YAMAZEN CORPORATION

FY3/24(Q2)

Supplementary
Materials for
Financial Results

Stock Code: 8051

YAMAZENCORPORATIONＡＧＥＮＤＡ
I. FY3/24 (Q2) Financial Highlights
II. Earnings Forecast for FY3/24, Medium-Term Management Plan
III. Shareholder Returns

2

ＡＧＥＮＤＡ
I. FY3/24 (Q2) Financial Highlights
II. Earnings Forecast for FY3/24, Medium-Term Management Plan
III. Shareholder Returns

3FY3/24 (Q2) Consolidated Profit and Loss Results(Million yen)

FY3/23(Q2)

PercentagechangeYoY

FY3/24(Q2)

Full Year Plan
(Revised Sept. 13,
2023)

Progress Rate

Net sales

261,817

248,680-5.0%

500,000

49.7%

Gross profit

38,21536,793

-3.7%

-

-

14.6%

14.8%

+0.2ppt--

SG&A expenses

30,06731,923

+6.2%

-

-

Operating profit

8,148

4,869

-40.2%

10,00048.7%(Operating profit
margin)

3.1%

2.0%

-1.2ppt

2.0%-

Non-operating
profit/loss

567

431

-24.0%--

Ordinary profit

8,715

5,301

-39.2%

10,00053.0%

Extraordinary
gain/loss

2

-2

-

-

-

Quarterly profit

5,734

3,274

-42.9%

6,700

48.9%

(Gross profit margin)

attributable to owners of parent

Net sales decreased -5.0% YoY due to slowing in domestic and overseas capital investment trends. Gross profit decreasedby -3.7% due to the impact of lower sales, although the rate increased by 0.2ppt YoY, mainly due to an increase in the shareof net sales of consumer goods. On the other hand, operating profit decreased by 40.2% YoY due to a decrease in grossprofit, an increase in depreciation and amortization and other expenses associated with the introduction of the SAP ERP
system that is a growth investment, and an increase in personnel expenses as an investment in human capital.
4Quarterly Trend in Consolidated Net Sales

FY3/21(million yen)

FY3/22

FY3/23

FY3/24160,000
140,000
120,000
100,000
80,00060,00040,00020,000
0
Q1

Q2

Q3

Q4

5

Outline of Business Segments
Suppliers

YAMAZEN

Users(domestic and overseas)

Production equipment

About 5,000
companies

About 3,000
companies

FY3/24 Q2Domestic Machine
Tools

Machine Tools
Division H.Q.
(Machine tools, etc.),
Makers of factoryequipment, devices,
tools, etc.

Clients

Machine Tool
Sellers, Machinery
Tool Trading
Companies, etc.
around Japan

Overseas Machine 25.9 billion yen
Tools

Manufacturers
in JapanIndustrial Solution
Division H.Q., Tool &Engineering Division
H.Q.

Engineering andmaintenance services(Equipment related to
production facilities, etc.)
ExportHome products

Consumer goods (domestic)

Building materials

About 900

Domestic T&E

39.4 billion yen

Overseas
manufacturers

companies(Building materials andequipment)
Makers of kitchen, airconditioning
equipment, and otherhousing equipment

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

FY3/24Q2

About 400 companies

About 600

Makers of furniture,
Home appliances,etc.

Domestic Industrial
43.5 billion yen
Solution

Overseas Industrial 13.6 billion yen
Solution + T&E

Building Materials
Division H.Q.

companies

Net sales: 160.1 billion yen(accounting for 64.4% of total
sales)
Segment profit
3.4 billion yen
Margin: 2.1%
Overseas sales ratio: 24.7%

16 overseas
subsidiaries
and64 overseas
offices*

About 2,900

companies

37.4 billion yen

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

DIY home centers, large
retailers of electricalappliances, mass retailers ofhome appliances, online
shops, TV-based mail-orderfirms, etc.

Generalcustomers

Net sales: 86.0 billion yen(accounting for 34.6% of total
sales)
Segment profit
4.2 billion yen
Margin: 5.0%

Building
materials
Home
products

35.2 billion yen
50.8 billion yen

E-commerce/B2C*As of October 31, 2023; figures for the Production Equipment Business only6

FY3/24 (Q2) Net Sales by Business Segment(Million yen)

FY3/23(Q2)

FY3/24(Q2)

PercentagechangeYoY

Machine Tools Division

70,81063,468-10.4%

Industrial Solution Division

49,99345,366-9.3%

Tool & Engineering Division

52,99951,288-3.2%(Total for Production Equipment
Business)

173,804

160,123-7.9%

Building Materials Division

33,82835,240+4.2%

Home Products Division

51,72650,805-1.8%(Total for Consumer Goods
Business)

85,55586,046

+0.6%

Other

2,458

2,510

+2.1%

Total

261,817

248,680-5.0%
7Net Sales Composition by Business (YoY Comparison)

Domestic production equipment: 48.1% → 48.5％ (+0.4ppt)
Overseas production equipment: 18.3% → 15.9％ (-2.4ppt)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: 66.4% → 64.4% (-2.0pt)

FY3/24
Q2

15.1%

17.5%

15.9%

Domestic production
equipment

FY3/23
Q2

16.0%

Domestic Machine Tools
Overseas Industrial Solution + T&E

16.7%

15.4%

Domestic Industrial Solution
Building Materials

Building Materials Business: 12.9% → 14.2％ (+1.3ppt)
Home Products Business: 19.8% → 20.4％ (+0.7ppt)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: 32.7％ → 34.6% (+1.9ppt)

10.5%

5.5%

14.2%

Overseas production
equipment

Building
materials

11.1%

Domestic T&E
Home Products

7.2%

20.4%

1.0%

Home
products

12.9%

19.8%

0.9%

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 same period of the previous year. Sales of infrastructure-related equipment, etc. were strong due to urban redevelopment
and public infrastructure renewal demand. On the other hand, sales of material handling equipment were down compared tothe same period of the previous year due to a lull in EC logistics facilities.
Overseas Production Equipment Business: Overall sales in the North America Regional Headquarters were down compared to the same period of
the previous year due to sluggish capital investment, but sales in Mexico were strong in response to the relocation of
production bases from other regions. Sales to EMS enterprises declined in the Taiwan Regional Headquarters, while sales in
the China Regional Headquarters were down compared to the same period of the previous year due to sluggish sales toexport-oriented industries. In the ASEAN Regional Headquarters, Indonesia and India posted strong sales mainly in theautomobile and motorcycle fields, but overall results were down compared to the same period of the previous year mainly due
to the delayed recovery in demand for semiconductors.

Net sales (Millions of yen)

Production equipment

Domestic

FY3/24(Q2)

Percentage change
YoY

Machine Tools Business

41,78637,471-10.3%

Industrial Solution + T&E Business Total

84,05383,029-1.2%

Industrial Solution Business

43,64543,536-0.2%

Tool & Engineering Business

40,40739,492

-2.3%

Total

125,840

120,500-4.2%

Machine Tools Business

29,02425,996-10.4%

18,94013,625-28.1%

Total

47,964

39,622-17.4%Net sales

173,804

160,123-7.9%

Segment profit

6,916

3,434

-50.3%

Segment profit margin

4.0%

2.1%

-1.8ppt

Overseas Industrial Solution + T&E Businesses Total

Total

FY3/23(Q2)

9

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

80,000

Domestic Industrial Solution

Domestice T&E

70,00060,00050,00040,00030,00020,00010,000
0

Q1

Q2

Q3

Q4

Q1

Q2

FY3/21

Q3

Q4

Q1

Q2

FY3/22Q3

Q4Q1

FY3/23

Q2
FY3/24(million yen)Overseas Machine Tools

30,000Overseas Industrial Solution + T&E

25,00020,00015,00010,000
5,000
0

Q1

Q2

Q3

FY3/21

Q4

Q1

Q2

Q3

FY3/22

Q4

Q1

Q2

Q3

FY3/23Q4Q1

Q2

FY3/2410

Consumer Goods Segment Overview (Building Materials/Home Products)
・Building Materials Business: Amid stagnant demand, sales of bathroom appliances, solar power generation systems, storage batteries, etc. remained
strong due to proposals of high-value-added products in response to consumers' desire to reduce spending due to soaring utility
costs. Proposals for facility renovations that combine environmental products and installation were also 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-consumption.
・Home Products Business: Results are down YoY as the demand arising from “staying home” due to refraining from going out and the expansion of
remote working having run its course, soaring prices of raw materials, electricity, and gas, as well as the weak yen, has reduced
consumer appetite for durable consumer goods, although there were also record hot temperatures nationwide, so sales of electric
fans, circulators, clothing with air conditioning fans, and other private-brand products with unique value-added features that meet
consumer needs remained strong.

FY3/23(Q2)(Million yen)
Net sales

Consumer goods

Building Materials
Division

Segment profit
Segment profit margin
Net sales

Home Products
Division

Segment profit
Segment profit margin
Net sales

Total for Consumer
Goods Business

Segment profit
Segment profit margin

33,8281,131
3.3%
51,726
1,934
3.7%
85,5553,065
3.6%

FY3/24(Q2)

35,2401,207
3.4%
50,805
3,085
6.1%
86,0464,293
5.0%

Percentage change
YoY

+4.2%
+6.8%
+0.1ppt-1.8%+59.5%+2.3ppt+0.6%+40.1%+1.4ppt11

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

Q4

Q1

FY3/21

Q2

Q3

Q4

Q1

FY3/22(million yen)

Q2

Q3

Q4

FY3/23

Q1

Q2
FY3/24Home products

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

5,000
0

Q1

Q2

Q3
FY3/21

Q4

Q1

Q2

Q3
FY3/22

Q4

Q1

Q2

Q3
FY3/23Q4Q1

Q2
FY3/2412

Factors for Changes in Operating Profit(Million yen)

Operating profit

Decrease in grossprofitIncrease in SG&A
expenses

1,422

1,856
Operating profit

8,148

FY3/23
Q2

Production
equipment
Building
Materials
Home Products
Other-2,267
+210
＋679
-45

Depreciation andamortization
Commission paid
Personnel
expenses
Travel expenses
Freight

YoY: -3,278

+805

4,869

+689
+266
+258
-400

FY3/24Q2
13

Consolidated Total Assets

Assets(End of Mar. 2023)

Liabilities and Total Assets(End of Sept. 2023)(End of Sept. 2023)

Current liabilities

2,385

-68

Current assets

2,317

1,327
Long-term liabilities

215

503

+9

Noncurrent assets andNet assets

deferred tax assets

1,287

513

Total assets
End of Mar. 2023

Item

End of Sept. 2023

10.6%

ROE

2.6%

1,383.65 yen

Shareholders’equity ratio
Net assets per
share

90.3 billion yen

Market cap

104.4 billion yen

14.4 billion yen

Basic operating
cash flow

5.7 billion yen

42.6%

45.1%
1,438.10 yen

2,830(End of Mar. 2023)

ｰ113
+5

1,441

209

+50

1,237

-58

2,888
(Unit: 100 million yen)

*ROE, shareholders’ equity ratio and net assets per share are taken fromthe financial results summary.
*Market capitalization is calculated by multiplying the closing price at theend of the fiscal year by the number of shares outstanding (excluding
treasury shares) on the same date.
*Basic operating cash flow is calculated by deducting theincrease/decrease in working capital from operating cash flow.
*Amounts less than 100 million yen have been rounded.

14

ＡＧＥＮＤＡ
I. FY3/24 (Q2) Financial Highlights
II. Earnings Forecast for FY3/24, Medium-Term Management Plan
III. Shareholder Returns

15

FY3/24 Disclosed Full-year Plan

(Million yen)

FY3/23Results

FY3/24Plan

FY3/24
Plan(Announced May 2023)(Revised Sept. 2023)

PercentagechangeYoY

527,263550,000

500,000-5.2%

Operating profit

16,56315,00010,000-39.6%

Operating profit
margin

3.1%

2.7%

2.0％

-1.1ppt

Ordinary profit

17,28015,00010,000-42.1%

Profit attributable to12,527

10,0006,700-46.5%Net sales

owners of parent

The announced full-year plan for FY3/24 planned for sales to increase but profits to decrease as of May
2023, with depreciation expected due to the acceleration of growth investment, but it was revised tothe above in September 2023 as the recovery in capital investment in the Japanese domestic market isdelayed, and the economic momentum in overseas markets, China in particular, is weak, and a
cautious attitude toward capital investment is expected to continue.
16Full Year Business Plan - Net Sales by Business(Million yen)

FY3/23Results

FY3/24
Plan(Revised Sept. 2023)

PercentagechangeYoY

Machine Tools Division

151,214132,000-12.7%

Industrial Solution Division

96,31593,000-3.4%

Tool & Engineering Division

105,673

103,000-2.5%(Total for Production Equipment
Business)353,203

328,000-7.1%

Building Materials Division

68,03169,000＋1.4%

Home Products Division

100,711

101,000＋0.3%(Total for Consumer Goods
Business)

168,742

170,000

＋0.7%

Other

5,317

2,000

-62.4%

Total

527,263

500,000-5.2%
17

FY3/24 Forecasts for the Production Equipment Business(Million yen)

Production Equipment
Business Total

PercentagechangeNet sales plan
(Revised Sept. 2023)

Full-year

YoY

328,000

Percentage

Segment profit
planchangeOperatingprofit margin

YoY

-7.1%

8,000

-42.7%

2.4%

Production Equipment Business: 3-year sales trends and full-year forecasts
400,000

330,942350,000
300,000
250,000

200,000
150,000

265,059

064,942

19,544
43,621

141,885

60,007
FY3/21

Domestic Machne Tools
Overseas Machine Tools

33,65062,715

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

✓

Outside Japan, we will
geographically expand andrestructure target markets, andenhance borderless marketingand initiatives in growing
industries.

52,00088,00190,00078,21488,49880,000FY3/22

FY3/23

FY3/24 (plan)

Domestic Industrial Solution
Overseas Industrial Solution +T&E✓

26,00080,000FormerIndustrial
Tools&
Equipment
Division(Domestic)

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

328,000

80,337
160,416

100,000
50,00027,369353,203✓

Domestic T&E*Ogaki Kiko Co., Ltd., which had been classified as “Other Business,” has been included in “Production Equipment Business” since the Q1 of FY3/23 due to the revision of the performance management
segment of our group. The above performance in FY3/21 is based on the reportable segments before the revision.

18

FY3/24 Forecasts for the Consumer Goods BusinessNet sales plan
(Revised Sept. 2023)(Million yen)

Percentage change
YoY

Percentage

Segment profit
planchangeOperatingprofit margin

YoY

Building Materials Division

Full-year

69,000

＋1.4%

2,400

＋2.5%

3.5%

Home Products Division

Full-year

101,000

＋0.3%

6,000

＋21.0％

5.9%

Consumer Goods Business: 3-year sales trends and full-year forecasts

175,000

162,121167,036

103,379

104,866

168,742

170,000■Building Materials Division✓ Continue proposal-based salesof high-value-added products✓

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

101,000✓

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

69,000■Home Products Division✓ Develop new products thatmeet consumer needs andpopularize own brands

150,000
125,000
100,000

100,71175,00050,00025,000058,741

62,16968,031✓
FY3/21

FY3/22

Building materials

FY3/23

FY3/24 (plan)

Expand the online shop
(YAMAZEN Bizcom)

Home products

19

Revision of Earnings Forecasts - Before/After Comparison(Million yen)Segment

Business

Machine Tools(Domestic)
Domestic Industrial
Solution
Domestic T&E
Production
equipment

Machine Tools(Overseas)
Overseas Industrial
Solution + T&E

Production
equipment total

Building materials

Home products

FY3/24plan(Announced
May 2023)(Revised Sept.
2023)

Difference
YoY

Difference
from initial
plan

PercentagechangeYoY

Percentagechangefrom initialplan

88,49894,00080,000-8,498-14,000-9.6%-14.9%Net sales

88,00197,00090,000＋1,998-7,000

＋2.3%

-7.2%

Net sales

80,33786,00080,000-337-6,000

-0.4%

-7.0%

Net sales

62,71565,00052,000-10,715-13,000-17.1%-20.0%Net sales

33,65031,00026,000-7,650-5,000-22.7%-16.1%Net sales

353,203

373,000

328,000-25,203-45,000-7.1%-12.1%

Segment profit

13,965

14,5008,000-5,965-6,500-42.7%-44.8%

Segment profit
margin

4.0%

3.9%

2.4%

-1.5ppt-1.4ppt−−

Net sales

68,031

71,00069,000＋968-2,000

＋1.4%

-2.8%

Segment profit

2,341

2,400

2,400

＋58

0

＋2.5%

0

Segment profit
margin

3.4%

3.4%

3.5%

＋0.0ppt＋0.1ppt−−

100,711

105,000

101,000＋288-4,000

＋0.3%

-3.8%

Segment profit

4,960

5,800

6,000

＋1,039＋200＋21.0%＋3.4%

Segment profit
margin

4.9%

5.5%

5.9%

＋1.0ppt＋0.4ppt−−

168,742

176,000

170,000＋1,257-6,000

＋0.7%

-3.4%

Segment profit

7,301

8,200

8,400

＋1,098＋200＋15.0%＋2.4%

Segment profit
margin

4.3%

4.7%

4.9%

＋0.6ppt＋0.3ppt−−

Net sales
Consumer goods
total

FY3/24plan

Net sales

Net sales
Consumergoods

FY3/23
results

20

Medium-Term Management Plan: Disclosed Plan for
Sales/Profit/Management Indicators

FY3/23 results

FY3/25 plan

(First year of MediumTerm Management Plan)

FY3/24 plan

FY3/24 plan

(Announced May 2023)(Revised Sept. 2023)

501,872

527,263550,000

500,000

600,000

Operating profit

17,133

16,56315,00010,00021,000Operating profit
margin

3.4%

3.1%

2.7％

2.0％

3.5%

Ordinary profit

17,093

17,28015,00010,00021,000

Profit12,023

12,527

10,0006,700

14,000(Million yen)

Net sales

Indicators(Million yen)

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

FY3/22

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

FY3/25 plan

(First year of MediumTerm Management Plan)

FY3/24 plan

FY3/24 plan

(Announced May 2023)(Revised Sept. 2023)

10.9%

10.6%

7.9％

5.3％

10.0%

12,052

14,427

14,50011,00018,000

39.9%

42.6%

40～45%

40～45%

40～45%

FY3/22(Final year of Medium-Term
Management Plan)

21

ＡＧＥＮＤＡ
I. FY3/24 (Q2) Financial Highlights
II. Earnings Forecast for FY3/24, Medium-Term Management Plan
III. Shareholder Returns

22Notice of Change in Shareholder Returns Policy(Disclosed on August 10, 2023)

Reason for change:
The shareholder returns policy is specified in terms of the consolidated payout ratio, however, because 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 level based on the progress of the investment plan and a short-term downturn in earnings, wehave therefore revised our shareholder return policy as follows to ensure stable and continuous shareholder returns.

BeforechangeYamazen Corporation’s basic policy has been to return profits to shareholders in consideration of profit levels, based on theestablishment of a stable financial base and improvement of profitability, and to maintain stable dividends to shareholders
with a target payout ratio of 30%.

After change

Yamazen Corporation has positioned return of profits to shareholders as a priority issue for management. Our basic policy is
now to distribute profits in line with business performance, while balancing investment for sustainable growth withenhancement of corporate value and financial soundness to prepare for diverse risks, with the annual dividend amount set
at a consolidated dividend payout ratio of 40% (performance-linked profit distribution indicator) or a dividend on
equity ratio (DOE) of 3.5% (stable profit distribution indicator), whichever is higher.
Yamazen Corporation will also flexibly implement share repurchasing in consideration of timing and financial position inorder to provide additional returns to shareholders and improve capital efficiency.

Applicable period: FY3/24 and FY3/25(During the period of the Medium-Term Management Plan “CROSSING YAMAZEN 2024”)(Yen)

１株当たり当期純利益
Profit per share

１株当たり配当金
Dividend per share

Consolidated
連結配当性向（％）
payout ratio

65.00

140.00

（％）

65.00

50.00

80.00

45.00

60.00

40.00

0.00

Net assets per share
１株当たり純資産

DOE ratio
純資産配当率（%）

3.9 3.8 3.8
3.5

25.51
22.51

32.06
30.61

33.03

35.05

35.00

26.17

28.37
30.15 27.95

24.92

1,000.00

3.0

3.0

2.9

3.0

1.9

500.00

30.00

3.0
2.5
2.0

25.00
20.00

4.0
3.5

3.1
2.6

（％）

4.5

55.00

100.00

20.00

4.3

60.00

120.0040.00

Dividend per share
１株当たり配当金(Yen)

1,500.00

15.00 15.00 20.00 30.00 30.00 32.50 36.00 30.00 20.00 35.00 40.00 49.00

0.00

1.5

23

Shareholder Returns➢➢

FY3/23: Paid an interim and year-end dividend of 20 yen per share each, for an annual dividend of 40 yen per share.
FY3/24: Plan to pay an interim dividend of 20 yen per share and a year-end dividend of 29 yen per share, for an annual dividend of 49 yen per
share.

160.00140.00

Profit per share

65.0

Consolidated payout ratio

7060

120.0050

100.00
80.00

30.6

33.0

35.0

28.0

30.2

24.9

60.00

40

28.4

26.2

30
20

40.00
20.00

98.01

90.82

107.79128.80

85.60

80.25

133.74141.0075.41

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

10

0.00

0
plan

FY3/18

FY3/19FY3/20FY3/21

FY3/22

Total for the last 3 years
FY3/22-FY3/24
plan

FY3/24plan

FY3/23

Interim

13.0

15.0

16.0

10.0

10.0

20.0

20.0

50.0

Year-end

*19.5

*21.0

14.0

10.0

*25.0

20.0

29.0

74.0

Annual

*32.5

*36.0

30.0

20.0

35.0

40.0

49.0

124.0

Payout ratio (%)

30.2

28.0

35.0

24.9

26.2

28.4

65.0

35.4

Dividend paid (million yen)

3,074

3,405

2,837

1,891

3,115

3,560

4,362

11,038

733

-

-

-

5,999

-

-

5,999

Dividend per share (yen)Amount of treasury stockacquired(million yen)-

*Includes special dividends and commemorative dividends

24

Pioneering a new future, with you all[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
assumptions 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 tovarious factors. Factors that may affect future 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.”25