TERASAKI REPORT
1 April 2022 – 31 March 2023

Securities code 6637

Financial Highlights
Net sales

O pe ratin g profit

44,253 million JPY

2,868million JPY

Ordi nar y profi t

Profit attributable to TERASAKI shareholders

3,479 million JPY

2,345 million JPY

Up 16.9% year on year

Up 79.0% year on year

Outlook for Financial Year 2023

（Ended 31 March,2024）

Net sales

Operating profit

46,990 million JPY

2,260 million JPY

Up 6.2%
year on year

Up 83.8% year on year

Dividends/Payout ratio
Dividends per share（JPY）
Payout ratio（%）

Down 21.2%
year on year

Ordinary profit

Profit attributable to
TERASAKI shareholders

2,450 million JPY

1,700 million JPY

Down 29.6%
year on year

Up 75.2% year on year

10.2

9.5

16

16

100th Anniversary
18.4 Commemorative Dividend
30
11.1 （Forecast）
18

20

20
（Forecast）

Down 27.5%
year on year

≪Exchange rate assumptions≫

125yen/US$、130yen/EURO、155yen/￡、85yen/A$

30
10
（予想）
（Forecast）

2019
FY

2020
FY

2021
FY

2022
FY

2023
FY

President's Message
We would like to express our sincere gratitude to
our shareholders for continued support.
Capital investments remained strong both in Japanand overseas, except for some countries. In the
shipbuilding industry, being one of our major markets,
the demand for LNG carriers and next-generation ships
intended to help bring about the decarbonization ofvessels for marine transportation has increased. As aresult, the order backlog has remained high, though
the new shipbuilding orders have been generally weak.
On the other hand, supply constraints mainly on
semiconductors and resin products and soaring pricesof raw materials, logistics costs, and energy prices
continued to cause impact on our production costs. In
addition, the Japanese Yen has weakened more than
expected in the foreign exchange market. This resulted
in an upward revision of our earnings outlook, including
review of the exchange rate assumptions.
Under these circumstances, for the consolidated
financial year ended 31 March, 2023, net sales roseyear on year due to increased sales of Circuit Breakers
in Japan, Europe, and Malaysia. It is also coupled with
Marine Systems sales increase, mainly for container
ships and high-voltage shore connection systems,
though there was a decline in Industrial Systems sales.
As a result, operating profit increased and ordinary
profit as well as profit attributable to TERASAKI
shareholders also increased. These were due to interest
income, gain on valuation of derivatives and foreignexchange gains.
Although the COVID-19 pandemic is becoming to beunder control, the prolonged situation in Ukraine andheightened geopolitical risks, such as the confrontation
between the U.S. and China, have caused increase in

Representative Director
President Executive Officer

Taizo Terasaki

uncertainties about the future. We shall continue to
strive to manage our business in a flexible manner so
we can provide our products stably under thesechanging circumstances.
On 1 October, 2023, we will celebrate the 100th
anniversary of our founding. We shall maintain our
missions as follows:(1) Contribute to society by offering safety, security
and comfort to all our customers with world-classproducts and services that we develop, manufacture
and provide.
(2) Achieve the highest level of electric power
distribution and control systems technology.
With these two unwavering missions, we shall strive
to respond swiftly and effectively to customers' needs
by applying the flexible manufacturing and services
utilizing the TEAM TERASAKI network.
We earnestly request our shareholders and partners
for continued support as we pursue these challenges.
June 2023

Industrial Systems

Marine Systems

Pursuing business challenges as a leadinginternational manufacturer of electric power
distribution and control systems in the marine market

Demonstrating originality in theindustrial market with our electric
power distribution and control systems

Circuit Breakers

Achieving and maintaining as themost trusted circuit breakers
manufacturer in the world

TERASAKI in constantpursuit of innovativeelectric power
distribution and control
Engineering & Lifecycle Services
Medical Devices
systems
Contributing to human health andOffering solutions to customers all over thesafety as a manufacturer of medical
devices

world through the engineering and lifecycle
servicesSegment Performance by Region and ProductJapan
Net sales percentage

Net sales
Segment profit▶︎Marine Systems

55.5％

24,553 million JPY （Up 11.6% year on year）
2,332 million JPY （Up 15.4% year on year）

Sales significantly increased for products supplied for container ships and for TERASAKI Shore
Connection ― high-voltage shore connection systems.

▶︎Industrial Systems

There was a decline in sales for projects involving plants in Japan and overseas markets.

▶Medical Devices

Market demands in Japan increased though overseas new capital investments were sluggish.

▶Engineering & Lifecycle Services

Sales slightly increased due to engineering services for domestic railway-related facilities, though
there was a decline in sales for projects that are required to meet the regulations to promoteconservation of marine environments and for engineering services related to industrial systems.

▶Circuit Breakers

Sales in Japan increased due to favorable sales increase in capital investment and the marine
market. Overseas sales decreased in West Asia and Oceania.

Asia
Net sales percentage

13,512 million JPY （Up 26.4% year on year）
985 million JPY （Up 614.0% year on year）

Net sales
Segment profit

There was a substantial increase in profit in this segment due to our efforts to reduce expenses
and the favorable increase in sales.

30.5％▶︎Marine Systems

Sales increased year on year.

▶Engineering & Lifecycle Services

Sales increased for services related to ship inspections and repairs.

▶Circuit Breakers

Sales significantly increased as it was supported by the strong demand in Malaysia.

EuropeNet sales percentage

Net sales
Segment profit▶Circuit Breakers

14.0％

6,188 million JPY （Up 19.8% year on year）
438 million JPY （Up 80.0% year on year）

Sales remained solid in Europe, the U.K., and the Middle East.

▶Engineering & Lifecycle Services

Sales related to circuit breakers replacement increased.

By Product Group
System Products
Net sales

22,935 million JPY

Circuit Breaker Products
Net sales

Orders received

31,451 million JPY（Up 11.8% year on year）

CircuitBreaker
Products

21,317 million JPY

48.2 %（Up 22.9% year on year）

Net sales
percentage by
product group（Up 19.1% year on year）

31,629Order backlog
million JPY（Up 8,515 million JPY from theend of FY2021）（Note）We do not disclose orders received or orderbacklog for Circuit breaker products because
they are manufactured in accordance with
our planned production schedule.

SystemProducts

51.8%

Consolidated Financial Highlights
Net sales

Operating profit/Operating profit ratio（Units: Million JPY）

（Units: Million JPY）

50,00040,00034,72444,25337,856

Operating proﬁt

3,000

2,000

20,000

1,637

6.6

2,500

3,479

2,998

2,000

1,000

1,000
0

2021
FY

0

2022
FY

(Units: JPY)

180.00

97.92
2020
FY

4
2
0

2022
FY

Equity ratio

300（Units: %）200

168.29

6

6.5

2021
FY

250

1,275

500

2020
FY

2,345

2,192

1,500

1,944

2,000

Proﬁt attributable to TERASAKI shareholders
Proﬁt per share（Units: Million JPY）

4,000

2020
FY

Profit attributable to TERASAKI
shareholders /Profit per share（Units: Million JPY）

3,000

0

2022
FY

Ordinary profit

10

4.3

10,0002021
FY（Units: %）

8

1,000

2020
FY

2,868

2,297

30,0000Operating proﬁt ratio

71.7

72.2

2020
FY

2021
FY

67.7

150
100
50

2021
FY

2022
FY

0

2022
FY

Consolidated Financial Statements
Consolidated Balance Sheets
2021FY（As of 31 March 2022）（Units: Million JPY）

2022FY

2021FY（As of 31 March 2023）

Net sales［Assets］
Current assets

36,61342,894Non-current assets

15,804

17,048Property, plant and equipment

9,788

11,180148

142

Intangible assets
Investments and other assets

5,868

5,726

Total Assets

52,41859,943［Liabilities］
Current liabilities

11,437

14,064Non-current liabilities

3,113

5,248

Total Liabilities

14,55019,31334,22736,337

Capital stock

1,236

1,236

Capital surplus

2,244

2,244

Retained earnings

30,74732,857

Treasury stock, at cost△1

△1

Accumulated other comprehensive income

3,602

4,247

38

45

Total Equity

37,86840,629Total Liabilities and Equity

52,41859,943［Equity］
Shareholders' equity

Consolidated Statements of Income （Units: Million JPY）

Non-controlling interests（Note）Monetary amounts are rounded off to one million JPY.

Cost of sales
Gross profit
Selling, general and administrative expenses

1 April 2021
（From
to 31 March 2022）

37,8562022FY

1 April 2022
（From
to 31 March 2023）

44,25328,091

32,1599,764

12,093

8,126

9,224

1,637

2,868

Non-operating income

382

667

Non-operating expenses

75

56

1,944

3,479

Operating profit

Ordinary profit
Extraordinary income

27Extraordinary loss

2

20

Profit before income taxes

1,944

3,466

Income taxes - Current

566

764

Income taxes - Deferred

99

350

Profit for the period

1,278

2,352

Profit attributable to noncontrolling interests

2

6

Profit attributable to TERASAKI shareholders

1,275

2,345

Consolidated Statements of Cash Flows （Units: Million JPY）
2021FY

Cash flows from operating activities

1 April 2021
（From
to 31 March 2022）

39

2022FY

1 April 2022
（From
to 31 March 2023）△663

Cash flows from investing activities△933△1,314

Cash flows from financing activities

△923

1,196

Effect of exchange rate changes
on cash and cash equivalents

562

368

Net increase（decrease）in cash and cash equivalents△1,254△413

Cash and cash equivalents at beginning of year

13,025

11,770Cash and cash equivalents at end of year

11,77011,357

Topics

Terasaki Electric Co.,（Far East）Pte. Ltd. ― Contributors tosafe vessel operations in Singapore ― celebrated its 50th anniversary
Singapore is located at a strategic point on the shipping routes
connecting Europe, the Middle East, and Asia ― the Pacific Ocean
and the Indian Ocean. It has developed into one of the world's
largest international hub ports, and many shipping companies are
based there.
Terasaki Electric Co.,（Far East）Pte. Ltd., known as TEFE in short,
was established in 1973 as a manufacturing and sales base formarine systems in Singapore―a key maritime transport location.
TEFE celebrated its 50th anniversary in March 2023, after playing
a part in the shipbuilding and maritime transport industries which
had grown fast soon after the foundation of the country.
A ceremony to commemorate the anniversary was held on 3
March, 2023 with employees, their family members, and pastpresidents of TEFE as honorable guests. The ceremony was
reminiscent of its history of 50 years, where 201 people from 9
different nationalities attended.

＜Corporate Profile＞■ Company Name ：TERASAKI ELECTRIC CO.,（F.E.）
PTE.LTD.
■ Location：Tuas street, Singapore■ Foundation：March 1973
■ Employees：153（As of 31 March, 2023）

Business Fields of TEFE
Marine Systems

Although Singapore’s shipbuilding industry has shrunkin size in recent years, shipyards that specialize in repairs,
periodic inspections and ship conversions, as well as thosethat specialize in the construction of special type of ships,
continue to develop. TEFE is also continuing to deliver
many innovative marine systems for vessels that help
reduce greenhouse gas emissions, such as crew transfer
vessels for offshore wind-farm and battery-hybrid vessels.
Power distribution systems manufactured at TEFE has
been installed on“RERA AS”, a crew transfer vessel for
the Ishikari Bay New Port offshore wind farm, which wasconstructed in Singapore by Nippon Yusen Kabushiki
Kaisha, Ltd.

Crew Transfer Vessel“RERA AS”
Photo courtesy: NYK Group

Circuit Breakers and Industrial Systems
Singapore has a well-developed transportation infrastructure,including a subway network. A great deal of the electricalequipment installed in these transportation systems issafeguarded by our circuit breakers.
Industrial power distribution boards and control panels
manufactured at TEFE are also installed in some of the subway
stations, contributing to the safe operation of the subway
systems.

Engineering & Lifecycle Services

In response to LNG demand for decarbonization efforts,
projects to convert LNG carriers into floating LNG storage andregasification facilities are being promoted in Singapore. For
some of these projects, TEFE not only provides the power
distribution systems, but also offers engineering services basedon TEFE's extensive experience.
TEFE also operates a service centre at Sharjah, United
Arab Emirates, backed by seven qualified service engineers.
Located near the entrance to the Persian Gulf, it offers services
throughout the Middle East, including port Fujairah, a key port
in the region, and Qatar, a large LNG-producing country.
As one of the important operational bases for Terasaki
Group’
s lifecycle business, TEFE covers Western Asia andEastern Europe, including Turkey, as well as the Middle East,and is proudly contributing to safe vessel operations at sea.

Corporate Information /Stock Information（As of 31 March 2023）
Corporate Profile

SharesCompany Name

Terasaki Electric Co., Ltd.

Total number of shares authorized to be issued

52,000,000

Head Office

6-13-47 Kamihigashi, Hirano-ku, Osaka 547-0002 Japan

Total number of issued shares

13,030,000

Foundation

1 October 1923

Number of shareholders

Established

1 April 1980

Capital1,236 million JPY

Employees

2,039（Consolidated）
533（Non-consolidated）

Consolidated Subsidiaries

Domestic: 5, Overseas: 8

Director ＆ Executive Officer（As of 29 June 2023）
Representative Director
President
Taizo Terasaki
Executive Officer
Director
Senior Managing
Executive Officer

Kazunobu Kumazawa Disclosure, General

Director
Managing
Executive Officer

Junji Nagase

Accounting & Finance,
Information System
Department

Director
Managing
Executive Officer

Masao Nishida

System Division

Director
Managing
Executive Officer

Yoshihiro Umemoto Circuit Breaker Division

Director
Executive Officer

Shunji Okada

Director
Executive Officer

Kazuhiro Yoshikawa Medical Device

Business Planning, R&D,
Affairs

Engineering, Life Cycle

Director
Audit & Supervisory Hirofumi Kobayashi
Committee Member

1,016

Major Shareholders
Shares owned

Share

Terasaki Co., Ltd.

2,200

16.89

Taizo Terasaki

1,138

8.74

Terasaki Trust Co., Ltd

866

6.64

Kaori Aramaki

738

5.66

The Master Trust Bank of Japan, Ltd.

681

5.23

Yuzo Terasaki

677

5.19

Hozansha Co., Ltd.

653

5.01

Terasaki Suppliers Stock Ownership

558

4.28

Terasaki Employee Stock Ownership

557

4.27

NOMURA CUSTODY NOMINEES LTD-TK１ LIMITED

466

3.58

Shareholder（1,000 shares）（％）（Note）Share percentages are calculated without treasury stock（1,021 shares）.

Distribution by Shareholders

Director
Audit & Supervisory
Kunio Chiyoda
Committee Member(External)
Director
Audit & Supervisory
Shunji Takano
Committee Member(External)

13,030thousand shares

Executive Officer

General Manager,
Syujiro Hamano Human Resources &General Affairs

Executive Officer

Masaji Nishino

Executive Officer

Hideki Nakagawa Circuit Breaker Division

Executive Officer

Keita Yasukawa System Division

Executive Officer

Tsutomu Takeda Circuit Breaker Division（1,016 shareholders）

Chief Audit Executive
Internal Audit Section
Sales & Marketing,Marine Systems* Treasury stock（1,021 shares）is included in individual investor andothers.

Production Innovation

Announcement of 100th Anniversary Website

https://www.terasaki.co.jp/english/100th/
We have launched a special website in April,2023!

Please find our corporate message and commemorative logo and slogan description.

6-13-47 Kamihigashi, Hirano-ku, Osaka 547-0002 Japan
TEL：+81-6-6791-2701
https://www.terasaki.co.jp/english/