Consolidated Financial
Results FY2023

May 15, 2024

Index• Results Highlights• FY2023 Results• FY2023 Results by Segment• FY2024 Outlook

1Company ProfileCompany NameHIRANO TECSEED Co., Ltd.

Representative

Kaoru Okada, President

Paid-in Capital¥1,847,821,000 (as of end-March 2024)

Headquarters

101-1, Kawai, Kawai-cho, Kitakatsuragi-gun, Nara Pref. 636-0051, Japan

Group Companies（wholly-owned）• HIRANO GIKENKOGYO Co., Ltd. • HIRANO K&E Co., Ltd., HIRANO AMERICA, INC.

Number of Employees

314 (Consolidated: 413, as of end-March 2024)

Securities Code6245 (Industry: Machinery)2

Results Highlights
FY2023 results

FY2024 earnings forecasts
FY2023

Net Sales

FY2024 forecasts

YoY¥46,946mn¥4,522mn＋10.7％¥142mnNet Sales¥44,000mn

Operating Income¥2,900mn

YoY¥-2,946mn-6.3％¥-336mn

Operating Income¥3,236mn

Operating Income
Margin6.9%-0.4pts

Operating Income
Margin6.6%-0.3pts

ROE

6.5%+0.1pts

ROE

5.5%-1.0pts＋4.6％-10.4％

Topics
FY2023 results

FY2024 earningsforecasts

 Net sales rise in the Coating and Laminating Machinery Segment on working through the order backlog for lithium-ion battery
application orders and the impact of price negotiations.
 Operating income rises in the Industrial Machinery Segment despite decline in net sales thanks to improved gross income mix fromincrease in weighting of MLCC and polyimide film sales.
 All-company operating income margin falls as ongoing efforts to renegotiate prices and cut costs and the contribution of high-marginorders is insufficient to offset the effects of sharply higher prices for main industrial materials and labor expenses.
 Expect decline in net sales and income owing to change in capex trends at customers, especially in the lithium-ion battery industry.
 Despite a likely decline in capital efficiency due to lower YoY income because of change in market conditions, we are committed toraising ROE throughout the life of the next medium-term management plan by implementing the plan’s key initiatives.
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FY2023 Results

Overview of FY2023 Results
Overview of 1Q-4Q FY2023 Results(Unit: ¥million)

1Q-4Q

FY2022a1Q-4Q

FY2023bFY2023 results overviewChangeYoY(%)

b-a(b-a)/a Orders: Down as adjustments for changes in clients’ delivery locations, etc.
overlapped with a fallback from strong advance orders in FY2022 andearlier, particularly for EV-use lithium-ion battery coating equipment, anddecline in clients’ order appetite as they monitored market conditions.

Orders53,49429,848-23,645-44.2%Net Sales

42,423

46,946+4,522+10.7%

Operating
Income3,093

3,236+142+4.6%

Operating
Income Margin

7.3%

6.9%

-0.4pts-Ordinary Income

3,219

3,394+174+5.4%

OrdinaryIncome Margin

7.6%

7.2%

-0.4pts-Net Income

2,243

2,438+195+8.7%

Net Income
Margin5.3%

5.2%-0.1pts-

 Net sales: Up in the Coating and Laminating Machinery Segment onworking through the order backlog for lithium-ion battery applications,but down in the Industrial Machinery Segment despite film making
systems for semiconductor materials applications such as MLCC andpolyimide films becoming the main focus.
 Operating income: Up on increase in net sales, but operating income
margin down as price negotiations and initiatives to cut costs throughproductivity increases are insufficient to offset sharply higher costs(mainly for industrial materials and personnel).
 Ordinary income: Ordinary income margin down despite rise in ordinary
income from increase in net sales.
 Net income: Net income margin down despite rise in net income fromincrease in net sales
5FY2023 Results by Segment
1Q-4Q FY2022(Unit: ¥million)
Consolidated total

Coating and Laminating
Machinery Segment

A

YoY %

b-a(b-a)/a53,494

29,848-23,645-44.2%Net Sales

42,423

46,946+4,522+10.7%

Operating Income*1
Operating Income Margin

3,093
7.3%

3,236
6.9%

+142
-0.4%

+4.6%
-Orders

46,50324,222-22,280-47.9%Net Sales
Operating Income Margin

31,1791,985
6.4%

37,374
3,168
8.5%+6,195+1,183+2.1pts+19.9%+59.6%-

Orders

4,757

4,149-607-12.8%Net Sales

9,774
2,069
21.1%
2,233
1,470
82
5.6%

7,850
1,257
16.0%
1,476
1,720
269
15.7%

-1,923-811-5.1pts
-757
+250
+187
+10.1pts-19.7%-39.2%-33.9%+17.0%+227.7%-

Operating Income*2
Operating Income MarginOthers, AdjustmentsbChangeOrders

Operating Income*2

Industrial Machinery
Segment

1Q-4Q FY2023

OrdersNet Sales
Operating Income*2
Operating Income Margin*１：After adjustment for SG&A not assignable to any reporting segment*２：Operating income equivalent to segment profit in the quarterly results report6Factors for Change in FY2023 Operating Income

Factors for Change in FY2023 Operating Income(Unit: ¥million)

Main factors（ー）Rise in sales commissions

3,236

Main factors（＋）Sales up on working
through order backlog（ー）Costs up on sharply higher
industrial materials prices,change in locations/specs
Delays from longer
construction times

Coating and Laminating Segment+1,184Main factors（ー）Income down on sales decline
Income down on productmix deterioration

Industrial Machinery Segment-812

Others+186

SG&A, etc. not
attributable toany othersegment*

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FY2023 Balance Sheet
Assets(Unit: ¥million)

End-FY2022
Value

1Q-4Q FY2023
Value

Change48,15849,639

+1,48012,363

13,290

+926

7,408

7,511

+102

672

560

-112

4,283

5,218+935

Total Assets

60,522

62,929+2,407

Current Liabilities

23,4281,096
35,99759.5%22,965
1,401
38,562
61.3%-463+304+2,565+1.8pts

Current Assets
Fixed Assets
Tangible FixedAssets
Intangible FixedAssets
Investments andOther Assets

Fixed Liabilities
Net Assets
Equity Ratio

Current Assets Up ¥1,480mn
 Notes receivable, accounts receivable, and contract assets up ¥2,782mn
 Electronically recorded monetary claims up ¥525mn
 Marketable securities down ¥2,299mn
 Other current assets down ¥2,007mn
Fixed Assets Up ¥926mn
 Investment securities up ¥852mn

Liabilities
Current Liabilities Down ¥463mn
 Short-term borrowings down ¥4,100mn
Fixed Liabilities Up ¥304mn
 Other fixed liabilities up ¥320mn

Net Assets
Net Assets

Up ¥2,565mn
8Change in Notes and Accounts Receivable - Trade, and Contract
Assets, and Electronically Recorded Monetary Claims - Operating(Unit: ¥million)

Notes receivable +Electronicallyrecorded monetaryclaims

Delivery completed
at the beginning of
the term +translation
adjustment

accounts receivable

Contract assets

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FY2023 Results by Segment

Order Backlog, Net Sales, and Orders in the Coating and Laminating Machinery Segment
Order backlog, net sales, and orders in the Coating andLaminating Machinery Segment(Unit: ¥million)
30,000Net sales

OrdersHighlights in the Coating and Laminating Machinery Segment

Order backlog

90,00025,00075,00020,00060,00015,00045,00010,00030,0005,000

15,00000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2020

FY2021

FY2022Marketconditions

 Growth slowing in the lithium-ion battery market(particularly in the EV market), but expect solid
growth in the long term, with particularly strong
prospects in North America, Asia, and Europe Orders decline YoY on fall in customers’ appetite for
new capex due to advanced orders in FY2022 and inreaction to slower EV market growthOrdersNet Sales While monitoring client trends, worked through theorder backlog, and pursued productivity improvement
by developing and strengthening business
partnerships that boost production capacity, and by
sharing and standardization of components
 Net sales up YoY, mainly in energy-related areas, onsome progress in working through order backlog
 Continuing price negotiations with clients, which has
contributed to higher sales for some projects

FY2023

11Order Backlog, Net Sales, and Orders in the Industrial Machinery Segment
Order backlog, net sales, and orders in the Industrial
Machinery Segment(Unit: ¥million)
6,000

Net sales

OrdersHighlights in the Industrial Machinery Segment

Order backlog

18,0005,000

15,0004,000

12,000

3,000

9,000

2,000

6,000

1,000

3,000

00
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2020

FY2021

FY2022Marketconditions

OrdersNet Sales Market being driven by film making systems forsemiconductor materials applications, such as MLCC
and polyimide films
 Market sluggish on impact of Chinese economic
conditions, but expect long-term growth and capex
investment by sector majors
 MLCC orders down slightly YoY after inquiries fromclients in regions such as Japan and China
 Client inquiries for polyimide films also working on
turning these into orders

 Net sales down YoY as film making systems forelectronic materials applications become the mainfocus

FY202312

FY2024 Outlook

FY2024 Earnings Forecasts(Unit: ¥million)

FY2023

FY2024 Forecastab

YoY
Change b-a

YoY % (b-a)/aNet Sales

46,94644,000-2,946-6.3%

Operating Income

3,236

2,900-336-10.4%

Operating Income Margin

6.9%

6.6%

-0.3%

-Ordinary Income

3,394

3,000-394-11.6%

Ordinary Income Margin

7.2%

6.8%-0.4%-Net Income

2,438

2,100-338-13.9%Net Income Margin

5.2%

4.8%

-0.4%

-ROE

6.5%

5.5%-1.0pts

Dividends Per Share

¥88

¥90円

+¥2Interim

¥28

¥45円

+¥17Year-end

¥60

¥45円

-¥1514

Disclaimer
This document provides information intended solely to help readers’ understanding of HIRANO TECSEED CO., LTD.
Thus, we have no intention to solicit or encourage investment for securities or financial products mentioned in this document. Also, readers are advised that thisdocument is not a disclosure document or statement of financial performance as required by Japan’s Financial Instruments and Exchange Act, Act on Investment Trusts
and Investment Corporations, related cabinet orders, cabinet office ordinances or rules, the rules governing companies listed on the Tokyo Stock Exchange, or any
other applicable rules.
This document contains forward-looking statements, including forecasts of financial position, results of operations, and business-related matters, as well as statements
related to the plans and goals of the management of HIRANO TECSEED CO., LTD. There are a number of known and unknown risks and uncertainties that can cause its
actual results or performance to differ materially from any explicit or implicit forecasts contained herein. These forward-looking statements also rest on a number ofassumptions with regard to our present and future management strategies, as well as the political and economical environments in which we will conduct its futurebusiness operations.
Although the information contained in this document is the best available at the time of publication, no assurances can be given regarding the accuracy, certainty,
validity or fairness of this information and we are not responsible for any error or inaccuracy in the information or data contained herein.
The content of this document can be modified or withdrawn without prior notice.

15 May , 2024
Contact:
General Affairs Division HIRANO TECSEED Co., Ltd .
https://www.hirano-tec.co.jp/en/contact/
Tel: +81-745-57-0681

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