Financial Results
for the Third Quarter FY2024(April 1, 2023 to December 31, 2023)

February 2, 2024
IDEC CORPORATION
Securities code：6652
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1

Financial Results for the Third Quarter■Net Sales
Net
Sales

JPY 54.3 billion (YoY-15.2％)– EMEA sales increased due to the impact of yen depreciation and strong salesof control switches.
– Japan decreased due to customers’ sluggish export demand and the impact
of inventories.
– Decreased in the Americas and Asia-Pacific due to economic slowdown anddistribution inventory adjustments.

■Operating Income JPY 4.7 billion (YoY-59.3％)■Ordinary Income JPY 5.1 billion (YoY-56.6％)
IncomeJPY 3.4 billion (YoY-57.0％)■Net Income– Income decreased due to the impact of lower sales and lower capacity utilization.

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2

Summary of theThird Quarter Financial Results

Copyright IDEC Corporation. All rights reserved.

CONFIDENTIAL

3

Consolidated performance [Consolidated income statement] -1(Unit: million yen)
*Round down to the millions

FY2023 Cumulative 3Q
ActualSales Ratio

FY2024 Cumulative 3Q
ActualYoY

Sales Ratio

Net sales

64,107100.0%

54,341100.0%-15.2%

Gross income

28,75644.9%

23,30242.9%-19.0%

SG&A

17,32527.0%

18,65234.3%+ 7.7%

Operating income

11,431

17.8%

4,650

8.6%

-59.3%

Ordinary Income

11,664

18.2%

5,062

9.3%

-56.6%Net income attributable toowners of parent company

7,999

12.5%

3,437

6.3%

-57.0%

Earnings per share(EPS)(before diluting) (JPY)275.01－

117.16－-157.85

USD-yen rate (JPY)136.52143.33+ 6.81

EUR-yen rate (JPY)

136.05155.31+19.26

CNY-yen rate (JPY)

19.88

19.98

+ 0.10*From this 1Q, APEM Group changed its fiscal year end from December 31 to March 31 for the preparation of consolidated financial statements.
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Changing factors of consolidated operating income
Despite positive effects of price revisions, operating income declined approx. 6.8
billion yen YoY due to the significant impact of lower sales, a decline in high-margin
Japanese sales, and a worsening cost of sales ratio due to lower capacity utilizationand other factors.
-5,140(unit: million yen) *Round down to the million+1,34011,431Sales
decrease

FY2023 3Q
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-2,600-480Price Revision
Cost rate
decrease

SG&A
increase

＋100
Forex
impact4,650
FY2024 3Q
5Consolidated performance [Consolidated income statement] -2
Sales and income both fell sharply due to distribution inventory adjustmentsin each region and the impact of sluggish demand in key industries.
FY2023(Unit: million yen)
*Round down to the millions

3Q (Oct.to
Dec.)
Actual

Sales
ratio

FY20244Q (Jan.to Mar.)
Actual

Sales
ratio

1Q (Apr.to Jun.)
Actual

Sales
ratio

2Q (Jul.to Sep.)
Actual

Sales
ratio

3Q (Oct.to Dec.)
Actual

Sales
ratio

YoY

Net sales

20,92
100.0%
7

19,761 100.0%

18,180 100.0%

19,620 100.0%

16,540 100.0% -21.0%

Gross income

9,750

46.6%

8,620

43.6%

7,900

43.5%

8,553

43.6%

6,848

41.4% -29.8%

SG&A

5,878

28.1%

5,990

30.3%

6,235

34.3%

6,172

31.5%

6,244

37.8% + 6.2%

Operating income

3,871

18.5%

2,629

13.3%

1,665

9.2%

2,381

12.1%

603

3.6% -84.4%

Ordinary income

3,523

16.8%

2,738

13.9%

2,022

11.1%

2,507

12.8%

532

3.2% -84.9%

Net income attributableto owners of parent company

2,305

11.0%

2,145

10.9%

1,467

8.1%

1,706

8.7%

263

1.6% -88.6%

Earnings per share(EPS)(before diluting) (JPY)

79.03

－

73.31

－

－

58.14

－

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50.16

8.86

－

-70.17
6

Sales by regions(Unit: million yen)

FY2023Cumulative
3Q

FY2024
Cumulative
3Q

Japan

25,894(40.4%)

20,253(37.3%)-21.8%

Overseas

38,213(59.6%)

34,087(62.7%)-10.8%

Americas12,014(18.7%)

10,490(19.3%)

10,113(15.8%)

11,447+13.2%(21.1%)

16,085(25.1%)

12,149(22.3%)-24.5%

64,107(100.0%)54,341(100.0%)-15.2%*Round down to themillions(Sales ratio)

EMEA(Europe, Middle East,
Africa)Asia Pacific
Total

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YoY

Japan
◼

Sales decreased due to a standstill in majorindustries and the impact of an adjustment
phase in distribution inventories.

Overseas-12.7%

YoY -21.8%

YoY -10.8%◼

In the Americas, sales decreased due tosluggish demand and the impact of distribution
inventory adjustments.

◼

In EMEA, sales continued to grow due to theimpact of yen depreciation as well as strong
sales in the flagship HMI business.

◼

In Asia Pacific, sales decreased due to theimpact of economic slowdown in China andSoutheast Asia.

7

Sales by regions (per quarter transition)

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Sales by products
FY2023Cumulative
3Q

FY2024
Cumulative
3Q

YoY

Industrial Switches

27,300(42.6%)

25,279(46.5%)- 7.4%

Industrial Relays &Components

12,206(19.0%)

8,641(15.9%)-29.2%

Automation & Sensing

7,577(11.8%)

7,648(14.1%)＋ 0.9%

Safety & Explosion
Protection

12,489(19.5%)

8,735(16.1%)-30.1%

Systems

3,577(5.6%)

2,993(5.5%)

Instead of the impact of economic slowdown in China, steadysales of programmable logic controllers for the Americas due toimproved delivery time of electronic components.

-16.3%

Safety & Explosion Protection

Others957(1.5%)

1,042(1.9%)+ 8.9%

Decrease in safety-related equipment due to economic
slowdown mainly in China and lower demand in semiconductor
and machine tool industries.

64,107(100.0%)54,341(100.0%)-15.2%(Unit: million yen)
*Round down to the millions(Sales ratio)

Total*The classification by product partially changed from FY2023.

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HMI (Human-Machine Interface)
While operator interfaces expanded, sales of flagship switches
decreased due to distribution inventory adjustments in Japan,
the Americas and Asia-Pacific, and lower demand insemiconductors and machine tools industries.

Industrial Relays & Components
Sales of control relays decreased in main China.

Automation & Sensing

Systems
Decrease in control panels for semiconductor manufacturing
and logistic-related equipment in Asia Pacific.

9

Sales by products (per quarter transition)

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10Orders received(Unit: million yen)
*Round down to the millions

FY2023 Cumulative 3Q
Amount oforders received

Backlog

FY2024 Cumulative 3Q
Amount oforders received

YoY

Backlog

YoY

Japan

28,317

17,057

17,295-38.9%

7,012-58.9%

Americas13,094

6,038

8,305

-36.6%

2,771-54.1%

EMEA

11,431

8,531

10,647- 6.9%

8,641 + 1.3%

Asia Pacific

9,236

4,211

7,520

-18.6%

3,058-27.4%

Total

62,07935,83843,768-29.5%

21,485-40.1%(Europe, Middle East, Africa)

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11Orders received (per quarter transition)◼ Orders continue to decline in Japan, the Americas, and Asia Pacific, where the impact of
distribution inventory adjustments continues.
◼ The distribution inventory has decreased in the Americas and orders are expected toincrease slightly through 4Q in Asia Pacific.
FY2023(Unit: million yen)
*Round down to themillions

3Q (Oct.to Dec.)

FY20244Q (Jan.to Mar.)

Ordersreceived

Backlog

Ordersreceived

Backlog

Japan

8,736

17,057

6,193

Americas

3,703

6,038

3,457

Asia Pacific
Total

EMEA

(Europe, Middle East,

1Q (Apr.to Jun.)
Ordersreceived

2Q (Jul.to Sep.)

3Q (Oct.to Dec.)

Backlog

Ordersreceived

Backlog

Ordersreceived

Backlog

13,5146,550 12,329

5,757

9,140

4,986

7,012

2,668

4,972

2,681

3,863

3,067

3,233

2,555

2,771

8,531

3,683

8,975

4,164

9,947

3,237

9,340

3,245

8,641

2,588

4,211

2,924

4,085

2,257

3,392

2,745

3,005

2,516

3,058

18,48635,83815,47031,547

15,655 29,532

14,80824,720 13,305 21,485

Africa)Copyright IDEC Corporation. All rights reserved.

12

Consolidated performance [Consolidated balance sheet]
Highlights of assets

Highlights of liabilities

Highlights of net assets◼ Total assets increased by approx. 3.1
billion yen from the end of the previous
period, mainly due to increases in fixed
assets, inventories, despite a decreasein cash and deposits.

◼ Liabilities decreased by approx. 0.8 billion
yen from the end of the previous fiscal
year, mainly due to decreases in trade
payables and accrued corporate tax,
despite an increase in loans payables.

◼

(Unit: million yen)
*Round down to the millions

FY2023(previous FY)

FY2024(end of December)

Net assets increased by approx.
3.9 billion yen from the end of theprevious fiscal year, mainly due toan increase in foreign currencytranslation adjustments.

YoY

Current assets

54,51856,106+1,588Fixed assets

49,71751,273+1,556

Current liabilities

32,05931,533-525

Fixed liabilities

13,362

13,130-232

Net assets

58,81362,716+3,902

Total assets

104,235

107,380+3,144Equity ratio

56.1%

58.0%

＋1.9%

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Consolidated performance [Consolidated cash flow statement]
Cash Flows by operation activities

Cash Flows by investing activities◼ Approx. 2.2 billion yen due to payment ofcorporate taxes, decrease trade payables,
increase in inventories, etc.

◼ While there was income from refund of time
deposits, acquisition of fixed assets and otherexpenditures amounted to approx. -1.2 billion
yen.

Cash Flows by financing activities◼ It was approx. -1.4 billion yen due
to repayment of borrowings andexpenses including dividends

YoY

FY2023 Cumulative 3Q

FY2024 Cumulative 3Q

CF from operating activities

3,912

2,186

-1,725

CF from investing activities-2,628-1,162+1,465

Free cash flows (FCF)

1,283

1,023

-259

CF from financing activities-3,736-1,429+2,307

Cash and cash equivalents at end of year

13,01915,167+2,147

Capital expenditure

3,057

2,233

-823

Depreciation and amortization expense

2,621

2,918

+296

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Impact of cyber attacks
On October 31, 2023, unauthorized access by a third party was confirmed, andvarious measures were taken.
As a result of the breach investigation, it was confirmed that there was no
information leakage.
◼ After confirming unauthorized access, servers that might be affected were stopped and the network
was shut down.
Data was encrypted due to ransomware execution, which limited the use of the business system
and we implemented recovery measures.
◼ Information security measures expenses of 62 million yen were recorded as an extraordinary loss
in the third quarter due to the business system outage. In addition, there has been an impact onsales activities and sales orders (lost sales: approx. 1% of annual sales). It is assumed that
insurance will be used to cover the cost in the future.
◼ Results of breach investigation by outside experts show no information leakage.
We will promote measures to strengthen the information security environment in cooperation
with outside experts.
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15

Introduction of New Products

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16

IDEC Group’s New Concept “HMI-X”◼ HMI-X is defined as a change in the optimal interface
accompanying changes in the relationship between people
and machines◼ We will take the lead on HMI-X by providing society
with products and services that combine the HMI andsafety that we have cultivated over the years, contributing
to the realization of well-being for a diverse range ofstakeholders

Control in a environment where
people and machines are isolated
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Control in an environment where
human and machine collaborate
17

Products leading HMI-X◼

◼

IAT sensor

RFID readers that enable restrictions on theuse of machines, on entry into control rooms
and fences, on managing the operation
history of devices, etc.

◼

Emergency-stopassist systems◼

◼

Touchless switches tomeet contactless needs

Controller with
operator interface◼
◼

ez-Wheel safety wheel drivefor AGVs, AMRs, etc.
◼

◼

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ANSHIN sensor

Compact IoT
devices for remotemonitoring

Safety commanders that allow
emergency-stop switches andenabling switches to easily be
installed on commercial tablets18

Controller with 0perator interface◼

◼

Global launch of the FT2J, which integrates a 7.0-inch operator interface andprogrammable controller (PLC) to achieve significant space savings, in December
2023.
Environmentally-friendly product design realized energy saving by approx. 40%
compared to the use of PLC and operator interface simultaneously.

Controller with Operator Interface“FT2J”
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Requires only one-third the depth of a PLC and operator
interface combined, making it suitable for use in tight spaces.
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Emergency-stop assist system◼

A system that enables wireless remote control of emergency-stop switches on AGVs,
AMRs, and other automated guided vehicle robots will go on sale in January 2024 (sales will
gradually begin overseas from April).

A：Wireless switchtransmitter

B：Wireless switch
receiver

C：Emergency stop
pushbutton switch with
operation support
function
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“Emergency-stop assist system“
consisting of three devices, A, B, and C.

20

Examples of solutions for AGVs and AMRs◼

Strengthening the development of solutions for AGVs and AMRs as the introduction of AGVs
and AMRs is accelerating in the logistics and manufacturing industries.
Emergency-stopassist system

Controlswitches
Touchlessswitches

Safety commanders
RFID
readers

Illuminated buzzer

LED
indicator

Emergency stop
switches

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Controller with operator
interfaces

Safety laser
scanners

Safety edge
switches

Safety wheel drive21References

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22

External Evaluations◼ Selected for FTSE indexes for the second consecutive year following 2022.
◼ In 2024, selected as a component of the Morningstar Japan ex-Reit Gender Diversity Tilt
Index as "Group 1", the highest rating out of five levels.
◼ Selected for the S&P/JPX Carbon Efficient Index as well as the JPX Nikkei Small and Mid
Cap Index.

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Forecast for the FY2024
FY2023(Unit: million yen)
※Round down to themillions

FY2024

ActualSales Ratio

Initialforecast

Sales Ratio

Net sales

83,869100.0%

81,000100.0%

75,000100.0%-10.6%

Gross income

37,37644.6%

38,50047.5%

33,55044.7%-10.2%

SG&A

23,31527.8%

24,70030.5%

24,900

33.2%

+6.8%

Operating income

14,06016.8%

13,800

17.0%

8,650

11.5%

-38.5%

Ordinary Income

14,40317.2%

13,800

17.0%

9,150

12.2%

-36.5%Net income attributable toowners of parent company

10,144

12.1%

9,500

11.7%

6,350

8.5%

-37.4%

348.37ー

326.23ー

216.62ー-131.75

Earnings per share(EPS)(before diluting) (JPY)

USD-yen rate (JPY)EUR-yen rate (JPY)CNY-yen rate (JPY)
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135.51138.15
19.75

130
140
18.50

Revised
Forecast

Sales Ratio

143.16154.23
19.73

YoY

+7.65
+16.08-0.2
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Consolidated business forecast for FY2024(Unit: million yen)
*Round down to the millions

FY2023
ActualFY2024
InitialForecast

Revisedforecast

YoY

HMI

35,76036,20034,800-2.7%

Industrial Relays & Components

15,476

13,90012,000-22.5%

Automation & Sensing

10,327

10,20010,900＋5.5%

Safety & Explosion Protection

16,282

15,70012,500-23.2%

Systems

4,848

4,000

3,600

-25.7%

Others

1,174

1,000

1,200

＋2.2%

83,86981,00075,000-10.6%

Domestic sales

34,51933,30028,100-18.6%

Overseas sales

49,34947,70046,900-5.0%（58.8%）（58.9%）（62.5%）

Total(Ratio of overseas sales)

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25

FY2024 exchange rate and exchange rate sensitivity

Currency

Exchange
assumption

Effect by 1 yen change of exchange rate
*For CNY, effect by 0.1 yen change
Net sales

Operating income

USD

JPY143.16

Approx. 70 mil. yen

Approx. 10 mil. yen

EUR

JPY154.23

Approx. 140 mil. yen

Approx. 10 mil. yen

CNY

JPY19.73

Approx. 40 mil. yen

Approx. 20 mil. yen

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Industry Trend (Transition of shipment data of NECA*)*Nippon Electric Control Equipment Industries Association

Transition of the industrial shipment and YoY status (between October 2020 and December 2023)（Unit: million yen)

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27

Sales classification by segment
Industrial
Switches・Industrial switches
・Joysticks
・Pilot lights
・Operator interfaces

Industrial Relays &Components

Automation &Sensing・Switching power supplies
・Terminal blocks
・Industrial relays/sockets
・Circuit protectors
・LED illumination units

・Programmable logic
controllers
・Sensors
・Automatic identification
devices

Safety & Explosion
Protection
・Safety-related products
・Explosion protection
products

Systems
・Collaborative robot systems
・Interface complex systems
・Security systems
・Other various systems

Others・Environmental energyrelated business

APEM products

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28

This material contains our plans and performance forecast, which we have planned and expected inaccordance with available information as of February 2, 2024.
Therefore, actual performances may vary from aforementioned plans and expected values due tounforeseeable events and factors. The original language is Japanese in financial results materials. The
English version is translated into the original Japanese version. In the case of any discrepancy
between the English translation and the Japanese original, the latter shall prevail.

IDEC CORPORATION
Strategic Planning Head Quarter
TEL ：+81-6-6398-2505
FAX ：+81-6-6398-2587
E-mail : yasuyuki.ogawa@idec.com

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29