YAMAZEN CORPORATION

FY3/24

Supplementary
Materials for
Financial Results

Stock Code: 8051

AGENDA
I. FY3/24 Financial Highlights
II. Earnings Forecast for FY3/25, Medium-Term Management Plan

III. Shareholder Returns and Capital Policy
Appendix

2

AGENDA
I. FY3/24 Financial Highlights
II. Earnings Forecast for FY3/25, Medium-Term Management Plan

III. Shareholder Returns and Capital Policy
Appendix3

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

FY3/23

PercentagechangeYoY

FY3/24

Full Year Plan
(Revised Sept.
13, 2023)

Achievement
Rate

Net sales

527,263506,866-3.9%

500,000

101.4%

Gross profit

78,27974,397

-5.0%

-

-

(Gross profit
margin)

14.8%

14.7%

-0.2ppt--

SG&A expenses

61,71664,509

+4.5%

-

-

Operating profit

16,563

9,887-40.3%

10,00098.9%(Operating profit
margin)

3.1%

2.0%

-1.2ppt

2.0%-

Non-operating
profit/loss

717

548

-23.5%--

Ordinary profit

17,28010,435-39.6%

10,000104.4%

Extraordinary
gain/loss

53

-57

-

-

-

12,5276,488-48.2%

6,700

96.8%

Profit attributable toowners of parent

Net sales decreased -3.9% YoY due to slowing in domestic and overseas capital investment trends. Gross profit decreased 5.0% due to the effect of decreased income, etc. On the other hand, operating profit decreased by 40.3% YoY due to adecrease in gross profit, an increase in depreciation and amortization and other expenses associated with the introductionof the SAP ERP system that is a growth investment, and an increase in activity expenses for aggressive sales promotion.

4

Quarterly Trend in Consolidated Net Sales

FY3/21

FY3/22

FY3/23

FY3/24160,000(Million yen)

140,000
120,000
100,000
80,00060,00040,00020,000
0
Q1

Q2

Q3

Q4

5

Outline of Business Segments(domestic and overseas)

Production equipment

Suppliers

Clients

About 3,000
companies

About 5,000
companies

Users

FY3/24
Machine Tools Division H.Q.
(Machine tools, etc.)

Industrial Solution Division H.Q.

Machine Tool Sellers,
Machinery Tool Trading
Companies, etc.
around Japan(Equipment related to production facilities,
etc.)

Makers of factoryequipment, devices,
tools, etc.

Domestic Machine
79.5 billion yen
Tools

Manufacturers in Japan

Tool & Engineering Division
H.Q.

Engineering andmaintenanceservices(Industrial tools, consumables, etc.)

Export16 overseas
subsidiaries
and65 overseas
offices*

Net sales: 328.6 billion
yen(accounting for 64.8%
of total sales)
Segment profit
8.2 billion yen
Margin: 2.5％
Overseas sales ratio:
24.7％

Overseas Machine
52.7 billion yen
Tools
Domestic Industrial
89.8 billion yen
Solution
Domestic T&E

78.2 billion yen

Overseas Industrial
28.3 billion yen
Solution + T&E

Overseas manufacturers

Home products

Consumer goods (domestic)

Building materials

About 900

About 2,900

companies

companies

House-builders

MakersBuilding Materials Division H.Q.
(Building materials and equipment)
Makers of kitchen, airconditioning
equipment, and otherhousing equipment

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

About 600

About 400

companies

companies

Home Products Division H.Q.
Makers offurniture, home
appliances, etc.

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

FY3/24General customers

Net sales: 172.9 billion
yen(accounting for 34.1％ of
total sales)
Segment profit
7.9 billion yen
Margin: 4.6％

Building
materials
Home
products

71.8 billion yen
101.1 billion yen

DIY home centers, large retailers ofelectrical appliances, massretailers of home appliances,
online shops, TV-based mail-orderfirms, etc.

, etc.

E-commerce/B2C*As of April 30, 2024; figures for the Production
Equipment Business only6

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

FY3/23

Percentage change
YoY

FY3/24

Machine Tools Division

151,214132,284-12.5%

Industrial Solution Division

96,315

93,189-3.2%

Tool & Engineering Division

105,673

103,188-2.4%(Total for Production Equipment
Business)353,203

328,662-6.9%

Building Materials Division

68,031

71,842+5.6%

Home Products Division

100,711

101,119+0.4%(Total for Consumer Goods
Business)

168,742

172,962

+2.5%

Other

5,317

5,241

-1.4%

Total

527,263506,866-3.9%
7

Net Sales Composition by Business (YoY Comparison)
Domestic production equipment: 48.7% → 48.9%
Building Materials Business: 12.9% → 14.2％ (+1.3ppt)(+0.1ppt)
Home Products Business: 19.1% → 19.9% (+0.8ppt)
Overseas production equipment: 18.3% → 16.0% (-2.3ppt)ーーーーーーーーーーーーーーーーーーーーーーーー
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: 32.0% → 34.1% (+2.1ppt)
Production equipment total: 67.0% → 64.8% (-2.1ppt)

FY3/24

15.7%

17.7%

15.4%

16.8%

Domestic Machine Tools
Overseas Industrial Solution + T&E

16.7%

5.6%

Overseas
production
equipment

Domestic
production
equipment

FY3/23

10.4%

15.2%

Domestic Industrial Solution
Building Materials

11.9%

Domestic T&E
Home Products

6.4%

14.2%

19.9%

Building
materials

Home
products

12.9%

19.1%

1.0%

1.0%

Overseas Machine Tools
Other

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 previous year. Meanwhile, sales of infrastructure-related equipment remained strong and the introduction of high-priced,
fully-automated machines in the steel processing industry increased, due to demand from urban redevelopment and therenewal of public infrastructure, as well as the increased 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 previous fiscal 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

Production equipment

Industrial Solutions + T&E Business Total
Domestic

Industrial Solution Business
Tool & Engineering Business
Total

Machine Tools
Overseas Industrial Solutions + T&E Businesses Total

Total
Net sales
Total

Segment profit
Segment profit margin

FY3/2388,498168,338
88,00180,337
256,837
62,71533,65096,365353,203
13,9654.0%

FY3/2479,559168,051
89,817
78,234
247,61152,72428,326
81,051
328,662
8,219
2.5%

PercentagechangeYoY-10.1%
-0.2%
+2.1%
-2.6%
-3.6%

-15.9%-15.8%-15.9%-6.9%-41.1%(-1.5ppt)

9

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

Domestic Industrial Solution

Domestice T&E

80,00070,00060,00050,00040,00030,00020,00010,0000Q1

Q2
Q3
FY3/21

Q4

Q1

Q2
Q3
FY3/22

Q4

Q1

Q2
Q3
FY3/23

Q4

Q1

Q2
Q3
FY3/24

Q4

Q1

Q2
Q3
FY3/24

Q4(Million yen)

30,000Overseas Machine Tools

Overseas Industrial Solution + T&E

Q4

Q425,00020,00015,00010,000
5,000
0

Q1

Q2
Q3
FY3/21Q1

Q2
Q3
FY3/22Q1

Q2
Q3
FY3/23Q4

10

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 toproposals of high-value-added products in response to consumers' desire to reduce spending due to soaring utility costs. The
company is also actively developing the non-residential sector and proposals for facility renovations that combine
environmental products and installation were 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-consumpption, and also
addressing companies’ needs for decarbonization and energy cost reduction.
Home Products Business: Sales of private-brand products remained strong, although there was a negative impact on consumer demand forlifestyle products, due to factors including the demand generated by “staying at home”, refraining from going out andincreased remote working coming to an end, the rise in prices due to the soaring cost of raw materials, electricity and gas, andthe continued depreciation of the yen. The performance of unique home appliances with added value, such as electric fans,circulators, cooking machines and audiovisual equipment, improved from the previous term. Yamazen Bizcom, our own ecommerce site aimed at corporations and sole proprietors that was launched in May 2022, also showed steady growth insales and members.

FY3/23(Million yen)Consumer goods

Building Materials
Division

Net sales

68,031

71,842+5.6%

Segment profit

2,341

2,653

+13.3%

Segment profit margin

3.4%

3.7%

(+0.3ppt)

100,711

101,119+0.4%

Segment profit

4,960

5,274

+6.3%

Segment profit margin

4.9%

5.2%

(+0.3ppt)

168,7427,301
4.3%

172,962
7,927
4.6%

+2.5%

Net sales

Home Products
Division
Total for Consumer
Goods Business

Percentage change
YoY

FY3/24

Net sales
Segment profit
Segment profit margin+8.6%(+0.3ppt)

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
FY3/23

Q4

Q1

Q2
Q3
FY3/24Q4Q2Q3
FY3/23

Q4

Q1

Q2
Q3
FY3/24Q4Home products

35,00030,00025,00020,00015,00010,000
5,000
0

Q1

Q2
Q3
FY3/21

Q4

Q1

Q2
Q3
FY3/22Q4Q1

12

Factors for Changes in Operating Profit(Million yen)

Operating profit

Decrease ingross profit

Increase in SG&A
expenses

3,882

2,793
Operating profit

16,563

Production
equipment
Building
Materials
Home Products-4,395+473+597

Commission paid
Depreciation andamortization
Advertisingexpenses
Travel expenses
Freight

FY3/23

Down 6,676 YoY+1,3599,887+1,028
+427
+426
-495

FY3/2413

Consolidated Total Assets

Assets(End of Mar. 2023)

Liabilities and Total Assets(End of Mar. 2024)(End of Mar. 2024)

Current liabilities

2,385

+28

Current assets

1,401(End of Mar. 2023)

-40

1,441

+12

209

+88

1,237

+60

2,888

2,414
Long-term liabilities: 222

Noncurrent assets andNet assets+32

deferred tax assets

1,326

End of Mar. 2023

Item

End of Mar. 2024

10.6%

ROE

5.1%

(Unit: 100 million yen)

44.6%

*ROE, shareholders’ equity ratio and net assets per share are taken from thefinancial results summary.

503

535
Total assets: 2,949

1,383.65 yen

Shareholders’equity ratio
Net assets per
share

1,480.16 yen

90.3 billion yen

Market cap

119.5 billion yen

14.4 billion yen

Basic operating
cash flow

10.6 billion yen

42.6%*Market capitalization is calculated by multiplying the closing price at the end of the
fiscal year by the number of shares outstanding (excluding treasury shares) on thesame date.
*Basic operating cash flow is calculated by deducting the increase/decrease inworking capital from operating cash flow.
*Amounts less than 100 million yen have been rounded.

14

AGENDA
I. FY3/24 Financial Highlights
II. Earnings Forecast for FY3/25, Medium-Term Management Plan

III. Shareholder Returns and Capital Policy
Appendix15

FY3/25 Full-year Business Plan

(Million yen)

FY3/24
Results

PercentagechangeYoY

FY3/25
Plan

506,866

530,000+4.6%

Operating profit

9,887

12,000+21.4%

Operating profit
margin2.0%

2.3%(+0.3ppt)

Ordinary profit

10,43512,000+15.0%

6,488

7,600

+17.1%Net sales

Profit attributable to owners ofparentAlthough the environment surrounding the Production Equipment business remains
uncertain, domestic and overseas demand for capital investment is expected to recoverin the second half of the fiscal year, and therefore, net sales are projected to increaseby 4.6% YoY and operating income by 21.4% YoY in FY3/25.
16

FY3/25 Full-year Business Plan - Net Sales by Business(Million yen)

FY3/24
Results

FY3/25
Plan

PercentagechangeYoY

Machine Tools Division

132,284

138,000+4.3%

Industrial Solution Division

93,18998,600+5.8%

Tool & Engineering Division

103,188

110,400+7.0%(Total for Production Equipment
Business)

328,662

347,000+5.6%

Building Materials Division

71,84275,000+4.4%Home Products Division

101,119

104,000+2.8%(Total for Consumer Goods
Business)

172,962

179,000

+3.5%

Other

5,241

4,000

-23.7%

Total

506,866

530,000+4.6%
17

FY3/25 Full-year Business Plan for the Production Equipment Business(Million yen)

Production Equipment
Business Total

Net sales plan

Full-year

347,000

Percentagechange YoY

Percentage

Segment profit
plan

+5.6%

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

change YoY

9,200

Each division will brush up
expertise, and provide
solutions to meet the needs inproduction sites, such as“automation and laborsaving” and“decarbonization” at anaccelerated pace.

✓

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

✓

A new business that provides
total support to
manufacturing sites will bestarted✓Outside Japan, we will
geographically expand andrestructure target markets,and enhance borderlessmarketing and initiatives ingrowing industries.

400,000

330,942
27,369300,000

64,942353,203
33,650347,000
328,662
28,32662,71552,72430,00059,000250,000

80,337200,000

150,000

100,000

50,00078,23484,000160,416
Former Industrial Tools& Equipment Business(Domestic)

88,00189,81795,00078,21488,49879,55979,000FY3/22

FY3/23

FY3/24

FY3/25 (plan)0

Domestic Machne Tools
Overseas Machine Tools

Domestic Industrial Solution
Overseas Industrial Solution +T&E

2.7%

✓

(Million yen)

350,000+11.9%

Segment profit
marginDomestic T&E

18

FY3/25 Full-year Business Plan for the Consumer Goods Business(Million yen)

Percentage change
YoY

Net sales plan

Segment profit
plan

Percentagechange YoY

Segment profit
marginBuilding Materials Division

Full-year

75,000

+4.4%

2,700

+1.8%

3.6%

Home Products Division

Full-year

104,000

+2.8%

6,300

+19.4%

6.1%

Consumer Goods Business: 3-year sales trends and full-year forecasts(Million yen)
200,000

175,000

167,036

168,742

172,962

100,711

101,119

179,000■Building Materials Division
Continue proposal-based sales ofhigh-value-added products✓

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

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

150,000

125,000

104,866

104,000

100,000

75,00050,00025,00062,16968,031

71,84275,000■Home Products Division
Develop new products that meet
consumer needs and popularize own
brands✓0

FY3/22

FY3/23

Building materials

FY3/24

FY3/25 (plan)

Expansion of Yamazen Bizcom,
our own e-commerce site aimed
at corporations and sole
proprietors, etc.

Home products

19Medium-Term Management Plan: Disclosed Plan for
Sales/Profit/Management Indicators(Million yen)

FY3/22 results

FY3/23 results(First year of Medium-Term
Management Plan)

FY3/24 results

FY3/25 plan
(Revised May 2024)*For reference
FY3/25 plan
(Announced in the first yearof the Medium-Term
Management Plan)

501,872

527,263506,866

530,000

600,000

Operating profit

17,133

16,563

9,887

12,00021,000Operating profit
margin

3.4%

3.1%

2.0%

2.3%

3.5%

Ordinary profit

17,093

17,28010,43512,00021,000

Profit12,023

12,527

6,488

7,600

14,000FY3/25 plan
(Revised May 2024)*For reference
FY3/25 plan
(Final year of MediumTerm Management
Plan)

Net sales

Indicators(Million yen)

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

FY3/22 results

FY3/23 results(First year of MediumTerm Management
Plan)

FY3/24 results

10.9%

10.6%

5.1％

5.8%

10.0%

12,052

14,427

10,626

12,00018,000

39.9%

42.6%

44.6%

40-45%

40-45%
20

AGENDA
I. FY3/24 Financial Highlights
II. Earnings Forecast for FY3/25, Medium-Term Management Plan

III. Shareholder Returns and Capital Policy
Appendix21

Policy for Improving Corporate Value in the Medium/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 capital

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

22Policy for Improving Corporate Value in the Medium/Long Term (2)Cost of shareholders’ equity assumed to be around 7% (range of 3.39%-8.78% estimated via CAPM as of March
31, 2024)⚫ We will strive to reduce the cost of shareholders’ equity by continuously enhancing dialogue with the market, andpromote investment in business fields with excellent capital efficiency and synergy effects with our existing
distribution business to realize sustainable improvement in profitability and growth and increase corporate value
over the medium to long term.
⚫

ROE/cost of shareholders’ equity(%)

Market cap/basic operating cash flow

Shareholders’ equity
Market cap
Profit attributable to owners of parent
Basic operating cash flow

Cost of capital: 30-year bond
Cost of capital: 10-year bond

14.0

13.8

ROE

(Million yen)

(Million yen)

150,000
12.0

10.9

10.6

120,000

8.6
8.0

8.0
7.4
6.0

7.5
7.2

90,000
7.5

10,000
6.9

7.3
6.7

6.4

21/3

22/3

5.7

5.1

5.5
20/3

5.9

6.2

4.0
19/3

16,00012,00013,000

23/3

4.8
24/3

25/3
(plan)

60,0007,000

30,000

4,000

12/3
13/3
14/3
15/3
16/3
17/3
18/3
19/3
20/3
21/3
22/3
23/3
24/3
25/3 (plan)

10.0

19,00014,37823

Capital Policy Initiatives Implemented in the Current Year
Background
Timing

Corporate Action

Number of shares held

Destination

Reduction ofpolicystockholdings

Marketliquidity

Ratio offloating
sharesEPS

ROE

April 2021

Acquisition of Euro-yen CBs* & treasury shares

3,870,900

Treasury shares

〇

－

－

〇

〇

Sepptember
2021

Acquisition of treasury shares

1,652,900

Treasury shares

〇

－

－

〇

〇

December 2023

Secondary sale of shares held byfinancial institutions

6,711,100

Mainly individual
shareholders

〇

〇

〇

－

－

Total: 12,234,900(12.8%)

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
governancesystem

*An overview is explained in the Appendix

Reduced costofshareholders’equity24

Regarding the secondary sale of shares held by financial
institutions (announced on December 11, 2023)
・Provide to financial institutions, who hold a high percentage of the Company's shares among our trading
Objective

partner shareholders, a fair opportunity to sell and to mitigate the impact on the market price・Realize diversification of shareholder base through fluidization of closely-held shares・Plan to increase the TOPIX inclusion ratio through increasing the ratio of floating sharesissuing company

Offering structure

YAMAZEN CORPORATION
Secondary sale by way of purchase andunderwriting

5,835,800

Secondary sale by way of over-allotment

875,300

Total

Amount soldSeller and number of shares sold

6,711,100

Approx. 8 billion yen
Mizuho Bank

1,890,600

Resona Bank

1,866,900

Mizuho Trust & Banking

774,900

MUFG Bank

694,700

Sumitomo Mitsui Banking Corporation

608,700

Date of resolution to sell

Monday, December 11, 2023

Book building period

Friday, December 15, 2023 - Terms-setting dateTerms-setting period

Monday, December 18 - Thursday, December 21, 2023

Main schedule
Delivery date5 business days after the terms-setting date25

Share price and trading volume
Recent share price level PBR 1.0; Stock price 1,480.16 yen; Volume increased after announcement of dividend
increase on Sepptember 13, 2023

YAMAZEN Share Price and Trading Volume(April 1, 2023 to May 10, 2024)
1,500
May 12
Announcement of
FY3/23 results

Aug. 10
Announcement of 1Q
results and change inreturns policy

Seppt. 13
Notice of revisedearnings forecast andincreased dividend

Nov. 14
Announce
ment of 2Q
results

Dec. 11
Secondary saleof shares

Feb. 13
Announcem
ent of 3Q
results

May 10, 2024
Share price: 1,397
yen
PBR: 0.94

4,000,000

3,500,000

1,400

3,000,000
1,300
2,500,000

1,200
Apr. 3, 2023 Shareprice: 1,033 yen
PBR: 0.75

2,000,000

1,100
1,500,000
1,000
Mar. 31, 2023
No. of shareholders:
5,846

Sep. 30, 2023
No. of shareholders:
6,304

Mar. 31, 2024
No. of shareholders:
7,525

900

800
2023/4/3 2023/5/3

1,000,000

500,00002023/6/3 2023/7/3

2023/8/3

2023/9/3 2023/10/3 2023/11/3 2023/12/3 2024/1/3

Trading volume
売買高Share price株価2024/2/3 2024/3/3

2024/4/3 2024/5/3

26

Establishment of Treasury Share Acquisition Limit (Announced on
May 14, 2024)

・Improve capital efficiency by implementing a flexible capital policy that is responsive to changes in the
Objective

business environment
・Promote the reduction of policy shareholdings
・Realize shareholder returns

Type of Shares to be Acquired:

Common shares

Total Number of Shares that may 6,000,000 shares (upper limit)(Percentage of issued shares (excluding treasury shares) 6.74%)
be Acquired:
Total Amount of Acquisition of
Shares:JPY 5.0 billion (upper limit)

Period of Acquisition:

May 14, 2024 - March 31, 2025

Method of Acquisition:

Purchase on the Tokyo Stock Exchange(Note) Some or all of the orders may not be executed due to market trends or other factors.

27

Cash allocation
A new growth investment phase after the capital enhancement phase

Basic operating cash flow revised to 37.0 billion yen in the revised Medium-Term Management Plan（billion yen）
Medium-Term Management Plan

FY3/23Business
investment

FY3/24

FY3/25

Total

0.79

1.02

-

1.81

3.13

2.05

-

5.18

1.87

1.62

-

3.49

4.45

9.35

17.36

-

-

-

20.0
Basic operating
cash flow

Growthinvestment
DX/Systems
Investment

3-year Total
Approx. 37.0

10.0

Shareholder
Returns

Logistics and otherinvestments

10.0
Dividend
13.5

3.56

*Year-end dividend
Including estimatedcashflow

OpptimumcapitalCash on handand borrowings

16.5

Retained earnings

-

-

28

Change in Shareholder Returns Policy (Disclosed on August 10,2023)
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 levelbased on the progress of the investment plan and a short-term downturn in earnings, we have therefore revised ourshareholder return policy to ensure stable and continuous shareholder returns.

Before change

After change
Consolidated payout ratio of 40%

Target payout ratio of 30%

or dividend on equity (DOE) ratioof 3.5%, whichever is higher
Applicable period: FY3/24 and FY3/25(During the period of the Medium-Term Management Plan “CROSSING YAMAZEN 2024”)

Profit per share

Dividend per share

Dividend per share

(Yen)

(%)

Consolidated payout ratio (%)

1,500.0

(%)

4.5

80.0
68.5

120.0

3.9

4.0

3.8
3.8

70.0

3.5
1,000.0

100.0

3.5

60.0

80.0

40.0
25.5
22.5

32.1 30.633.030.2

40.0

35.1
24.9
28.0

28.4
26.2

13/314/315/316/317/318/319/320/321/322/323/324/3

3.1

3.0

50.0

60.0

0.0

DOE ratio (%)

4.3

140.0

20.0

Net assets per share

(Yen)

3.0

3.0

3.0

2.9
2.6

500.0

2.5

30.0

2.0

1.9

20.0

15.0

15.0

20.0

30.0

30.0

32.5

36.0

30.0

20.0

35.0

40.0

50.0

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

24/3

0.0

1.5

29

Shareholder Returns➢➢

FY3/24: Paid an interim dividend of 20 yen per share and a year-end dividend of 30 yen per share, for an annual dividend of 50 yen per share.
FY3/25: Plan to pay an interim dividend of 20 yen per share and a year-end dividend of 31 yen per share, for an annual dividend of 51 yen per share.

(Yen)

(%)

160.00
Profit per share (yen)140.0080.0

68.5

Consolidated payout ratio (%)

59.6

70.0

120.0060.0

100.00

50.0

80.00

30.6

33.0

30.2

28.0

35.0
24.9

60.00

26.2

40.0

28.4

30.0

40.00
20.00

20.0
98.01

90.82

107.79128.80

85.60

80.25

133.74141.00

73.04

85.54

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

FY3/25

0.00

10.0
0.0

Plan

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

FY3/25 planMid-year

13.0

15.0

16.0

10.0

10.0

20.0

20.0

20.0

End of year

*19.5

*21.0

14.0

10.0

*25.0

20.0

30.0

31.0

Annual

*32.5

*36.0

30.0

20.0

35.0

40.0

50.0

51.0

Payout ratio (%)

30.2

28.0

35.0

24.9

26.2

28.4

68.5

59.6

Dividend on equity ratio (DOE) (%)

3.8

3.8

3.0

1.9

2.9

3.0

3.5

3.5

Dividend paid (Million yen)

3,074

3,405

2,837

1,891

3,115

3,560

4,451

4,540

Amount of treasury stock acquired (Million
yen)

733

-

-

-

5,999

-

-

5,000

Total return ratio (%)

37.3

28.0

35.0

24.9

75.8

28.4

68.5

125.5

Dividend per share (yen)*Includes special dividends and commemorative dividends

30Appendix

31

[Reference] List of Full-year Business Plans for FY3/25(Million yen)Segment

Production
equipment

Business

FY3/24 results

Domestic Machine Tools

Net sales

Domestic Industrial Solutions

Net sales

Domestic T&E

Net sales

Domestic production equipment total

Net sales

Overseas Machine Tools

Net sales

Overseas Industrial Solutions + T&E

Net sales

Overseas production equipment total

Net sales

Production equipment total

Net sales
Segment profit
Segment profit margin

Building materials

Net sales
Segment profit
Segment profit margin

Home products
Consumergoods

Net sales
Segment profit
Segment profit margin

Consumer goods total

Net sales
Segment profit
Segment profit margin
Net sales

Other

Segment profit
Segment profit margin
Net sales

Consolidated

Operating profit
Operating profit margin

79,55989,817
78,234
247,61152,72428,326
81,051
328,662
8,219
2.5%
71,842
2,653
3.7%
101,119
5,274
5.2%
172,962
7,927
4.6%
5,241
-6,259506,866
9,887
2.0%

FY3/25 plan

79,00095,00084,000258,000
59,00030,00089,000347,000
9,200
2.7%
75,0002,700
3.6%
104,000
6,300
6.1%
179,000
9,000
5.0%
4,000
-6,200－530,000
12,0002.3%

Percentage change

-0.7%
+5.8%
+7.4%
+4.2%
+11.9%
+5.9%
+9.8%
+5.6%
+11.9%(+0.2ppt)

+4.4%
+1.8%
(-0.1ppt)+2.8%+19.4%(+0.8ppt)+3.5%+13.5%(+0.4ppt)- 23.7%－－+4.6%+21.4%(+0.3ppt)

32

[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’33

[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

Secondary parts
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 between changes in
automobile production volume and theoccurrence of demand from SME
manufacturers, who are our main end users

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

34

[FAQ] Euro-yen Convertible Bonds Expiring in 2026
Issue price10.0 billion yen

Terms-setting
date

April 14, 2021

Redempption date

April 30, 2026

Interest rate

0.00% (zero coupon)

Closing price on
resolution date

1,050 yen

Conversion price

Initial: 1,292 yen / Current: 1,218.1 yen

Conversion
restriction clauses(i) Until April 30, 2024: Conversion price x 150(ii) May 1, 2024 to January 30, 2026: Conversion price x 130

Higher than normal 150% conversion restriction clauses adoppted for the first three years in order to limit dilution

2,000
End of quarter

Conversion possible

Conversion price x 150%

1,800

Can be converted
in thefollowing quarter

Final 20 trading days of the quarter
Conversion price x 150% (/130%) or more

1,600

Conversion restricted

Apr. 30, 2024

Conversion price x 130%

1,400
Initial conversion price: 1,292 yen

1,200

Current conversion price: 1218.1 yen

Jan. 30, 2026

1,000

800
2021/4/1 2021/10/1 2022/4/1 2022/10/1 2023/4/1 2023/10/1 2024/4/1

October 1, 2024

April 1, 2025

October 1, 2025

April 1, 2026

35

[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 assumpptions 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 to various factors. Factors that may affectfuture 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.”36