TERASAKI REPORT
1 April 2020 – 31 March 2021

Securities code 6637

Financial Highlights
Net sales

O pe ratin g profit

34,724 million JPY

2,297million JPY

Down 5.4% from the same term last year

Down 4.7% from the same term last year

Recurri ng pr ofi t

Profit attributable to owners of the company

2,998 million JPY

2,192 million JPY

Up 5.9% from the same term last year

Outlook for Financial Year 2021
Net sales

Operating profit

37,050 million JPY

2,400 million JPY

Up 6.7% from thesame term last yearDividends/Payout ratio
Dividends per share（JPY）
Payout ratio（%）

12.7

13.9

Up 4.5% from thesame term last year

Recurring profit

Profit attributable toowners of the company

2,490 million JPY

1,750 million JPY

Down 17.0% from thesame term last year

Up 7.7% from the same term last year

Down 20.2% from thesame term last year

10.2

1414

2017
FY

2018
FY

9.5

16162019
FY2020FY18（Forecast）

2021
FYPresident's Message
Capital investments remained sluggish in Japan,
mainly due to the reduction in corporate earningscaused by the spread of COVID-19 and theuncertainties over the economic outlook during
this pandemic. On the other hand, capital
investments overseas generally showed signs ofrecovery, although the re-emergence of theinfectious disease caused the economic recovery
to stall in some regions. The shipbuilding industry,
being one of our major markets, was still
struggling against imbalances in supply anddemand, causing a drop in the price of ships andsluggish orders for new vessels. However, orders
by marine transport companies for container
ships were showing signs of increase in the 4th
quarter of financial year 2020, against thebackdrop of stable cargo movements.
Under these circumstances, for theconsolidated financial year ended in March 31,2021, sales remained stable for high-value-added
ships in Marine Systems, for domestic plants in
Industrial Systems, and for COVID-19 test-related
equipment. Meanwhile, sales declined in Circuit
Breakers and Engineering & Lifecycle Services,
mainly because economic activities and overseas
travel were restricted due to the spread of
COVID-19. As a result of this, net sales decreasedas compared with the same term last year andoperating profit also decreased despite ourefforts to reduce costs and expenses. Recurring
profit increased, partly due to foreign exchange
gains. Profit attributable to owners of thecompany also increased.
In financial year 2021, society will have furtherPresident

Taizo Terasaki
expectations for our business activities
concerning reduction of the environmental impact
and maintenance of social infrastructure, as wellas the enhancement of corporate governance. To
meet these expectations, we will re-double ourefforts in providing excellent products andservices that contribute to the achievement of theSDGs, through the active promotions of digitaltransformation and green energy-related projects.
We will strengthen our global co-operation as"TEAM TERASAKI" and respond swiftly andeffectively to customers' needs, in order to makefurther improvements in customer satisfaction.
We will continue to be committed to making
perpetual efforts to promote the businesses ofour five divisions.
We earnestly ask for continued support fromour shareholders and partners as we pursue
these challenges.
June 2021Industrial Systems

Marine Systems

Pursuing business challenges as a leadinginternational manufacturer of electrical power
distribution systems for marine applications

Medical Devices

Demonstrating originality in industrial
markets with our electrical power
distribution systems

Circuit Breakers

Reigning as the most trusted circuit
breakers manufacturer in the world

TERASAKI in constantpursuit of innovativeelectrical power
distribution and control
Engineering & Lifecycle Services
systems
Offering solutions to worldwide customers

Contributing to human health andsecurity as a manufacturer of medicaldevices

through the engineering and lifecycle services

Segment Performance by Region and ProductJapanNet sales percentage

Net sales
Segment profit▶︎Marine Systems

63.1％

5.2% from the
21,926 million JPY （Downsame term last year）
11.0% from the
2,320 million JPY （Upsame term last year）

Sales increased for Terasaki Shore
Connection, but sales for products
intended for container ships and thoseneeded to meet regulations to promoteconservation of marine environments
declined.

▶︎Industrial Systems

Sales increased for projects involving
domestic plants and products related
to distributed power supplies such asco-generation systems, although there
was decline in sales for projects
involving overseas plants.

Asia
Net sales percentage

Net sales
Segment profit▶︎Marine Systems

23.9％▶Medical Devices

S a l e s i n c r e a s e d f o r C O V I D -19 t e s t - r e l a t e dequipment, although there was decline in sales for
products involving capital investments in medical
devices and clinical testing devices.

▶Engineering & Lifecycle Services

Sales remained stable for projects needed to meetthe regulations to promote conservation of marineenvironments, but sales for engineering related toindustrial systems declined.

▶Circuit Breakers

Sales decreased because capital investments inJapan were sluggish and economic activities wererestricted due to the COVID-19 pandemic.

13.3% from the
8,296 million JPY （Downsame term last year）
42.0% from the536 million JPY （Downsame term last year）

Sales increased slightly despite restrictions on economic activities due to the COVID-19
pandemic.

▶Engineering & Lifecycle Services

Sales decreased substantially because the restrictions on overseas travel continued due to theCOVID-19 pandemic.

▶Circuit Breakers

Sales decreased substantially because operations in Malaysia were forced to stall and economic
activities in South-East Asia were restricted due to the COVID-19 pandemic.

EuropeNet sales percentage

Net sales
Segment profit

13.0％▶Circuit Breakers

12.8% from the4,501 million JPY （Upsame term last year）
7.1% from the255 million JPY （Upsame term last year）

Sales remained stable for products destined for the U.K., the Middle East and Europe.

▶Engineering & Lifecycle Services

Sales were sluggish because of restricted overseas travel due to the COVID-19 pandemic.

By Product Group
System Products
Net sales

20,070 million JPY

Circuit Breaker Products
Net sales

Orders received

21,041 million JPY（Down 3.1% from the same term last year）

CircuitBreakerProducts

14,653 million JPY

42.2 %（Down 8.3% from the same term last year）

Net sales
percentage by
product group（Up 6.1% from the same term last year）

17,218Order backlog
million JPY（Up 971 million JPY from the end of thelast consolidated financial year）（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

57.8%

Consolidated Financial Highlights
Net sales

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

40,00035,311（Units: Million JPY）

36,70034,72430,000

2,000

1,342

20,0001,000

10,00002018
FY2019FY（Units: Million JPY）

3,000

2,832

2,500

1,923

1,500

500
0156.202018
FY2019FY02020FY

168.29100.362018
FY2,411

2,297

86.6

6.662019
FY02020FY

Equity ratio(Units: JPY)

300

（Units: %）

250
200

1,307

1,000

1,000

2,192

2,035

2,000

1022018
FY

Proﬁt attributable to owners of the company
Proﬁt per share（Units: Million JPY）

（Units: %）4

Profit attributable to owners ofthe company /Profit per share

2,998

Operating proﬁt ratio

3.802020
FY

Recurring profit

2,000Operating proﬁt

3,000

71.7
67.1

67.1

2018
FY2019FY

150100502019
FY

2020
FY02020
FY

Consolidated Financial Statements
Consolidated Balance Sheets
2019FY（As of 31 March 2020）（Units: Million JPY）

2020FY2019FY（As of 31 March 2021）

Net sales［Assets］
Current assets

33,342

34,070Non-current assets

13,425

14,502

Property, plant and equipment

9,389

9,651

129

109

Intangible assets
Investments and other assets

3,907

4,742

Total Assets

46,767

48,573［Liabilities］
Current liabilities

11,763

10,627

Non-current liabilities

3,565

3,088

Total Liabilities

15,32813,716

31,27933,159

Capital stock

1,236

1,236

Capital surplus

2,244

2,244

Retained earnings

27,79929,679Treasury stock, at cost

△1△1

Accumulated other comprehensive income

124

1,659

Non-controlling interests

3437

Total Equity

31,43934,856

Total Liabilities and Equity

46,767

48,573［Equity］
Shareholders' equity

Consolidated Statements of Income （Units: Million JPY）

（Note）Monetary amounts are rounded off to one million JPY.

Cost of sales
Gross profit
Selling, general and administrative expenses

1 April 2019
（Fromto 31 March 2020）

36,7002020FY

1 April 2020
（Fromto 31 March 2021）

34,72426,45924,990

10,241

9,733

7,829

7,436

2,411

2,297

Non-operating income553

801

Non-operating expenses

131

100

Operating profit

Recurring profit

2,8322,998

Extraordinary income

803Extraordinary loss

117

0Profit before income taxes

2,795

3,000

Income taxes - Current

689

774

Income taxes - Deferred71

30

Profit for the period

2,034

2,196

Profit（loss）attributable tonon-controlling interests△13

Profit attributable to owners of the company

2,035

2,192

Consolidated Statements of Cash Flows （Units: Million JPY）
2019FY

Cash flows from operating activities

1 April 2019
（Fromto 31 March 2020）

2,047

2020FY

1 April 2020
（Fromto 31 March 2021）

3,420

Cash flows from investing activities

△929

△928

Cash flows from financing activities△839△1,181

Effect of exchange rate changes
on cash and cash equivalents△474542

Net increase（decrease）in cash and cash equivalents

△195

1,853

Cash and cash equivalents at beginning of year

11,368

11,172

Cash and cash equivalents at end of year

11,172

13,025

Topics"Sakura Leader", a PCTC equipped with Terasaki' s
TERANET50X received the Ship of the Year 2020 award
In May 2021, Sakura Leader, a pure car truck carrier (PCTC) owned by Nippon Yusen Kaisha (NYK),
equipped with TERANET50X, was given the Ship of the Year 2020 award by the Japan Society of Naval
Architects and Ocean Engineers, for its“ALL-JAPAN”co-operation in terms of reducing GHG emissions.

Photo courtesy: NYK

Sakura Leader is the first large LNG (liquefied natural gas) fuelled vessel to be constructed in Japan. It was built by bringing
together the essence of the latest shipbuilding technologies through the co-operation of a number of marine equipment
manufacturers as well as Japanese shipbuilding company. This ship was selected by the Ministry of Environment and the Ministryof Land, Infrastructure, Transport and Tourism as a model project that reduces CO₂ emissions from ships during voyages bymaking use of an alternative fuel. It is a next-generation eco-friendly ship that makes it possible to substantially reduce thedischarge of such air pollutants as SOx and NOx as well as CO₂, compared with conventional ships that use heavy oil as fuel.
Thanks to automatic control systems, our TERANET50X contributes greatly to saving energy and reducing crew work-loads on
the ships, in addition to its main functions of monitoring and controlling the main engine and generators. Furthermore, our TMIP,
on-board data platform, enables the collection and storage of a variety of data during voyages over long periods of time.
We will continue to play our role, as a key marine systems provider that contributes to the sustainable development of thewhole shipping industry, by providing products and services that are useful for improving ship navigation, operations, controls,
safety and economy, as well as for promoting the conservation of the marine environment.

TERANET50X -Integrated Control & Monitoring System-

TMIP -On-board Data Platform-

data storage functions, which enables users to share data using a variety of applications.

various systems on-board ships.

Currently already installed on many energy-saving ships, the TERANET50X system

This system contributes to data utilization

contributes greatly to the protection of the marine environment by bringing a ship everand improves the operating efficiency ofcloser to its optimal operating efficiency.

ships' monitoring and control systems.

TERANET50X is the ship-to-shore information sharing platform with communication andTMIP collects and stores the data fromCorporate Information /Stock Information（As of 31 March 2021）
Corporate ProfileSharesCompany 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

1,999（Consolidated）

Major Shareholders
Shares owned

Share

Terasaki Co., Ltd.

2,200

16.89

Taizo Terasaki

1,129

8.66

Terasaki Trust Co., Ltd

866

6.64

Kaori Aramaki

738

5.66

The Master Trust Bank of Japan, Ltd.

736

5.65

Yuzo Terasaki

677

5.19

Hozansha Co., Ltd.

653

5.01

Terasaki Employee Stock Ownership

651

5.00

Terasaki Kyoeikai

531

4.07

Arc Ltd.

400

3.07

Shareholder

558（Non-consolidated）
Consolidated Subsidiaries

Domestic: 5, Overseas: 8

Director ＆ Executive Officer（As of 29 June 2021）
President

Taizo Terasaki

Director
Senior Managing
Executive Officer

Kazunobu Kumazawa Disclosure, General

Business Planning, R&D,Affairs

Director
Managing
Executive Officer

Junji Nagase

Accounting & Finance,
Information System
Department

Director
Managing
Executive Officer

Masao Nishida

Marine, Industrial
Department
System Division

Director
Executive Officer

Shunji Okada

Director
Executive Officer

Yoshihiro Umemoto Circuit Breaker Division

Director
Executive Officer

Hirofumi Kobayashi

Director
Executive Officer

Kazuhiro Yoshikawa Medical Device

Engineering, Life Cycle

Sales and Marketing
Circuit Breaker Division

Director
Audit & Supervisory Makoto Suto
Committee Member

871（1,000 shares）（％）（Note）Share percentages are calculated without treasury stock（1,021 shares）.

Distribution by Shareholders

Distribution ofshareholders871

Director
Audit & Supervisory
Kunio Chiyoda
Committee Member(External)
Director
Audit & Supervisory
Shunji Takano
Committee Member(External)* Treasury stock is included in individual investor and others.

Executive Officer

Syujiro Hamano

General Affairs
Department

Executive Officer

Masaji Nishino

Chief Audit Executive
Internal Audit Section

Sharesdistribution

13,030thousand shares* Treasury stock（1,021 shares）is included in individual investor andothers.

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