Summary ofConsolidated Financial Results
for the First Quarter of YearEnding March 31, 2025 (1Q FY2025)
Aug 23, 2024

Imasen Electric Industrial Co., Ltd.
Tokyo Stock Exchange Standard Market, Nagoya Stock Exchange Premier Market
Stock code: 7266
©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

1

Introduction
Kenichi Hasegawa

President and Representative Director
Date of birth April 10,1959(age 65)【Career History】
June 2000 Engineering Sales Division, Motorcycle Engineering
Department General Manager of TS TECH Co., Ltd.
April 2008 Director and President of TRI-CON INDUSTRIES, LTD.
April 2012 Director and President of TS TECH DO BRASIL LTDA.
April 2014 Executive Officer of TS TECH Co., Ltd.
April 2016 Director and Chairman of TS TECH DEUTSCHLAND GmbH
June 2016 Director of TS TECH Co., Ltd.
June 2017 Managing Director of TS TECH Co., Ltd.
April 2020 Managing Director, Sales and Purchasing Division
General Manager of TS TECH Co., Ltd.
June 2020 Senior Managing Director (Representative Director)of TS TECH Co., Ltd.
June 2024 President and Representative Directorof Imasen Electric Industrial Co., Ltd.
©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

2

I.

Summary of Consolidated Financial Results for
1Q FY2025

II. Medium- and long-term management policy©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

3

I.

Summary of Consolidated Financial Results for
1Q FY2025

II. Medium- and long-term management policy©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

4

Summary of Consolidated Financial Results for 1Q FY2025(Unit: Million yen)

1Q FY2024
Result1Q FY2025
Plan *1

1Q FY2025
ResultDifference

24,12723,28523,319

-808

-3.4%

Operating profit

20

-631

-245

-265

-

Ordinary profit

323

-255

360

+36

11.4%

Profitattributable toowners of parent

-908

1,359

2,156 *2

+3,065-Net sales

Change*1 The planned figures are incorporated into the performance forecasts disclosed in May 2024.
*2 Profit attributable to owners of parent includes a gain on sales of investment securities of 2,990 million yen.

1Q FY2025
average
Exchangerates

1Q FY2025
average

Difference

ChangeUSD

132.42 yen

148.63 yen+16.21 yen+12.2%

CNY

19.35 yen

20.63 yen

+1.28 yen

+6.6%

THB

3.91 yen

4.17 yen+0.26 yen

+6.6%

©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

5

1Q FY2025 Operating Profit (Year on Year)（ Foreign exchange impact ＋1,390）（ Production fluctuations -2,198）-808

Net sales:24,127

Unit: Million yen

Net sales : 23,319-265

1Q FY2024

1Q FY2025

-681

20
+361

+30
Other

+184

-245

-159

Economic
Company
Production
fluctuations
structurefluctuations/structural changes ※Productivity improvement

Foreignexchange
impactin North America

Although there was improvement due to improvements in the company's structure andthe weak yen, profits decreased due to reduced production in China.
©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

6

1Q FY2025 Operating Profit (Disclosed Forecasts vs. Results)（ Foreign exchange impact ＋474）（ Production fluctuations -440））+34

Net sales :23,285

Unit: Million yen

Net sales:23,319+386

Result

Plan*

+123
+215

Economicfluctuations

＋66

-631

Production
fluctuations/structural changes

-245

-18
Foreignexchange
impactCompany
structure* Containing expenses on a non-consolidated basis,
reviewing timing, etc.

Upside due to improved domestic structure and exchange rate effects.
©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

7

1Q FY2025 Results by Business Segment[ Year on Year ]（Unit: Million yen）

Seat and Electrical Equipment BusinessNet sales
19,491(17,539)(Net Sales excluding
the impact offoreign exchange)

1Q FY2024

-601
-3.2％
1Q FY2025

Operating profit

Net sales-689（-3.5％）

Although there was an upside impact fromthe weak yen, production in China
dropped significantly, resulting in a
decline in revenue.

18,802-260-1.3％Electronics Business

3,482

3,553

-341（ー）(3,356)

Although we made efforts to secure
profits through such measures asimproving productivity in North America,
losses increased due to a decline inproduction in China.

Exchange rate impact
Revenue
Operating profit+1,263
+2

371
10.6％

291
8.2%

1Q FY2024

1Q FY2025

Other BusinessNet sales

1,083
-11
-1.1％
1Q FY2024

1,033
-16
-1.6％
1Q FY2025

Although production decreased, The
weak yen led to an increase in exchange
rate effects, resulting in a roughly flat
performance.
Operating profit+79（27.2％）

In response to the decline in production,
we have been able to reduce expenses
and improve costs, resulting inincreased profits.

Exchange rate impact
Revenue
Operating profit

+126
+11

Sales Breakdown by Business-49（-4.6％）

Revenues decreased due to delays inshipments of industrial cameras.
Operating profit-70（-2.0％）

Other
Businesses
4.5%

Electronics
Business
14.7%

Other
Businesses
4.4%

Electronics Business
14.9%

-5（ー）

Although we made efforts to curb
development costs in new businessareas, losses expanded due to factors
such as the impact of reduced sales in
the industrial camera field.

Exchange rate impact
Revenue
Operating profit

00©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

24,12723,319Seat and Electrical
Equipment Business
80.8%

Seat and Electrical
Equipment Business
80.6%

1Q FY2024

1Q FY2025

8

1Q FY2025 Results by Regional Segment[ Year on Year ]（Unit: Million yen）

Japan
9,040

Net sales

8,664North America
Net sales-376（-4.2％）

Sales decreased due to a decrease inproduction in the seat business.

7,926

In addition to increased production,
revenue increased due to the impact of
the weak yen.

6,826
(7,060)Operating profit

118
1.3％

1Q FY2024

-179
-2.1％
1Q FY2025-297（－）

Despite the positive impact of exchange
rates, profits decreased due to reduced
production in the seat business andincreased labor and other expenses
resulting from strengthened
management systems.

Exchange rate impact
Revenue
Operating profit

00(Net Sales excluding
the impact offoreign exchange)-738-10.8%
1Q FY2024

-72
-0.9％
1Q FY2025

Asia
Net sales

8,260

473
5.7％

1Q FY2024

Losses were reduced due to theelimination of labor cost losses causedby employment issues in the previous
fiscal year, as well as cost reduction
activities.

Exchange rate impact
Revenue
Operating profit

+866
+11

-1,532（-18.6％）

Sales declined due to a decline inproduction caused by sluggish sales ofJapanese cars in China.

(6,205)

Operating profit

1Q FY2025+666（－）

Operating profit

Sales Breakdown by Region

6,728

-44
-0.7％

+1,100（+16.1％）-518（－）In response to the decline in sales in
China, we are working to improve ourbusiness structure through measures
such as voluntary retirement, but the
impact of the decline in sales was
significant, resulting in a loss.

Exchange rate impact
Revenue
Operating profit

+523
+3

©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

Japan
37.5%

Asia
34.2%

24,127

Japan
37.2%

Asia
28.9%

23,319North America
28.3%

North
America
34.0%

1Q FY2024

1Q FY2025

9

1Q FY2025 Capital Investment and Depreciation Expense（ Unit: Million yen ）Capital investment
1Q
FY20241Q
FY2025Difference

Japan

443

202

-241

North
America

83

89

6

Asia

175

597

422

Total

701

888

187

＜Major investments during the period＞

・ JapanDecreased compared to investment indies associated with launching new
vehicle models in the previous fiscal year.
・ AsiaIncrease due to investments inlaunching new vehicle models in India,
expanding production capacity in China,
and updating dies in Thailand.

Depreciation
1Q
FY20241Q
FY2025Difference

Japan

302

342

40

North
America

113

116

3

Asia

289

280

-9

Total

704

738

34

©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

・JapanIncreased due to launch of new models in
the previous fiscal year.

10Review of 1Q FY2025■Seat and Electrical Equipment BusinessPriority strategy: Promote joint efforts with TS Tech
In the India business, land leased
for construction of the new TS
India Plant in response toincreased orders from Maruti
Suzuki.

As orders are expected to increase, we will
maximize mutual cooperation and expand andreview the layout of IMIP's existing plant.

TS TECH SUN RAJASTHAN PRIVATELIMITED [TSSR]
Imasen Manufacturing India Private
Limited [IMIP]
Advantages to both TSSR and IMIP
 Reduced parts logistics costs (no need fortruck transport)
 Reduced transport/packaging personnel
 Reduced parts inventories
 Effective use of created space, etc.

IMIP
IMIP
plant
Plant

Plannedsite ofnewplant

Building a new plantat the IMIP site

Existing
TSSR
Plant

Using the vacant space at IMIP
Creating benefits through joint
activities.
Maps Data:Google map

Highly efficient production utilizing the partnership with TS Tech Co., Ltd..
©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

11

Review of 1Q FY2025■Seat and Electrical Equipment Business[Optimizing personnel throughvoluntary retirement program]
FY2024 154 applications.

Completed in FY2024

Japan head office

Improve the age distribution;
promote a younger workforce.

75 applications(ongoing)
Guangzhou Plant
Wuhan Plant

FY2025 ongoing
including Wuhan

Guangzhou about 150,
Wuhan about 30.
Promoting automation and labor savings inorder to adopt unstable production volume.

[Business Consolidation in
North America]
Ohio Plant

Tennessee plant Mexico Plant

Production capacity of Mexico Plant currently
being consolidated at the Ohio Plant
Mexico Plant to become North American
sales site for electronic products.

Ohio Plant

Tennessee Plant

Ohio Plant
Decided to close Tennessee plant at
the end of 2024.
North American seat adjuster production
will be consolidated and centralized at
Ohio plant to improve efficiency.

Accelerating Lean Manufacturing.
©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

12

Review of 1Q FY2025

Priority strategy: Strengthen financial structures■Promote reductions in cross-shareholdings.
Promote reductions in crossshareholdings as a basic policy,
continuing maintain pace of sales .
＜1Q FY2025 Result＞
Sale Details:
One issue of listed securities
Scheduled sale date : May 13, 2024
Sales proceeds : 2,900 million yen＜ Reference:
Additional sales planned ＞
Sale Details : Two listed securities
Scheduled sale date :August to December 2024
Sales proceeds (est.) : 598million yen
Strengthen financial structures for future investments while continuing to reduce crossshareholdings.
©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

13

Review of 1Q FY2025

Increase customer satisfaction
Received a letter of appreciationfrom Nissan Motor Co., Ltd.
For excellent quality.

We received a letter of appreciationfrom JAXA.
Our consolidated subsidiary,
Toyo Aviation Electronics Co.,
Ltd., received a letter ofappreciation from JAXA (Japan
Aerospace Exploration Agency)
for its contribution to thesuccessful launch of thesecond test vehicle of the H3rocket, in recognition of its
cooperation in the developmentof the rocket.

The rear combination lamps
manufactured and delivered by
the Okayama Plant wererecognized for their excellent
quality throughout the year.

[Our H3 rocket-related products]
Network switch boxes installed on the rocket,
Umbilical cables and carrier plates connecting the rocket to thelaunch site,
Ground support equipment for the rocket (including installation of
Tanegashima launch site equipment)

The entire group strives to meet customer expectations.
©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

14

Forecasts of Consolidated Financial Results for FY2025

Unit:
million yen

First half
Initial plan

First half
Revised plan

Difference

Net sales

44,70046,000+1,300+ 2.9%

93,500Operatingprofit-1,080

-500

+580

-

100

Ordinary
profit

-740

100

+840

-

300

ProfitAttributable toowners of parent

750

2,000

+1,250+166.7%1,400

Initial plan

Revised Plan
(August onwards)

Exchangerate(average)

USD

145.00 yen

145.00 yen

CNY

20.00 yen

20.00 yen

THB

4.00 yen

4.00 yen*Full-year
plan

ChangeFor the first half of the year, we have revised our earnings forecast
as above, taking into account fluctuations up to the first quarter aswell as the expected additional gain on sales of investment
securities.
*Regarding the full-year business forecast for the fiscal year
ending March 2025, we have maintained the previously announced
forecast figures in light of the following factors:
1. Anticipated foreign exchange losses due to rapid exchange
rate fluctuations
2. Uncertainty in the Chinese automobile market©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

15

I.

Summary of Consolidated Financial Results for
1Q FY2025

II. Medium- and long-term management policy©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

16

Medium- and long-term
management policy
1. Review of Medium- and Long-term Management Plan 2029
Creating the futureof mobile space

Phase1
2. New medium-term management plan
(1) Correcting business policy(2) Redefining long-term goals(3) Eight key measures for the medium term

©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

171. Review of Medium- and Long-term Management Plan 2029 Phase1②Priority Measures①Performance

Implementing key measures tostrengthen our business structure(Sales/Operating Profit)(Unit: Million yen)Internal factors

99,73099,73085,15514▲ 70
FY202221年度▲ 770
FY2023
FY202422年度
23年度③Product Orders
Classification
Seat parts

Electronic parts

Evalu
ation

PolicyMeasures

Seat andElectrical
Equipment・Strengthening
customer
relationships
・Strengthening costcompetitiveness・Collaborative activities with TS-TECH (new order in India)
・Reorganization of domestic factories (consolidated into theGifu Plant)
・Optimizing overseas bases(North America turns a profit, decision to close
Tennessee)

Electronics

・Strengthening thedevelopment system
・New Product Launch・New ESU orders
・Introduction of a mixed-product production line
・MIED is established

New
Businesses

・Strengthening
development andinvestment

・Collaborative research with domestic and international
universities
・Agreements with local governments

Management

・Promotion of ESG
management
・Work style reform

・Unification of group financial management
・Review of work style and personnel system
・Investment in new products and business growth

Improved business structure toensure operating profit

External factors

・Special steel supply problems
・Sudden changes in customer production
・Supply and demand disruptions due to disasters and political instability

Received orders for a variety of products aimed at the electrification of automobiles

Products on order
Fr MNL Rail / MNL Rec / MNL Brake
2nd MNL Rail / MNL Rec , Fr PWR Device+
Frame structural parts
Dash ESU, Rear ESU, Backup power supply
Inverter©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

Changes brought about
by electrification

・Incorporating
peripheral parts forexisting products
・Increasing thebasic unit per unit18

2. (1) Correcting business policy

1

Formulate a three-year medium-term business plan to achieve long-term goals(improve planning accuracy)
・Redefine long-term goals for 2029 and formulate a three-year
mid-term management plan starting from this fiscal year as amilestone for achieving those goals.

2Creating the futureof mobile space

3

Focus on two main businesses (strengthening profitability)
・Shift from a three-pronged business strategy to focus on the two main areas of
the automotive parts business (Seat and Electrical Equipment, Electronics)
to strengthen profitability
・With regard to healthcare, continue research into ergonomics that will lead toa longer healthy lifespan through walking and maintaining health while riding
in a vehicle

Towards the realization of management that takes into account capital costs andstock prices
・Introduction of ROE target value
After grasping the company's capital cost, the company aims to achieve an ROE thatexceeds the cost of shareholders' equity and is at or above the industry standard forautomotive parts, thereby further increasing corporate value.

©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

19

2.(2) Redefining long-term goals
FY2030 Long-term Goals
Goals

Response Policy<Strengthening sales structure to secure new orders globally>

Sales

150

billion yen

・Seat : Sales increase following TS-TECH sales expansion
Strengthening sales structure and independently expanding sales
targeting foreign companies
・Electronics : Increase sales by strengthening relationships withkey customers
Actively expand sales to new customers
・New Products : Develop new products by combining the technologies ownedby the group(To grow further from 150 billion yen)(billion yen)<Strengthen earning power and further improve the company's financial position>

Operatingprofit6.0%

・Management decisions that don't miss the opportunity Sales
・Focus on two main businesses
・Utilize external resources, including alliances
93
Other
・Eliminate strain, waste, and loss
5

150

8
63

15
Electronics<Achieving industry standards>

ROE

7.0%

or more・Management with an awareness of capital efficiency
・Stable shareholder returns according tobusiness performance
Seat and Electrical Equipment©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

Operating Profit
6.0%
Margin79
73

0.1%
FY2025Disclosure
Plan

FY2030target20

2.(2) Redefining long-term goals
Long-term goals and new medium-term management plan
FY2025

FY2027

FY2030
FY2030 target

Backcasting
FY2025-FY2027
medium-term
management plan

Sales

150

billion yen

Operatingprofit

6.0%

ROE

7.0%

or moreEight priority measures
Speed ofmanagement

1) Accelerating decision-making and promoting the delegation of authority
2) Strengthening sales functions

Offense

Revenue3) Strengthening competitiveness beyond that of mega-suppliers4) Strengthening profits through restructuring in North America and China
5) Improve material cost ratios by restructuring procurement structure

Defense

Synergy6) Reconstruction of earning power
CapitalEfficiency

7) Capital policy that takes into account ROE and capital costs

Revenue

8) Future product development through group synergy©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

*Specific details will be explained at the second quarter financial
results briefing.

21

2.(3) Eight priority measures(1 of 5)
Priority Measures 1 (Speed of management)

Accelerating decision-making and promoting the delegationof authority
Reviewing the decision-making process
・Cut the number of meetings in half・Cut the time from planning/drafting todecision-making in half
Reviewing meeting structures to clearly
differentiate between responsibilities andauthority
・Delegation of authority to decision-making bodies
・Review of hierarchy of management-related
meetings(Partial transfer of authority of the board of directors)©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

Board of directors

Management Council(provisional)

Headquarters Directors
Meeting (provisional)
Business
divisionsGroupcompanies22

2.(3) Eight priority measures(2 of 5)
Priority Measures 2 (Offense)

Strengthening sales functions

Information gathering using
TS-TECH bases

・Strengthen sales systems at headquarters andCustomergroup bases
・Centralize information management, provide
Supplier
appropriate instructions, and allocate resources(Germany)
at headquarters
・Gather information using TS-TECH bases(India)・Our own sales and feedback to TS-TECH
・Joint sales beyond the boundaries of sheet/electronics
businesses

Information
gathering

Financial
Institutions
Consulting(Guangzhou)(Detroit)

Priority Measures 3 (Offense)

Strengthening competitiveness beyond that of mega-suppliers・Create products that capture the future of mobility
・Establish cost competitiveness to beat mega suppliers・Improve and speed up development efficiency by utilizing external resources,
including alliances
・Digitalization through the use of AI and IoT in production and quality
・Build a smart factory by introducing next-generation ERP©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

23

2.(3) Eight priority measures(3 of 5)
Priority Measures 4 (Offense/Defense)
Strengthening profits through restructuring in North America and China・Strengthening competitiveness by establishingan integrated production system for pressing,
Wuhan
Ohio
welding, painting, and assembly*The decision was made・Acquiring new orders through active sales
Guangzhou
to consolidate North
America into one base.
activities
Integrated production
・Closing Tennessee plant and consolidating into
Pressing
Welding
Painting
Assemblya single base in North America

Priority Measures 5 (Defense)

Improve material cost ratios by restructuring procurement structure
・Plan and execute competitive production/procurementthat is not tied to existing production/procurement
infrastructure
・Utilize local suppliers

IMASENIMASEN

Simplifying yoursupply chain©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

24

2.(3) Eight priority measures(4 of 5)
Priority Measures 6 (Defense)

Reconstruction of earning power
・Eliminating unnecessary, wasteful, and lost costs
・Pursuing theoretical costs in product costs
・Minimizing management costs

Theoretical
Cost

ActualCost

Improving the gap

Priority Measures 7 (Defense)

Capital policy that takes into account ROE and capital costs
・Improving the gap・Strengthening sales anddevelopment, investing in future growth・Pursuing capital efficiency・Returning profits tostakeholders*Details will be announced in conjunction
with the second quarter financial results©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

Create value that exceeds thecost of capital
Results

ROE > Cost of capital

Investment

Earn
キャッシュ
Cash
の獲得

Allocation

Cash
Allocation

Optimizing capital structure25

2.(3) Eight priority measures(5 of 5)
Priority Measures 8 (Synergy)

Future product development through group synergy
・Establish an advanced development department
with an eye to the future・Maximize synergy between the technologies
owned by our group to establish products andservices that will contribute to the future

Owned technologies/uniqueness(Maximizing synergies)

Camera and image
processing technology

Electronic Components
and Control Technology

Wire harness and transmission
technology

Mechanical parts anddrive technology©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

Small mobility anddrive technology

26

[Reference] Response to the stock market
Dividend forecast[Dividend Policy]
While maintaining sustainable growth, we aim to provide stable and continuous
profit returns to shareholders while strengthening our financial position andmanagement foundation.
(YEN) 40

32
26

30
20
10
0

Period-end
Interim

16

16

10
16

15
10
5

FY2019FY2020

FY2021

15

15

5

7.5

10

7.5

6

7.5

FY2022

FY2023

FY2024FY2025(Forecasts)

12
6

15
7.5

If we are able to achieve full-year results above our plan, we will consider
27©IMASEN ELECTRIC INDUSTRIAL
CO.,LTD.
rights reserved.
revising
theAlldividend
amount for this fiscal year.

[Reference] Future plans
IR Calendar

Sep 6 (Fri)Sep 7 (Sat)

Nagoya Stock Exchange IR Expo Exhibit

Nov 8 (Fri)FY2025 2Q Financial Results Announcement

Nov14(Thu)FY2025 2Q Financial Results Briefing@Nagoya Trade & Industry Center "Fukiage Hall“@ The Securities Analysts Association of Japan
Conference Room (Tokyo)

Specific details of the 2024-2026
medium-term management plan
will be explained.
©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

28

Challenge by New Imasen• Imasen Electric Industrial Co., Ltd. reserves all rights to the contents of thisdocument. Unauthorized republication or reuse is strictly prohibited.
• Forecasts of business results and other forward-looking statements in thisdocument represent estimates and projections based on information available to
the Company at the time of publication. They entail risks and uncertainties.
• Actual results may differ from projections for various reasons.

©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved.

○Address any IR-related inquiries to:
Attn.: IR personnel, Business Planning
Section, Global Management Business
Unit, Imasen Electric Industrial Co., Ltd.
Tel: +81 568-67-1517
URL: https://www.imasen.co.jp/contact/29