)

(39)

+32

－

(130)

(130)

(142)

(132)

(174)

(42)

－

(82)

(266)

(175)

(329)

(472)

(143)

－

(119)

(101)

(111)

(111)

(170)

(59)

－

©TOKYO KEIKI INC. All Rights Reserved24

References: Business Trends

Quarterly Changes in Net Sales(Million yen)

FY2020Full
year

42,081

FY2021

FY2022

FY2023

FY202441,51044,29647,16657,300(Forecast)©TOKYO KEIKI INC. All Rights Reserved25

References: Business Trends

Quarterly Changes in Operating Profit(Million yen)

FY2020

Full
year

1,250

FY2021

FY2022

FY2023

FY2024

1,635

1,312

2,768

3,560
(Forecast)©TOKYO KEIKI INC. All Rights Reserved26

References: Business Trends

Quarterly Changes in Net Sales and Operating Profit by Segment [Marine Systems](Million yen)

Net sales

OperatingprofitFY2020

FY2021

FY2020Net sales

FY2022

FY2021
OperatingprofitNet sales

FY2023

FY2022
OperatingprofitNet sales

FY2024FY2023OperatingprofitNet sales

FY2024
Operatingprofit

1Q

2,232

69

2,019

15

2,078

8

2,458

180

2Q

2,224

157

2,204

162

2,320

158

2,949

391

3Q

2,031

40

2,124

128

2,712

273

2,755

236

4Q

2,035

(20)

2,353

83

2,590

126

2,854

199

Full year

8,522

246

8,700

388

9,700

565

11,016

1,006

Net sales

3,022(Forecast) 11,400

Operating profit

400(Forecast) 810
27©TOKYO KEIKI INC. All Rights ReservedReferences: Business Trends

Quarterly Changes in Net Sales and Operating profit by Segment [Hydraulics and Pneumatics](Million yen)

Net sales

OperatingprofitFY2020

FY2021

FY2020Net sales

FY2022

FY2021
OperatingprofitNet sales

FY2023

FY2022
OperatingprofitNet sales

FY2024FY2023OperatingprofitNet sales

FY2024
Operatingprofit

1Q

2,414

(138)

2,835

(19)

2,819

(88)

2,644

(70)

2Q

2,386

(196)

2,688

(41)

2,867

(52)

2,923

34

3Q

2,655

(145)

3,002

41

2,840

(119)

2,930

114

4Q

2,896

55

3,001

(96)

3,132

(9)

3,178

195

Full year

10,351(424)

11,526(115)

11,658(268)

11,675273

Net sales
2,515(Forecast) 11,500

Operating profit(39)(Forecast) 360
28©TOKYO KEIKI INC. All Rights ReservedReferences: Business Trends

Quarterly Changes in Net Sales and Operating profit by Segment [Fluid Measurement Equipment](Million yen)

Net sales

OperatingprofitFY2020

FY2021

FY2020Net sales

FY2022

FY2021
OperatingprofitNet sales

FY2023

FY2022
OperatingprofitNet sales

FY2023OperatingprofitNet sales

FY2024FY2024

OperatingprofitNet sales

1Q

520

(130)

597

(130)

583

(142)

597

(132)

2Q

669

(46)

854

52

751

(29)

915

8

3Q

935

117

1,057

209

1,056

110

1,178

186

4Q

1,879

706

1,924

784

2,062

588

2,082

671

Full year

4,003

647

4,432

915

4,452

527

4,772

733

Operating profit
618(Forecast) 4,900(174)(Forecast) 610
29©TOKYO KEIKI INC. All Rights ReservedReferences: Business Trends

Quarterly Changes in Net Sales and Operating profit by Segment[Defense & Communications Equipment](Million yen)

Net sales

OperatingprofitFY2020

FY2021

FY2020Net sales

FY2022

FY2021

OperatingprofitNet sales

FY2023

FY2022

OperatingprofitNet sales

FY2024FY2023OperatingprofitNet sales

FY2024

Operatingprofit

1Q

3,078

(82)

2,126

(266)

2,976

(175)

3,208

(329)

2Q

3,967

59

3,874

335

2,630

(301)

2,156

(398)

3Q

4,055

94

3,239

(64)

3,615

(258)

3,725

(136)

4Q

5,181

466

4,645

307

5,544

640

7,096

1,225

Full year

16,281537

13,884312

14,765(94)

16,185362

Net sales
2,077(Forecast) 25,100

Operating profit(472)(Forecast) 1,350
30©TOKYO KEIKI INC. All Rights ReservedReferences: Business Trends

Quarterly Changes in Net Sales and Operating profit by Segment [Others](Million yen)

Net sales

OperatingprofitFY2020

FY2021

FY2020Net sales

FY2022

FY2021
OperatingprofitNet sales

FY2023

FY2022
OperatingprofitNet sales

FY2023OperatingprofitNet sales

FY2024FY2024

Operatingprofit

1Q

380

(119)

450

(101)

469

(111)

510

(111)

2Q

620

12

732

59

1,097

168

840

74

3Q

552

(2)

603

(30)

604

(37)

916

186

4Q

1,372

439

1,181

322

1,548

655

1,251

353

Full year

2,924

330

2,966

250

3,718

675

3,517

502

Net sales

Operating profit
460(Forecast) 4,400(170)(Forecast) 540
31©TOKYO KEIKI INC. All Rights ReservedReferences: Business Trends

Quarterly Changes in Order Backlog(Million yen)

50,05545,512 44,720

OthersDefense & Communications Equipment
Fluid Measurement Equipment
Hydraulics and Pneumatics
Marine Systems
21,482 22,060

22,691

FY202022,42523,80423,031

24,52826,003 26,616

41,34936,08533,01528,136FY2021

29,668FY2022

FY2023

FY2024FY2020

FY2021

FY2022

FY2023

FY2024

1Q

21,48223,804

26,61636,08550,055

2Q

22,06023,031

28,136

41,3493Q

22,691

24,52829,66845,512

4Q

22,42526,00333,01544,720©TOKYO KEIKI INC. All Rights Reserved32

References: Business Trends

Quarterly Changes in Order Backlog by Segment [Marine Systems](Million yen)Orders
Received

Order
Backlog

FY2020

FY2021

FY2020Orders
Received

FY2022

FY2021

Order Backlog

Orders
Received

FY2023

FY2022

Order Backlog

Orders
Received

FY2024FY2023

Order Backlog

Orders
Received

FY2024

Order Backlog

1Q

2,285

2,729

2,489

2,747

2,231

3,502

2,540

4,246

2Q

1,850

2,355

2,380

2,923

2,679

3,860

2,752

4,050

3Q

1,836

2,161

2,386

3,185

2,770

3,919

2,896

4,190

4Q

2,151

2,277

2,516

3,348

2,836

4,164

3,080

4,416

Full year

8,123

2,277

9,772

3,348

10,516

4,164

11,2684,416

Orders
Received

Order Backlog

3,271©TOKYO KEIKI INC. All Rights Reserved

4,665

33

References: Business Trends

Quarterly Changes in Order Backlog by Segment [Hydraulics and Pneumatics](Million yen)Orders
Received

Order
Backlog

FY2020

FY2021

FY2020Orders
Received

FY2022

FY2021

Order Backlog

Orders
Received

FY2023

FY2022

Order Backlog

Orders
Received

FY2024FY2023

Order Backlog

Orders
Received

FY2024

Order Backlog

1Q

2,266

2,400

3,198

3,022

3,105

3,547

2,918

3,713

2Q

2,420

2,434

2,946

3,281

2,778

3,458

2,905

3,695

3Q

2,683

2,462

3,091

3,370

2,806

3,424

2,873

3,638

4Q

3,093

2,659

2,891

3,260

3,147

3,439

2,940

3,399

Full year

10,463

2,659

12,126

3,260

11,836

3,439

11,6353,399

Orders
Received

Order Backlog

2,848©TOKYO KEIKI INC. All Rights Reserved

3,732

34

References: Business Trends

Quarterly Changes in Order Backlog by Segment [Fluid Measurement Equipment](Million yen)Orders
Received

Order
Backlog

FY2020

FY2021

FY2020Orders
Received

FY2022

FY2021

Order Backlog

Orders
Received

FY2023

FY2022

Order Backlog

Orders
Received

FY2024FY2023

Order Backlog

Orders
Received

FY2024

Order Backlog

1Q

682

1,124

1,014

1,432

1,082

1,652

1,243

2,239

2Q

1,188

1,643

1,287

1,864

1,307

2,207

1,272

2,596

3Q

1,435

2,144

1,681

2,488

1,499

2,650

1,288

2,705

4Q

751

1,015

589

1,153

1,004

1,593

898

1,521

Full year

4,055

1,015

4,571

1,153

4,892

1,593

4,700

1,521

Orders
Received

Order Backlog

1,413©TOKYO KEIKI INC. All Rights Reserved

2,315

35

References: Business Trends

Quarterly Changes in Order Backlog by Segment[Defense & Communications Equipment](Million yen)Orders
Received

Order
Backlog

FY2020

FY2021

FY2020Orders
Received

FY2022

FY2021

Order Backlog

Orders
Received

FY2023

FY2022

Order Backlog

Orders
Received

FY2024FY2023

Order Backlog

Orders
Received

FY2024

Order Backlog

1Q

1,698

13,8881,737

15,182

2,297

16,096

4,449

23,5102Q

4,469

14,3892,140

13,4483,260

16,726

7,244

28,5983Q

3,921

14,256

3,563

13,773

4,386

17,497

7,681

32,555

4Q

6,494

15,571

7,647

16,775

10,31622,2698,192

33,651

Full year

16,582

15,571

15,088

16,775

20,25922,26927,56633,651

Orders
Received
5,522

Order Backlog
37,096©TOKYO KEIKI INC. All Rights Reserved36References: Business Trends

Quarterly Changes in Order Backlog by Segment (Others)(Million yen)Orders
Received

Order
Backlog

FY2020

FY2021

FY2020Orders
Received

FY2022

FY2021

Order Backlog

Orders
Received

FY2023

FY2022

Order Backlog

Orders
Received

FY2024FY2023

Order Backlog

Orders
Received

FY2024

Order Backlog

1Q

1,290

1,342

960

1,421

811

1,820

1,405

2,377

2Q

518

1,239

825

1,515

1,139

1,885

860

2,410

3Q

984

1,670

799

1,712

886

2,179

925

2,424

4Q

605

903

936

1,467

936

1,550

569

1,733

Full year

3,398

903

3,520

1,467

3,771

1,550

3,759

1,733

Orders
Received

Order Backlog

964©TOKYO KEIKI INC. All Rights Reserved

2,247

37

References: Business Trends

Quarterly Changes in Order Backlog by Segment (Table)
Million yen

Marine Systems

Hydraulics and Pneumatics

Fluid Measurement Equipment

Defense & Communications
Equipment

Others

FY2020

FY2021

FY2022

FY2023

FY2024

1Q

2,729

2,747

3,502

4,246

2Q

2,355

2,923

3,860

4,050

3Q

2,161

3,185

3,919

4,190

4Q

2,277

3,348

4,164

4,416

1Q

2,400

3,022

3,547

3,713

2Q

2,434

3,281

3,458

3,695

3Q

2,462

3,370

3,424

3,638

4Q

2,659

3,260

3,439

3,399

1Q

1,124

1,432

1,652

2,239

2Q

1,643

1,864

2,207

2,596

3Q

2,144

2,488

2,650

2,705

4Q

1,015

1,153

1,593

1,521

1Q

13,88815,182

16,096

23,5102Q

14,38913,44816,72628,5983Q

14,256

13,773

17,49732,555

4Q

15,571

16,77522,26933,651

1Q

1,342

1,421

1,820

2,377

2Q

1,239

1,515

1,885

2,410

3Q

1,670

1,712

2,179

2,424

4Q

903

1,467

1,550

1,733

4,665

3,732

2,315

37,096

2,247©TOKYO KEIKI INC. All Rights Reserved38

Reference: Our Businesses

Contents
1. Summary of Financial Results for 1Q of FY2024

2. Full-year forecasts for FY2024
3. Topics
References
 Business Trends

 Our Businesses©TOKYO KEIKI INC. All Rights Reserved39

Reference: Our Businesses

Principal Businesses of TOKYO KEIKI GroupTOKYO KEIKI Group’s businesses are divided into four segments and others, and there are 11 businesses within these segments.
Others7.5％【FY2023】

Marine systems
23.4％

Defense &communications
Equipment
34.3％

Net sales
47,166
million yen
Hydraulics andpneumatics
24.8％
Fluid Measurement
Equipment
10.1％

Others17.5％
Defense &communications
Equipment
12.6％

Operating
pofit
2,768
million yen

Segment (4+ Others)
Marine Systems Business Navigational equipment

Hydraulics and Pneumatics
Business Hydraulic and pneumatic equipment

Fluid Measurement Equipment
Business

 Measuring instruments

Defense & Communications
Equipment Business Defense equipment

 Fire extinguishing systems

 Marine traffic equipment
 Inertial sensor and applied equipment

Marine systems
35.0％

 High-frequency application equipment(microwave applied equipment) Communication & control equipment
OthersFluid Measurement
Equipment
25.5％

Business (11)Hydraulics andpneumatics
9.5％

 Inspection systems

 Railway maintenance©TOKYO KEIKI INC. All Rights Reserved40Reference: Our Businesses

History of Creation of Core Technologies
The business of the TOKYO KEIKI Group goes back to the Meiji Era and the development of nautical
instruments. Starting with gyro technology, a number of core technologies have emerged and havedeveloped into current businesses. These core technologies are still a source of innovation by being
shared among businesses when producing new products.
Nautical instruments(pressure gauges)
Domestic production ofvarious ship equipment

Concludeda manufacturing rightagreement with
U.S. company Sperry

Marinegyrocompasses

Core technologies

Navigational equipment
Gyro technology

Communication & control
equipment

Inertial sensor application
technology*Inertial sensor:
Technologies based on
gyro sensors and acceleration
sensors, and combinations thereof.

Concluded a sales rights
contract after World War II
From the achievements ofnautical instruments such ascompasses
Aircraft instrument
Fire detectors andfire extinguishers

Current businessCommunication & control
equipment
Inertial sensor and applied
equipment
Defense equipment
Defense equipment

Marine radar
From performance evaluationsof marine radars
Air traffic control
radar

From the experience inthe aircraft equipment field

Microwave technology

High-frequency
application equipment
Marine traffic equipment
Measuring instruments

Concluded a sales rights contract with a U.S. company as ship equipment
Fire extinguishing systems
Concluded distribution agreements with
an affiliate of Sperry

Ultrasonicflaw detector

Focused on the hydraulic pumps of Vickers(affiliated with Sperry) that had been
incorporated in marine products

Hydraulic equipment

Measuring instruments
Ultrasonic technology

Hydraulics control technology

Developed from image processing technology that had
been researched for product inspection

Railway maintenanceHydraulic and pneumatic
equipment
Inspection systems©TOKYO KEIKI INC. All Rights Reserved

41

Reference: Our Businesses

Navigational
equipment

Marine Systems BusinessContributing to safe navigation and energy-saving ship steering.

Market share
Marinegyrocompasses andautopilots

Navigational
equipment

More than
60% of the global
commercial vessels
marketMarine autopilots
for steering systems,
such as automatic
rudders, etc.

Marine gyrocompasses
that indicate thedirection of a ship’s
heading

Fiber Optic Gyrocompass(FOG) without moving partsfor periodic replacement of
the sensor

Electronic Chart Display andInformation Systems (ECDIS) that
display navigational charts in realtime

More than
80% of the domestic

coastal vessels market.

 Offering a complete lineup of essential marine systems for ships and supplying them globally.
 Pioneer in marine systems as the first in Japan to manufacture marine radars, gyrocompasses, and autopilots.

"DFFAS Project for Realizing Fully
Autonomous Ships""Wind Challenger
Project”

 As a leader in marine gyrocompasses and autopilots, we have also participated in the fully autonomous ship
development project and the next-generation wind-powered vessel project, which contributes to reducing GHG
emissions.
©TOKYO KEIKI INC. All Rights Reserved42Reference: Our Businesses

Hydraulic andpneumatic
Equipment

Hydraulics and Pneumatics BusinessSupporting the manufacturing floor and frontline of infrastructure.

Market share

Approx. 40%

For industrial
machineryLow-noise fixed displacement vanepump widely used in generalindustrial machinery

Solenoid directional valves
controlling velocity andpressure proportionally

Compact power unit widely used as a
hydraulic power source for machine
tools and general industrial machineryof the domestic
market for plastic
injection molding
machines

 Providing energy-efficient and highly controllable hydraulic and pneumatic equipment for injection molding machines, machine tools,
die-casting machines for automobile manufacturing, and other applications.

For
construction
machineryHigh-capacity and quick-response cartridge
valves used in construction machinery

Electric direct control piston pumps forconstruction machinery

Displays for construction machinery Providing hydraulic products and electronic equipment that controls the drive primarily for specially-equipped vehicles such as cranes
and aerial work platforms.

Utilization ofhydrogenenergyHydrogen compressors for hydrogen filling stations

Split module hydrogen compression packages

 Providing hydraulic-drive hydrogen compressors for hydrogen filling stations as well as split-module hydrogen compression packages.
©TOKYO KEIKI INC. All Rights Reserved

43

Reference: Our Businesses

Fluid Measurement Equipment BusinessMeasuring
instruments

Protecting life and human life:
Contributing to the safety of life through water resource management and river disaster prevention.

Market share

Over 60% of theFlow monitoring
Ultrasonic flowmeters formonitoring water supply,
agricultural water, andindustrial water

High-precision ultrasonic flowmetersthat more accurately monitor andcontrol flow enabling effective use ofwater resources without waste.

Microwave level gauges widelyused in food manufacturing
plants and industrial plants inoil tanks, etc.

market for domestic
water and seweragesystems andagricultural water.

 The first pioneer in the world to commercialize ultrasonic flowmeters.
 Our ultrasonic flowmeters are used to monitor flow rates in water and sewerage systems as well as agricultural water pipelines.

Land disasterprevention
Crisis management water gauges
that provide early detection of rising
river levels

Flood-control level gauges that indicate
the risk of urban flood damage caused by
sewage overflowing from manholes

 Systems use microwave level gauges to protect lives from the spate of river and urban flooding.

Fire extinguishingsystems

Protecting against fires:
Gas-based fire extinguishing systems are widely used in facilities that are strictly prohibited from getting wet

Gas-based fire extinguishing systems are widely used inparking garages, museums, art museums, office buildings and factories
with printing machinery, etc., where the use of water or foam-based fire
extinguishers is not suitable.
 Miscellaneous gas-based fire extinguishing systems, developed from our (Japan’s first) inert gas fire extinguisher systems, contributeto safe living.
©TOKYO KEIKI INC. All Rights Reserved

44

Reference: Our Businesses

Defenseequipment

Defense & Communications Equipment BusinessContributing to national defense:
Our strength lies in microwave application technologies and inertial sensor technologies.

Market share◀ Photo courtesy of Satoshi Akatsuka,
IKAROS PUBLICATIONS, LTD.

Radar warning receivers that instantly analyze
radio waves around aircraft and warn pilot of
threat radar signals

Inertial navigation system using
high-precision ring laser gyro,
installed on submarines that cannot
use any external signals such as GPS
for azimuth measurement

Air data computer (ADC) that
calculates the altitude and speed of
the aircraft. This is mounted on Blue
Impulse aircrafts

 Developing, producing, and providing repairs and maintenance for defense avionics equipment and warship navigation systems.

Marine traffic
equipment

Contributing to safe vessel navigation:
Providing maritime monitoring systems that can be called a “marine traffic control tower”.
*1 VTS: Vessel Traffic Services*2 AIS: Automatic Identification System(System for exchanging information
between vessels, as well as between
vessels and navigation aid facilities

Market share

100% share of

VTS systems in Vessel
Traffic Service Centers
nationwide

Maritime surveillance radar
VTS systems responsible for monitoring
installed at the Umihotaru
operations at Vessel Traffic Service Centers
Parking Area in Tokyo Bay
deployed in seven ports across Japan*1 VTS systems including the maritime surveillance radars and AIS*2 information management equipment, which are required formaritime traffic control operations on congested waterways.
 VTS radars to the gulf coasts and rivers in Europe as well.
©TOKYO KEIKI INC. All Rights Reserved45

Reference: Our Businesses

Inertial sensor andapplied equipment

Defense & Communications Equipment BusinessContributing to smart agriculture and disaster prevention systems through combining inertial sensors
and control technologies.
Seismic accelerometer
essential for measuring
seismic magnitude

Straight-line assistance for
agricultural vehicles to reducethe burden of working on the farm

 Promoting smart agriculture with straight-line assistance for agricultural vehicles that integrates gyro technology, inertial sensors, andproprietary software technology.
 Contributing to national disaster prevention with accelerometers used in seismometers for the Japan Meteorological Agency.
High-frequency
applicationequipment

Market share
Our share ofaccelerometers used inseismometers for theJapan Meteorological
Agency isapprox. 80%

Entering into advanced industries through contributing to semiconductor production equipment components andspace business, making full use of microwave application technologies.
Solid-state microwave power supply
used for next-generation
semiconductor production
equipment©️Synspective Inc.

Synthetic aperture radar (SAR) satellitewith the microwave amplifier onboard

 Solid-state microwave power supplies used in semiconductor production equipment to achieve semiconductor miniaturization.
 Providing microwave amplifiers that amplify radar signals emitted from SAR satellites toward the earth’s surface.
Communication &control equipment

Improving broadcasting quality by utilizing technologies such as gyro sensors, accelerometers,
and magnetic azimuth sensors.
Antenna directioning systems which continuously
grasp the position and attitude directions ofhelicopters, control relay antennas towardreceiving stations, and transmit video without
interruption

Camera stabilizer installed onrelay vehicles for marathons andnews helicopters used bybroadcasting stations

 Achieving stable video transmission through attitude control equipment mounted on news helicopters and relay vehicles.
 Ensuring reliable transmission of aerial footage with antenna directioning systems mounted on news helicopters of domestic TV
stations.

Antenna directioning
systems are mounted on

more than 90%
of news helicopters
owned by domestic TV
stations©TOKYO KEIKI INC. All Rights Reserved

46

Reference: Our Businesses

Printing
inspection
equipment

Others (Inspection/Railroad)

Contributing to improving the quality of printing:
Detecting printing defects and material surface problems through high-precision image processing technologies.

Market share
A domestic market
leader for gravure

Print quality inspection device
that ensures print quality bydetecting print defects

Material inspection equipmentthat detects flaws and foreign
matter contaminations in plainmaterials such as films, nonwoven
fabrics, and metal foils

 Achieving high-speed and real-time image processing with in-house developed chips.
 Automatically detecting printing errors and foreign matter contamination at high speed to improve work efficiency and eliminate
material waste.

Railway
maintenanceContributing to safe operations of railways:
Utilizing ultrasonic technology for railway maintenance.

printing inspection for
flexible plastic materials

Flexible plastic materials:
packaging materials
consisting of thin, flexible
materials such as plastic
films, paper, andaluminium foil

Market share
Ultrasonic rail
inspection cars for JR
and private domestic
railwaysover 70%
Ultrasonic rail inspection car that
performs non-destructive inspections
using ultrasonic technology

Track diagnosis support system that
automatically inspects and determines thecondition of multiple types of track materials

Switch profile gauge thatsimultaneously measures rails wear,
crossing wear, and track geometry

 Supporting railway maintenance work with maintenance equipment and maintenance services such as ultrasonic rail flaw detectors
and switch profile gauges.
©TOKYO KEIKI INC. All Rights Reserved

47

Cautionary Note

Cautionary Note on forward-looking information
The data and forecasts disclosed in this document are based on judgments and information available as of thedate of publication. They are subject to change due to various factors and do not guarantee future performanceor the achievement of the stated goals or forecasts. Additionally, the information contained herein may change
in the future without notice.
We assume no responsibility for any damages that may arise as a result of using this document.

For inquiries regarding this document:
TOKYO KEIKI INC. Corporate Communications OfficeTEL:

03-3730-7013

Inquiry form:

https://www.tokyokeiki.jp/e/webform_tokyokeiki_e.html

Web site :https://www.tokyokeiki.jp/e/

The analyst report by Shared Research Inc. is available at the following links:
Japanesehttps://sharedresearch.jp/ja/companies/7721

Englishhttps://sharedresearch.jp/en/companies/7721

Please note that this report may be removed without prior notice.

©TOKYO KEIKI INC. All Rights Reserved

48