YAMAZEN CORPORATION

FY3/24

Financial
Results Briefing
May 23, 2024
Koji Kishida
President and CEO

Stock Code: 8051

AGENDA
I. Outline and Our Business Models
II. FY3/24 Financial Highlights
III. Earnings Forecast for FY3/25
IV. Medium-Term Management Plan “CROSSING YAMAZEN 2024”
V. Shareholder Returns and Capital Policy
Appendix

2

AGENDA
I. Outline and Our Business Models
II. FY3/24 Financial Highlights
III. Earnings Forecast for FY3/25
IV. Medium-Term Management Plan “CROSSING YAMAZEN 2024”
V. Shareholder Returns and Capital Policy
Appendix3Management Philosophy

Management of Fostering
Personnel
To make active use of personnel, and to foster
independent and virtuous employees

Management of Breaking
Through
To challenge, innovate and create

Management of Trust
To respond to the needs and expectations ofsociety and contribute to themFounder Takeo Yamamoto
Founded Yamazen Tool Manufacturing & Sales
Co., Ltd. in May 1947. Expanded the company’sbusiness domain from machinery tools to machine
tools, housing equipment, and home products. The
company's rapid growth through unique management
attracted attention and became the model for the novel
Doterai Yatsu. He died in 1991 (aged 70).

4Outline of Business Segments(domestic and overseas)

Production equipment

Suppliers

Distributors

About 3,000
companies

About 5,000
companies

Users

FY3/24
Machine Tools Business(Domestic)(Machine tools, etc.)

Machine tool sellers,
cutting tool trading
companies, etc.
throughout Japan

Industrial Solution Business(Domestic)
Manufacturers offactory equipment,
devices, tools, etc.

Domestic Machine
79.5 billion yen
Tools

Manufacturer customers
in Japan(Equipment related to production facilities,
etc.)
Engineering andmaintenanceservices

Tools & Engineering Business(Domestic)(Industrial tools, consumables, etc.)

Export16 overseas
subsidiaries
and65 businesslocations*Home products

Consumer goods (domestic)

Building materials

About 900

About 2,900

companies

companies

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

Manufacturer customers
overseas

House-builders

MakersBuilding Materials Business(Building materials and equipment)
Manufacturers ofkitchen equipment, airconditioning
equipment, and otherhousing equipment

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

About 600

About 400

companies

companies

Home Products BusinessContract
manufacturers 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, generalmerchandise stores, online shops,
TV-based mail-order firms, etc.

, etc.

E-commerce/B2C*As of April 30, 2024; figures for the Production
Equipment Business only5

Sources of Business and Competitive Advantages
Buyers (second-tier wholesalers, retailers, and end users)

Suppliers (makers)

About 5,000 companies

About 3,000 companies

Commercial Sales agent for
supplier
distribution manufacturers

Buyers of production equipment
Solves problems ofsuppliers and buyers byproviding functions such as
price/quantity negotiation,
distribution, and settlement whilegathering information

GlobalmarketDomestic market

Purchasing support
for buyers

About 3,300 Companies Buyers of consumer goods

About 1,500 companies

Competitive
advantage

Solid relationships with business partners and significant
presence we fostered as a wholesaler in our long history
in this industry

Flexible business operation with low risks⚫

With minimum invested capital, we can change or increase productcategories flexibly and approach various markets⚫

Strong relationships with many continuous suppliers and buyers
cultivated over 70 years⚫

To stick to the “procurement process while expecting order receipt”⚫

Worldwide network(16 local subsidiaries and 66 offices in 14 countries/regions *)⚫

* As of April 30, 2024

Human resources for attaining our Management Philosophy
Marketing staff’s capabilities of gathering information, proposing plans,
and negotiating tenaciously, which follow the ambition of the founder6

Expand Product Lineup and Operations Based on Solid Earnings Base in Wholesale
Business

We started business with wholesale of production equipment, developed a revenue basewith recurring transactions with many clients, added some spot transactions, transformed
them into recurring ones, and expanded our business domain and scale

Business operation of YAMAZEN (schematic diagram)Business and Organizational Relationships

Wholesale

Wholesale (Home Products)

Wholesale (Building Materials)

Fabless maker

Wholesale

Wholesale

Wholesale(Machine Tools, Industrial Solution, Tool & Engineering)Home Products

Wholesale

Building Materials

Tool & Engineering

Wholesale

Engineering (inside and outside Japan)

Industrial Solution

Machine Tools

Fabless maker (Home Products)

Increase of products andbusinesses based on recurringtransactions

Overseas Engineering

Inauguration of business*"Fabless maker" refers to net sales from private brand home products, while the "wholesale" ofhome products refers to net sales other than of private brand products.

Present

Domestic Engineering
Production Equipment Business

Consumer Goods Business7

Strengths of Businesses of Production Equipment and Consumer Goods■ Production Equipment
Business

Machine Tools
Domestic/Overseas

Industrial Solution
Domestic/Overseas

Business outline

・In collaboration with top makers inside and outside Japan, we offer
production and processing systems (cutting-edge hardware andsoftware) with machine tools for on-site operation, to support“manufacturing” inside and outside Japan.
・Outside Japan, we have community-based sales systems and an
advanced engineering function in major industrial cities, andcomprehensively support the design of production lines, theinstallation of machine tools, and maintenance.

We meet a variety of needs (consumables, ancillary facilities, etc.) at
production sites, and provide an integrated system for improving production
efficiency through automation and labor-saving, and the environment of eachproduction site, and adopting cutting-edge technologies.

Major items handled
Machine tools (machining centers, CNC
lathes, CNC grinding machines, CNC
milling machines, electric dischargemachines, conventional machine tools,
3D printers, etc.), metal forming
machines, plate processing machines,
injection molding machines, die-castingmachines, CAD/CAM, etc.

Material handling (devices for distribution),mechatronics (mechatronic devices, robots,
labor-saving equipment), aids forenvironmental improvement, etc.

Business model and strengths
Wholesale（Machine
Tools)

Wholesale（Industrial
Solution, Tool
& Engineering)Engineering
Tool & Engineering
Domestic/Overseas

The on-site engineering section automates production lines and selects
machines and blades that constitute the production lines. After thedelivery of equipment, we support the procurement of supplies
and maintenance consistently.

Cutting tools, auxiliary tools, handtools, electric tools, measuring
equipment, fluid machinery, etc.

(inside andoutsideJapan)

Profit margin is low but there is nostock and extremely high return on
capital・To grasp latent needs from users
and propose solutions
・Inventory control for swift
deliveryWe directly sell products tofactories while adding engineeringfunctions, achieving a high profit
margin■ Consumer Goods
Business
Building Materials
Domestic

Home Products
Domestic

To comprehensively propose new products and systems aimed atrealizing society and living space that are friendly to people and theearth, including environment-conscious, decarbonized, healthy, andbarrier-free ones.
In detail, we procure and stably supply processed wooden products andprimarily and secondarily processed industrial products, propose andsell building materials, equipment, devices, etc., and also concentrate
on renovation business.

We deal in familiar and useful products that are used in daily
life, such as home appliances, interior, exterior, leisure, andanti-disaster goods, and possess functions as a trading
company in the field of distribution and logistics and as amaker that plans and develops original products.

Kitchens, cooking appliances, kitchen-related
appliances, bathroom appliances, washbasin
appliances, Water boiling equipment, Sanitary
appliances, air-conditioning/ventilationequipment, solar power generation, storage
batteries, floor heating, solar thermal water
heating equipment, stored-heat heating
systems, plumbing equipment & materials,
interior architectural materials, electricalequipment & materials, etc.

Planning, development, and sale of home
appliances (electric fans, heating equipment,
cooking equipment, audiovisual equipment,
lifestyle appliances), furniture, products foroutdoor and leisure activities, kitchen utensils,
daily goods, exteriors, gardening products,
agriculture products, Healthcare goods,
sanitary goods, industrial tools, goods forautomobiles and motorcycles, anti-disastergoods, etc.

Wholesale

A wholesale model for building
materials and equipment to housebuilders, etc., with an immediatedelivery system through distribution
bases nationwide, with extremely highreturn on capital through a model that
holds almost no stock

Wholesale

Stable cashflow generation
through a wide assortment of
national brand and private brandproducts

Fablessmaker

High profit margin through the saleof private brand products thatmeet consumer needs

8Variation in Performance

Net sales and operating profit remained healthy thanks to robust business despite the changes in theexternal environment
However, sales and income declined in FY3/24 due to the impact on sales from a delayed recovery incapital investment in Japan and overseas, and an increase in depreciation and amortization and other
SG&A expenses due to accelerated growth investment
Variations in net sales and operating profit [100 million yen]
6,000

506.8 billion yen

Novelcoronavirus

200
180

(pandemic)

5,000

160

4,000

140

Bankruptcy
of Lehman
Brothers

120

3,000

100

9.8 billion yen
2,000

80
60
40

1,000

20
0

0
FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

Production Equipment
Overseas, etc.

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

Consumer Goods
Operating profit

9

AGENDA
I. Outline and Our Business Models

II. FY3/24 Financial Highlights
III. Earnings Forecast for FY3/25

IV. Medium-Term Management Plan “CROSSING YAMAZEN 2024”
V. Shareholder Returns and Capital Policy
Appendix10

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.

11

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

12

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%
13

Net Sales Composition by Business (YoY Comparison)

Domestic production equipment: 48.7% → 48.9% (+0.1ppt)
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
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%

10.4%

5.6%

Overseas
production
equipment

Domestic
production
equipment

FY3/23

Building Materials Business: 12.9% → 14.2％ (+1.3ppt)
Home Products Business: 19.1% → 19.9% (+0.8ppt)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)

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%

1.1%

1.0%

Overseas Machine Tools
Other

14

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

15

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
FY3/23Q416

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

17

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
FY3/22Q4

Q118

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

FY3/2419

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.

20

AGENDA
I. Outline and Our Business Models

II. FY3/24 Financial Highlights
III. Earnings Forecast for FY3/25

IV. Medium-Term Management Plan “CROSSING YAMAZEN 2024”
V. Shareholder Returns and Capital Policy
Appendix21

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.
22

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%
23

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

24

Domestic Production Equipment Business Initiatives (1)Strength

Opportunity

Opportunity⚫

The Domestic Production Equipment Business has established a top-class presence in the industry and has roles in
identifying and providing information on numerous manufacturers' products and services and a market-in role ofcapturing user needs through a large number of stores⚫

Promotes value-added sales by enhancing expertise in each business to promote solution proposals for social
issues such as automation, labor saving, and decarbonization⚫

The market for production equipment manufacturers is an area with room for expansion for the Company, such as
semiconductors, distribution, and the three major product industries (food, medicine, and cosmetics)
Strengthening Expertise: Machine Tools Business

Strengthening Expertise: T&E Business

Establish an "Engineering Office" to develop asystem to respond to issues faced by each player

Contribute to users' productivity improvement bystrengthening proposals for process improvement, jigs, etc.
by “technical sales representatives”

Will work on fostering engineering capabilities in order to provide
more benefits to each player and to solidify YAMAZEN's value ofexistence. As a part of this, an "Engineering Office" will beestablished to provide engineering expertise and establish afunction of connecting all players, including manufacturers,
stores, and users, in collaboration with system integrators.

We are strengthening our services to customers, such as process
improvement and product proposals, by assigning "technical sales
representatives" with technical expertise throughout Japan andcollaborating with stores and manufacturers as partners. We are also
participating in product development of peripheral equipment formachine tools, planning original products from the user's point of viewand contributing to productivity improvement and cost reduction.

System Integrator

Distributor

Manufacturers

Backed up by an "Engineering Office" with advanced
product knowledge and engineering capabilities

Users

Five representatives
are assigned to
Osaka, Nagoya,Tokyo, Kitakanto,and Kyushu tohandle projects
nationwide

25

Domestic Production Equipment Business Initiatives (2)⚫

The Domestic Production Equipment Business has established a top-class presence in the industry and has roles in
identifying and providing information on numerous manufacturers' products and services and a market-in role ofcapturing user needs through a large number of stores⚫

Promotes value-added sales by enhancing expertise in each business to promote solution proposals for social
issues such as automation, labor saving, and decarbonization⚫

The market for production equipment manufacturers is an area with room for expansion for the Company, such as
semiconductors, distribution, and the three major product industries (food, medicine, and cosmetics)

Strength

Opportunity

Opportunity

Strengthening Expertise: Industrial Solution Business

Strengthen development of new fields: TFS Division HQStrengthen "solution proposals for social issues" suchas decarbonization, automation, labor saving

Strengthen "development of new fields" such as thethree major product categories, distribution andsemiconductors

In the Industrial Solution Business, we are developing and building asystem to propose solutions to users' individual needs in order to provide
comprehensive solutions to the challenges faced by small, medium, andregional users, such as "personnel shortages," "decarbonization," and"digitalization," and focusing on developing new industries and approachingusers directly. We are also working on developing original commercial
products.

Centered on the TFS Division Headquarters, our specialist engineeringorganization that covers across business divisions, we are focusing on
proposing automated lines, etc. that utilize cooperative robots to users not onlyin the machinery and metal-related manufacturing industries, but also the threemajor product category (food, medicine, and cosmetics) industries, distribution,
warehousing, etc. In addition, a "New Business Development Department" wasnewly established to strengthen sales development to semiconductor
manufacturers and semiconductor material manufacturers.
Case Study of Entry into Three Major Product Categories Industry: Mishima Factory,
FANCL Biken Corporation

Automated system in the manufacturing process of age-specific supplements series
Introduced an automatedsystem to the individualpackage feeding and packaging
line for the company's "agespecific supplement series,"
which are single-packs ofcarefully selected ingredients
according to age and gender

Business meetings on the theme of"decarbonization" were held in
various locations to acquire orders
for aids for environmental
improvement

Enhanced technical support in order tofocus especially on automated system
proposals, including the "eve auto"
automated carrying system

Case study video:
https://youtu.be/JYfaBC9
eUik

26

Domestic Production Equipment Business Initiatives (3)New BusinessStarted a new business to support manufacturing companies with (1) productivity improvement through digitalization, (2)technology and business succession, and (3) development of new sales channels
Finished goods
manufacturers

Manufacturing companies“Genbato”, a composite SaaS platform for manufacturing companies

Operations problem-solving support services
https://genbato.jp/

Seekingcompanies that
can help solve
problems(1) Productivity improvement throughdigitalization

・Drawing management
・Defect records
・Equipment management
・Photo and video utilization services*2(2) Technology and business succession
Applying forroles thatutilize
specialtechnologies
The “Enmusubi" service
provides new opportunities toenter industries for SME
manufacturers who are unable
to devote man-hours to new
business development

Benefits for
manufacturing
companies
Benefits to
the Company

・Securing human resources*
・M&A services*(3) Development of new sales channels

A subscription service
starting at 10,000~20,000
yen per month for eachservice*1*1 Original services only

・Enmusubi(Provides a meeting place for finishedgoods manufacturers and manufacturing
companies)*2 Services provided by partner companies

By utilizing digital services that are easy to adopt, operational issues can be solved, productivity canbe increased, new customer contacts can be made, and new sales channels can be developed
Realize monetization as a new business and establish an "eco-cycle" starting from Genbato
Eco-cycle: A cycle that starts with Genbato and leads to productivity improvement at manufacturing companies → more profitearning opportunities → increased willingness to invest → delivery of necessary products to worksites → further revitalization of
manufacturing companies and growth of the industry as a whole

Launched service on February 21, 2024
Aiming for 7,000 contracts and 1 billion yen in service usage value in FY3/28
27

Overseas Production Equipment Business Initiatives (1)⚫

Strength⚫

Strength

65 offices*1 in 14 overseas countries and regions, covering a wide rangeof regions (about 330 engineers out of about 1,270 overseas personnel *2)

The scale of our global network, built up over our long history since 1963, is
one of the largest among trading companies specializing in production
equipment, and the barrier to entry is highGeographic expansion and restructuring of target markets

Aggressive expansion into the Global South, especially
India, to further expand our "broad global network”⚫

Our localized sales structures and advanced engineering function
allows us to sell directly to Japanese-affiliated and local users, which
achieves strong relationships of trust and high gross profit margins⚫

Changes in the structure of global trade are driving users to relocate theirproduction bases

Strength

Opportunity

Borderless sales activities: Strengthening "cross-border marketing strategies”

Response to users' global investment strategies, which havebecome increasingly active in recent years, by leveraging our
locally-based engineering capabilities
Country A

Japaneseaffiliated user

The YAMAZEN offices
in each country can
respond when a user
relocates or
establishes new
production bases in adifferent country

Country B

Local user

Local user

Japaneseaffiliated user

YAMAZEN's head officeand local subsidiaries
constantly share
information andrespond to user needsfrom all angles
The localized sales
structure through local
personnel
and extensive
buildsYAMAZEN engineering
relationships of trust

YAMAZENYAMAZEN CORPORATION Head Office

China Regional Headquarters

North America Regional Headquarters

Directly under the jurisdiction of the Head OfficeTaiwan Regional Headquarters

ASEAN Regional Headquarters

Advanced engineeringfunctionCentralization of information from local
offices and the head office for security
trade controls defined in the Foreign
Exchange and Foreign Trade Act

YAMAZEN Japan

YAMAZEN’s engineers provide total support for manufacturing by offering a one-stop service that includes
design, sales, installation, testing, after-sales service, and maintenance in response to user needs*1 As of April 30, 2024: Figures for the Production Equipment Business only *2 As of March 31, 2024: Figures for the Production Equipment Business only28

Overseas Production Equipment Business Initiatives (2)Promotion of localization of management
James E. Hansen, a local employee, became an officer and President of the North America Regional Headquarters on
October 1, 2023, and will supervise and direct us in the North American market
Further accelerate the localization and growth of the Overseas Production Equipment Business through management by
personnel familiar with the market

Promote a new model of base development in North America
The scale and roles of bases will be reorganized into four types: (1) Headquarters building, (2) Support & TechnicalCenters, (3) Micro Centers, and (4) Satellite Offices, with the aim of efficiently improving market coverage bycomplementing each other's functions while reducing investment costs according to the market to be targeted

Image of base development (current)
Headquarters building and Support & Technical Centers only
⇒ High cost makes it difficult to expand market area

Image of base development (future)

OfficerJames E. Hansen

President of North America Regional Headquarters,
President of YAMAZEN, INC.,
President of PLUSTECH INC.

Headquarters building
Conduct business management operations and sales support
for each base, display more than 30 machine tools in ashowroom and provide remote live demonstrations

Support & Technical Centers (high cost)
Existing office style with a showroom, turnkey area and office space⇒ Improve efficiency, such as converting to Micro Centers asnecessary

Micro Centers (medium cost)
A small showroom with one or two units and simple
demonstrations of actual equipment. Live demonstrations canalso be viewed from the Headquarters building

Satellite Offices (low cost)
Have only meeting rooms for viewing live demonstrations
from the Headquarters building⇒ Flexible placement in accordance with the market

Aiming to further promote overseas business strategies, the “Global Strategy Dept.” was launched as an organization directly
under the jurisdiction of the President*
Address the creation of detailed overseas measures and accelerate their implementation* As of October 1, 2023

29

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

30Building Materials Business Initiatives
Strength⚫

Top-class distribution volume in Japan for housing equipment, air conditioning equipment, and smart energy equipment⚫

Has a nationwide-level proposal sales system and construction network through the assignment of engineers to sales offices inaccordance with the Construction Business Act⚫

Promoting sales through an organized sales force consisting of business promotion teams dedicated to wide-area builders andvolume retailers and line sales, and steadily increasing market share in the industry even when there is decline in housing starts⚫

Establish a specialized team to propose equipment upgrades that combine environmental products and construction in
response to companies’ initiatives towards carbon neutrality and the demand for energy-saving equipment upgrades due tosoaring electricity costs⚫

Further growth is expected due to increased market share in solar power generation, V2H, and non-residential business, which
are markets that are expected to expand

Strength

Strength

Opportunity

Opportunity

Strengthening of proposals to companies for solar power
generation for in-house consumption
Strengthen proposals for facility renovations that combine environmental
products and installation to help companies respond to carbon neutrality andrising utility costs
PPA or private ownership are both possible depending on customer needs
Expand tie-up companies through new initiatives such as collaboration withfinancial institutions, proposals for sets with industrial storage batteries
centered on reused batteries, and support for SME companies to acquire SBT*1
certification*1*2

Strengthening of proposals of “ZePlus”, our original ZEH*2
Deploying our original concept housing "ZePlus" nationwide
Contribute to the reduction of national energy consumption by supporting local
construction companies to introduce ZEH by providing support for soft aspects
that are difficult for local construction companies to handle, such as simple
calculations for ZEH standards and earthquake resistance standards,
warranty services for housing equipment, support for subsidy applications,and sales promotion activities

SBT (Science Based Targets): Greenhouse gas emission reduction targets set by companies that are consistent with the levels required by the Paris Agreement
ZEH (net Zero Energy House): Housing that achieves an annual primary energy consumption balance of plus-minus "zero" by improving the insulation and energy-saving
performance of the house and generating energy through solar power generation, etc.

31

Home Products Business Initiatives
Strength⚫

Has a product line (electric fans, electric blankets, etc.) that is top-class in its category⚫

Has the ability to offer a variety of sales floor proposals by handling both private brand and national brand products⚫

Sales representatives actively negotiate with and make proposals to a variety of sales channels, including home
appliance retailers, GMS, discount stores, home centers, mail-order companies, and e-commerce companies (bothYAMAZEN’s site and platform sellers), and have the discretionary authority to respond to the needs of each channel⚫

The speed of market launch and the number of products available are high thanks to the discerning and agile
product development system of the MD, who has experience in sales and understands the needs of buyers andconsumers⚫

Sales of private brand products account for almost 60% of total sales, and the profit margin is relatively highcompared to other segments⚫

Fabless structure enables the growth of sales and profit while minimizing investment risk⚫

There are sales channels and markets that the Company can enter, such as B-to-B and local governments

Strength

Strength

Strength

Strength
Opportunity

Opportunity

Strengthen marketing capabilities and accelerate private
brand product development••

To achieve further growth of private brands, we will establish a marketing system toaccurately grasp the needs of buyers and consumers, develop and deploy YAMAZEN's
original private-brand products, and offer an extensive lineup of products
We will aim to increase product turnover by improving development speed and small-lot
production to constantly reap returns, and promote initiatives such as in-house productionof design functions and localization of inspection functions

Folding bed that does not require tools“Wooden Pattant Bed”

Hands-free electric blanket[New Products]“ELEIN” series of lithium-ion
battery-powered
home appliances

Focus on developing new markets such as B-to-B andlocal governments••

In response to diversifying consumer needs and an increasingly competitiveenvironment, we will expand “Yamazen Bizcom”, YAMAZEN's own e-commerce site, tocultivate new corporate customers, and strengthen corporate sales to local
governments and other entities, with a focus on making it one of the pillars of thebusiness
In addition to expanding sales of consumer products to corporate channels, strengthen
product development for B-to-B, aiming to secure sales and profits that will add on toexisting sales

YAMAZEN's own e-commerce site, “Yamazen Bizcom”
As of March 31, 2024: Number of members: approx. 82,000
Sales target for FY3/25: 2.0 billion yen

Disaster Preparedness Bag
Meets demand for office stockpiles

32

AGENDA
I. Outline and Our Business Models

II. FY3/24 Financial Highlights
III. Earnings Forecast for FY3/25

IV. Medium-Term Management Plan “CROSSING YAMAZEN 2024”
V. Shareholder Returns and Capital Policy
Appendix

33

Purpose and Corporate Vision for 2030

Pioneering a new future, with you all

Leading worldwide manufacturing and enriched lives

34

Toward the Realization of the Corporate Vision for 2030
Corporate Vision for 2030:

Leading worldwide manufacturing and enriched lives
Corporate Vision for 2030
2025 - 2027

2022 - 2024

Material issues
Expansion of green businessMaximization of customer
value through digitalization“Company-wide strategies" for Material issues-To establish the company-wide basefor improving profitability

Talent management

DX

Green initiatives

Logistics

Realization of sustainableprocurement and supply
Realization of a rewarding
workplace
Establishment of atransparent governancesystem“Sales strategies” for realizing our corporate vision

Client closenessstrategy

Transformation
strategy

Digitalconvergencestrategy35

Strategy and Investment for Fortifying Our Robust Revenue Base Through Continuous
Transactions

We will create stable cash flows by fortifying the “recurring revenue base,” which is ourforte, conducting investment for maintaining competitive advantages, and adding sales fromsolutions to meet demand in each theme[Business operation of YAMAZEN(schematic diagram)]

Propose solutions tosocial issues such as PPA+
Increase of products andbusinesses based onrecurring transactions

Fabless maker (Home Products)

Engineering (Inside andoutside Japan)
Wholesale (Home
Products)

Further fortification of theestablished businessmodel of YAMAZEN(automation, labor saving, etc.)“Company-wide strategies" for important
issuesTalent management
Wholesale(BuildingMaterials)

DX
Green initiatives

Growth investment
budget in the mediumterm management plan
“CROSSING YAMAZEN
2024”
Business investment(including alliances)
M&A, new business,etc.
20.0 billion yen
Investment in DX andsystems
Initial systemestablishment, etc.
10.0 billion yen

Logistics
Wholesale(Machine Tools, Industrial Solution, Tool &Engineering)
Inauguration of business

Present“Sales strategies” for realizing ourcorporate vision

Client closeness strategy
Transformation strategy

Capital investment
Distribution facilities,etc.
10.0 billion yen

Digital convergence strategy*"Fabless maker" refers to net sales from private brand home products, while the "wholesale" of home products refers to net sales other than of private brand products.

36

“Company-wide strategies" for important issues
Important issues

Expansion of green
business

Company-wide
strategies

Overview■ Diversity & Inclusion

Talentmanagement

Strengthen human capital byfocusing on developing humanresources, which are our corecompetence, promoting
diversity and inclusion, andconducting management that
fosters personnel
Enhance the intellectual capitalof the organization byformalizing the individual sales
and product development knowhow that are our strengths,
leading to improved productivity
and the creation of new addedvalue■ Strengthen DX strategy promotion system

Maximization ofcustomer value
through
digitalization

DX
Realization ofsustainableprocurement andsupplyRealization of arewarding
workplace

Establishment of atransparent
governance systemGreeninitiatives

Logistics

Contribute to thedecarbonization of the entire
value chain through theintroduction and deployment ofenergy-saving equipment andrenewable energies that we
propose, and through services
such as the visualization of CO₂
emissions

Reorganize domestic andoverseas business bases andstrengthen relationships withbusiness partners, including
local suppliers, to ensuresustainable procurement andsupply lines

Key Measures

・Abolition of seniority system
・Active participation of women・Training of professional human capital■ Fostering personnel

・Introduction of YAMAZEN-style target management
system・Establish a DX Strategy Department and DX strategy methodology
・Secure and develop digital human capital■ Improve productivity of existing business processes
・Integrate core business system (SAP ERP) implementation■ Realization of productivity improvement measures to copewith increased workload
・Company-wide BPR promotion (AI/RPA/EDI, etc.)■ Strengthen green strategy promotion system
・Establish a governance structure to promote efforts toaddress issues such as climate change■ Promote green business・Cooperate with suppliers and clients to develop decarbonization
activities as a business in the three fields of "development
business," "sales promotion planning," and "branding"
Example: Development business "Corporate PPA business" and sales
promotion planning "Green Ball Project”■ Contribute to the efficiency and sustainability of distribution operations
・Formulated a three-term, nine-year distribution strategy with the aim to become atransportation and delivery platformer for specific industries by 2030

■ Initiatives for Term 1 (2022 - 2024)

・Developed and introduced LMS/WMS* to realize cross-divisional distribution operations
・Opened Logis New Tokyo (Kitamoto City) in January 2023 as a comprehensive distribution
base, and also developed and linked small warehouses with area delivery functions in parallel

37*LMS: Logistics Management System WMS: Warehouse Management System

“Sales strategies” for realizing our corporate vision
Sales
Strategies

Overview

Key Measures◼ Segment-specific strategies: Clarify targets, strengthen expertise, and implement proposal activities strategicallyClosecustomer
relationshipstrategy

We will work to understandthe issues faced bycustomers worldwide fromtheir perspective, andimplement measures toresolve these issues andrealize a win-win
relationship.

◼ Organization of sales: Formalize the strong sales know-how of individuals and build a sales structure that is alsostrong as an organization◼ Strengthen sales support system: Strengthen marketing, remote sales, and other systems◼ Strengthen digital channels: Strengthen information provision sites, e-commerce sites, etc. that serve as points ofcontact with customers◼ Promote localization of overseas subsidiaries (glocal): Strengthen local structure through development of local
staff, etc.

◼ Acquisition of engineering capabilities: Acquisition of engineering and construction capabilities that contribute to theTransformation
strategy

In addition to selling
products, we will also
provide total solutions for
issues related to productmanufacturing, engineeringand green businesses.

production line and construction sites as a whole◼ Focus on green business: Expand green business that will solve social issues while also leading to increased
corporate value◼ Establish new business models: Establish new revenue structures such as recurring billing businesses◼ Strengthen product development: Strengthen the system for developing new products and services that provide highadded value◼ Strengthen distribution system: Strengthen the distribution system so it can withstand significant future growth

Digitalintegration
strategy

We will strengthen
customer contact points
utilizing digital technology,
provide new solutions,connect the knowledge
obtained to humanresources, and create new
added value.

◼ Fusion of real and online through a production equipment online platform: Build a next-generation B-to-B
website, etc.

◼ Develop in-house commerce through home products website: Gradual expansion of Yamazen Bizcom◼ Strengthen data-driven product development and sales force: Build a data-driven management infrastructure38

Progress of Strategy: ~Green Initiatives Strategy~
Promote Green Business to Further Strengthen Wholesale Business
Development business■ Corporate PPA

Site name

DayZ-1

Crecia, Kaisei

500,000 kWh

Commenced March
2023

DayZ-2

Okudaya, Sakai

110,000 kWh

Commenced June
2023

DayZ-3

Toyo Koken,
Yamanashi

130,000 kWh

Commenced April
2024

DayZ-4

Crecia, Tokyo

380,000 kWh

Planned for Aug.
2024

DayZ-5

Crecia, Koyo

350,000 kWh

Planned for Sept.
2024

DayZ-6

Crecia, Kyoto

4,230,000 kWh

Planned for Dec.
2024

Installation completed at 3 companies and 3 locations
79th term: Installation planned at three Nippon Paper
Crecia locations[Results]
Nippon Paper Crecia, Kaisei Plant
Okudaya Giken, Headquarters Plant
Toyo Koken, Yamanashi Office

Annual electricity sales

Total annual electricity sales / CO2 reduction

5,700,000 kWh

Sales Promotion Business■ GBP App

GBPApp

GBP participants

Provided free of charge to companies participating in
GBP and approximately 280 clients

Operation commenced(planned)

Plant namePresent

TargetProduction
Equipment

211
companies

250
companies

Building
materials

67
companies

80
companies

Subtotal

278
companies

330
companies

278
companies

330
companies

Total

GBP App
Started sale of fee-based services

CO2 reduction
2,500t-CO2

Progress of Strategy: ~Logistics Strategy~
Improve Productivity of Distribution Assets to Further Strengthen Wholesale Business
Share distribution assets across business units by implementing LMS/WMS, increase efficiency through distribution DX, and achieve
the following:
1. Response to the "2024 problem”
2. Control of "transportation and delivery costs”
3. Service improvement through "expansion of same-day/next-day delivery areas" and "optimization of dispersed inventory according
to area demand”
Previously

FutureManufacturers' plants/warehouses

Manufacturers' plants/warehouses
Inventory
products
Orderedproducts

Inventory products
Ordered products

Depot
warehouse
In-housedelivery area

Worksite Routeshipping
Routeshipping

RouteWorksite shippingArea
inventory
Worksite

Yamazen
Logistics
warehouse
area

Route
shipping

Routeshipping

WorksiteWorksiteRouteshipping

Depot
warehouse
In-housedelivery area

Area
inventory

Base inventory In-house delivery

WorksiteDepot
warehouse
In-housedelivery area

Yamazen
Logistics
warehouse

WorksiteDepot
warehouse
In-housedelivery area

Depot
warehouse
In-housedelivery area

Sales operation

WorksiteArea
inventory

Base inventory In-house delivery
area

Area
inventory

Key Measures

Inventory
products
Orderedproducts

Worksite

LMS/WMS

WorksiteArea
inventory[Aim]
Promote joint
utilizationof distribution bases
across the Production
Equipment, Building
Materials, and Home
Products businesses,
which already havemore than 100
locations nationwide↓
Improve the level ofservice by sharing thestrengths of eachbusiness(e.g., utilizing the delivery and installation
skills of the Building Materials Business forlarge home products)

Sales operation

State of progress

Introduce LMS/WMS

Sequentially introduced at Logis New Tokyo, Logis Fukuoka, and Logis Ashikaga from January 2023

Share distribution assets
between businesses

Building Materials Business distribution bases are also being used as small distribution bases for
production equipment

Expand and reorganize
distribution bases“Logis Tokyo" fully operational from January 2023, "New Logis Osaka" to be fully operational in January2025(Started at Okayama Depot in January 2023, Kanazawa Depot and Sendai Depot in March 2024)

Achieve "company-wide
distribution optimization"with the current MediumTerm Management Plan as
the first term, and link it to
the medium- to long-term
strategies of "profitization"and "establishing ascheme for joint
transportation and delivery
in specific industries".

40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%
41

AGENDA
I. Outline and Our Business Models

II. FY3/24 Financial Highlights
III. Earnings Forecast for FY3/25

IV. Medium-Term Management Plan “CROSSING YAMAZEN 2024”
V. Shareholder Returns and Capital Policy
Appendix42

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.”
Material issues
Net sales

Suppliers

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

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

Interest

Taxes

Stakeholder satisfaction

Financial
institutions

Cost of sales

Addressing issues

Employees andtheir families

Stakeholders

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

ProfitShareholders
Shareholders’equityReduced cost ofshareholders' equity

ROE maintained above the cost ofshareholders' equity

Customers*Rise in equity spread×

Optimize
shareholders’ equity

Increased growth rate
⚫ Credit rating with consideration

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

to solve material issues

efforts to solve material issues

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

cash allocation

Capital and shareholder
returns policy

43

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(%)

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

株主資本コスト 30年債

13.8

株主資本コスト 10年債
ROE

12.0

10.9

10.6

150,000

8.6
8.0

8.0
7.4

7.5
7.2

120,000
7.5
7.3
6.7

6.9

19,00016,00012,00013,00090,000
6.4

10,000
5.9

6.2

5.1
5.5

4.0

(Million yen)

14,37810.0

6.0(Million yen)

4.8

5.8

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)

14.0

Market cap/basic operating cash flow44Capital Policy Initiatives Implemented
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

Reducedcost ofshareholders' equity

45

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 date46

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

47

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.

48

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

-

-

49

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

50

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

51

[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.”52

Appendix

53

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

Production
equipment

Business

FY3/24 results

FY3/25 plan

Percentage change

Domestic Machine Tools

Net sales

79,55979,000-0.7%

Domestic Industrial
Solutions

Net sales

89,81795,000+5.8%

Domestic T&E

Net sales

78,23484,000+7.4%

Domestic production
equipment total

Net sales

247,611

258,000+4.2%

Overseas Machine Tools

Net sales

52,72459,000+11.9%Net sales

28,32630,000+5.9%

Net sales

81,05189,000+9.8%

Net sales

328,662

347,000

+5.6%

8,219

9,200

+11.9%

2.5%

2.7%(+0.2ppt)

71,84275,000

+4.4%

2,653

2,700

+1.8%

3.7%

3.6%

(-0.1ppt)

101,119

104,000

+2.8%

5,274

6,300

+19.4%

5.2%

6.1%(+0.8ppt)

172,962

179,000

+3.5%

7,927

9,000

+13.5%

4.6%

5.0%(+0.4ppt)

Net sales

5,241

4,000

- 23.7%

Segment profit-6,259-6,200－-－506,866－
530,000

+4.6%

9,887

12,000+21.4%

2.0%

2.3%(+0.3ppt)

Overseas Industrial
Solutions + T&E
Overseas production
equipment total
Production equipment total

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

Other

Segment profit margin
Net sales
Consolidated

Operating profit
Operating profit margin

54

[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’55

[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.

56

[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

57