Financial Results
for the First Quarter FY2023(April1, 2022 to June 30, 2022)

August 4, 2022
IDEC CORPORATION
Securities code：6652
Copyright IDEC Corporation. All rights reserved.

1

Overview of consolidated financial results

Record quarterly sales, operating income andoperating income margin (15.6%)!
Net
Sales

Income■Net Sales

JPY20.2 billion (YoY+16.7%)– Sales growth in main businesses, centered on switch business and safety/explosion
protection business, both in Japan and overseas.
– Minor impact of lockdown in Shanghai, China.

■Operating Income■Ordinary Income■Net Income*

JPY3.2 billion (YoY +37.1%）
JPY3.6 billion (YoY +46.2%）
JPY2.6 billion (YoY +42.0%）*Net income attributable to owners of parent company– In addition to the effect of increased income, the impact of higher raw material prices wasabsorbed by optimizing sales prices.
– Achieved significant increased income by contributions of decreased SG&A ratio and theeffect of weak yen.
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Consolidated performance [Consolidated income statement] -1(Unit: million yen)
※Round down to the millions

FY2022 1Q
ActualFY2023 1Q

Sales Ratio

ActualYoY

Sales Ratio

Net sales

17,270100.0%

20,157100.0%+16.7%

Gross income

7,300

42.3%

8,629

42.8%

+18.2%

SG&A

4,999

28.9%

5,476

27.2%

+9.5%

Operating income

2,300

13.3%

3,153

15.6%

+37.1%

Ordinary Income

2,436

14.1%

3,562

17.7%

+46.2%Net income attributable toowners of parent company

1,799

10.4%

2,555

12.7%

+42.0%

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

60.01

－

88.09

－

+28.08

USD-yen rate (JPY)109.52129.73+20.21

EUR-yen rate (JPY)127.80130.40+2.60

CNY-yen rate (JPY)

16.96

19.60

+2.64

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Changing factors of consolidated operating income
Operating income increased by approximately 0.85 billion yen YoY due to theeffect of increased sales, product mix and impact of weak yen, etc.
(unit: million yen) *Round down to the million

+840

+90
Cost rate
decrease

-280

＋200

SG&A
increase

Impact ofexchange

Sales
increase

3,153
2,300

FY2022 1Q
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FY2023 1Q
4

Consolidated performance [Consolidated income statement] -2
FY2022

FY2023(Unit: million yen)
※Round down to themillions

1Q (Apr.to Jun.)
Actual

Sales
ratio

2Q (Jul.to Sep.)
Actual

Sales
ratio

3Q (Oct.to Dec.)
Actual

Sales
ratio

4Q (Jan.to Mar.)
Actual

Sales
ratio

1Q (Apr. to Jun.)
Actual

Sales
ratio

YoY

Net sales

17,270 100.0%

17,585 100.0%

17,399 100.0%

18,533 100.0%

20,157100.0%+16.7%

Gross income

7,300

42.3%

7,619

43.3%

7,514

43.2%

7,876

42.5%

8,629

42.8%

+18.2%

SG&A

4,999

28.9%

5,066

28.8%

5,173

29.7%

5,398

29.1%

5,476

27.2%

+9.5%

Operating income

2,300

13.3%

2,552

14.5%

2,340

13.5%

2,477

13.4%

3,153

15.6%

+37.1%

Ordinary income

2,436

14.1%

2,586

14.7%

2,468

14.2%

2,906

15.7%

3,562

17.7%

+46.2%

1,799

10.4%

1,727

9.8%

1,776

10.2%

2,592

14.0%

2,555

12.7%

+42.0%

60.01

－

57.58

－

59.22

－

89.37

－

88.09

－

Net income attributableto owners of parent
company
Earnings per
share(EPS)(before diluting) (JPY)

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5

Net sales and operating income margin (per quarter transition)(Unit: million yen) *Round down to the millions

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6

Sales by regions(Unit: million yen)

FY2022 1Q

FY2023 1Q

Japan

7,343
(42.5%)

8,319(41.3%)+13.3%

Overseas

9,926(57.5%)

11,837(58.7%)+19.3%

Americas2,715(15.7%)

3,457(17.2%)+27.3%

2,975(17.3%)

3,314(16.4%)+11.4%

4,234(24.5%)

5,065(25.1%)+19.6%

17,270(100.0%)20,157(100.0%)+16.7%*Round down to the millions(Sales ratio)

EMEA(Europe, Middle
East, Africa)

Asia Pacific
Total

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YoY

Japan

YoY

+13.3%

 The demand of semiconductor-related,
automobile-related, machine tools androbotics industries, etc. has moved firmly
following previous quarter, and the sales
increased.

Overseas

YoY+19.3%

 In Americas and EMEA, demand has
continued in high level, and the sales
increased with the effect of weak yen.
 The impact of lockdown in Shanghai, China
was limited, and the demand of other Asian
regions has moved firmly.

7

Sales by regions (per quarter transition)(Unit: million yen) *Round down to the millions

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8

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

FY2023 1Q

Industrial Switches

8,115(47.0%)

9,724(48.2%)+19.8%

Industrial Relays &Components

3,264(18.9%)

4,002(19.9%)+22.6%

Automation & Sensing

2,499(14.5%)

2,578(12.8%)+3.1%

The demand for operator interfaces and programmable logic
controllers has still moved in Japan, Americas, and EMEA.

Safety & Explosion
Protection

2,085(12.1%)

2,577(12.8%)+23.6%

Safety & Explosion Protection

Systems

901(5.2%)

950(4.7%)+5.5%403(2.3%)

323(1.6%)-19.9％

17,270(100.0%)20,157(100.0%)+16.7%(Sales ratio)

OthersTotal

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YoY

Industrial Switches

FY2022 1Q

Sales expanded in all global regions due to the rapid expansionof the demand for capital investment.

Industrial Relays & Components
Sales of control relays increased in main Americas and China.

Automation & Sensing

The demand for safety-related devices significantly expanded
in Japan and China mainly.

Systems
Sales of control panels for semiconductor and logistic-related
equipment increased in Japan.

OthersSales of environment and energy-relating business decreased inJapan.
9

Sales by products (per quarter transition)(Unit: million yen) *Round down to the millions

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10Orders received
 The overall orders received have remained in almost same level, and have maintained in high level.
 In Americas, orders received increased based on the strong market environment.

FY2022 1Q(Unit: million yen)
*Round down to the millions

Amount oforders received

FY2023 1Q

Backlog

Amount oforders received

YoY

Backlog

YoY

Japan

11,257

8,941

11,057-1.8%

19,875+122.3%

Americas

3,530

2,537

4,874

+38.1%

6,405+152.4%EMEA(Europe, Middle East, Africa)

3,891

4,309

3,555

-8.6%

7,428

+72.4%

Asia Pacific

4,114

3,939

3,746

-9.0%

7,232

+83.6%

Total

22,795

19,72823,233+1.9%

40,942+107.5%

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11Orders received (per quarter transition)
In Asia Pacific, orders received of 1Q decreased due to the impact of the Shanghai lockdown anda reactionary drop from the increase in demand in China in February to March prior to the productprice revision (on a recovery trend after June).
FY2022(Unit: million yen)

FY2023

1Q (Apr. to Jun.)

2Q (Jul. to Sep.)

3Q (Oct. to Dec.)

4Q (Jan.to Mar.)

1Q (Apr. to Jun.)

Ordersreceived

Backlog

Ordersreceived

Backlog

Ordersreceived

Backlog

Ordersreceived

Backlog

Ordersreceived

BacklogJapan

11,257

8,941

11,712

12,448

12,204

16,06911,12918,048

11,057

19,875

Americas

3,530

2,537

3,875

3,520

3,547

4,459

3,688

5,060

4,874

6,405

3,891

4,309

4,613

5,923

2,677

5,853

3,730

6,708

3,555

7,428

4,114

3,939

4,350

4,801

4,003

5,345

6,125

8,048

3,746

7,232

22,795

19,72824,551

26,694

22,432

31,727

24,67337,86623,23340,942*Round down to themillions

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

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12Orders received (per quarter)(Unit: million yen) *Round down to the millions

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13

Consolidated performance [Consolidated balance sheet]
Highlights of assets
 Althoughcashanddepositdecreased, inventory assets andtrade receivables increased. So, total
assets increased by 2.88 billion yen
compared to the end of previous FY.
(Unit: million yen)
*Round down to the millions

Highlights of liabilities

Highlights of net assets

 While trade payables increased,
income tax payable, etc. decreased.
So, total liabilities decreased by 0.43
billion yen compared to the end of
previous FY.

 Due to the increased of earned
surplus and foreign currencytranslation adjustment, net assets
increased by 3.31 billion yen
compared to the previous FY.

FY2022(previous FY)

FY2023(end of June)

YoY

Current asset

47,171

48,960+1,789Fixed asset

47,78948,879+1,089Current liabilities

21,66021,208-452

Non-current liabilities

24,291

24,313+ 21

Net assets

49,00852,318+3,310Total assets

94,96097,840+2,879

Shareholders’ equity ratio

51.2%

53.1%

+1.9%

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14

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

Cash Flows by investing activities

Cash Flows by financing activities

 It was -0.16 billion yen decreased byapproximately 2.28 billion yen YoY due to theincreased inventory assets and the increased
payment of income tax, etc. involved withsignificant increased income in the previous year.

 Due to the acquisition of fixed
assets, etc., it was -0.6 billion yen
decreased by approximately 0.32
billion yen of expenses YoY .

 It was -1.92 billion yen due torepayment of borrowings andexpenses including dividends.

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

FY2022 1Q

FY2023 1Q

YoY

CF from operation activities

2,126

-158

-2,284

CF from investing activities

-924

-602

+321

Free cash flows (FCF)

1,201

-760

-1,962

CF from financing activities-1,451-1,917-466

Cash and cash equivalents at end of period

14,826

13,039-1,786

Capital expenditures

522

772

+250

Depreciation and amortization

800

841

+40

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15

Forecast for FY2023

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16

Consolidated business forecast for FY2023
 No amendment of business forecast
FY2022(Unit: million yen)
*Round down to the millions

ActualFY2023

Sales ratio

Forecast

Sales ratio

YoY

Net sales

70,789100.0%

74,500100.0%+5.2%

Gross income

30,31042.8%

32,500

43.6%

+7.2%

SG&A

20,63829.2%

21,700

29.1%

+5.1%

Operating income

9,672

13.7%

10,80014.5%+11.7%

Ordinary income

10,39814.7%

10,800

14.5%

+3.9%

7,896

11.2%

7,500

10.1%

-5.0%

ー

250.88ー

Net income attributable toowners of parent company

Earnings per share(EPS)(before diluting) (JPY)
USD-yen rate (JPY)EUR-yen rate (JPY)CNY-yen rate（JPY）
Copyright IDEC Corporation. All rights reserved.

264.12112.40129.91
17.51

120
130
18.5

+7.60
+0.09
+0.99
17

Consolidated business forecast for FY2023(Unit: million yen)

FY2022

FY2023*Round down to the millions

ActualForecast

YoY

Industrial Switches

33,19135,500+7.0%

Industrial Relays & Components

13,625

14,500+6.4%

Automation & Sensing

9,958

9,100

-8.6%

Safety & Explosion Protection

8,908

9,800

+10.0%

Systems

3,742

4,500

+20.2%

Others

1,363

1,100

-19.3%

70,78974,500+5.2%

Domestic sales

30,90432,000+3.5%

Overseas sales

39,88542,500+6.6%(Ratio of overseas sales)

56.3%

57.0%

Total

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FY2023 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

JPY120Approx. 60 mil. yen

Approx. 10 mil. yen

EUR

JPY130Approx. 120 mil. yen

Approx. 15 mil. yen

CNY

JPY18.5

Approx. 50 mil. yen

Approx. 5 mil. yen

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19

Introduction of new products and solutions

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CONFIDENTIAL

20

New Product (1)Φ22 Touchless Switch “CW1H/CW4H type”
 Non-contact, hygienic touchless switches were newly launched to meet the growing need fortouchless measures to prevent infectious diseases.

[Target facilities for mounting] Medical sites, air showers of cleanrooms, and operative parts of food machine with the necessityof considering hygiene.
 Automatic doors and elevators for indoor and outdoor public facilities, ticket machines forparking , etc.
Up to 270 mm

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21

New Product (2)Cloud Data Logger “SG1A type”
 Complicated factors of IoT system are concentrated into one package, which easily enables toachieve monitoring of equipment and devices located remotely
without program.
(joint development with Contec Co., Ltd.） LTE routers, gateways, LTE lines, and cloud infrastructures conventionally required preparation
respectively are unnecessary. It enables to visualize data in approximately ten minutes after
introduction and installation of SG1A type.

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22Collaboration with ez-Wheel
 Products of ez-Wheel (France) with which IDEC had concluded partnership agreement in January 2022
have been proposed according to each customer’s needs, and the number of leads from end users
and assembly manufacturers are increasing.
 Inquiries about "Electric Power Wheel" are often received from automobile-related manufacturers, where heavy loads are oftentransported by human.
 For “Safety Wheel Drive” complied with safety standard ahead of the world, business opportunities for introducing to logistics andproduction lines of manufacturing industries which consider to introduce AMR with safety functions for labor saving and work saving
are proceeding. Currently, testing of products with ez-Wheel’s products has been introduced and verified at two IDEC’s sites inJapan.
1) Amagasaki factory, manufacturing explosion protection products, has introduced carts with electric assist wheels, and has promoted laborsaving and improvement of well-being.
2) At logistic centers, verification of AMR with safety wheel drive has been testing.

Electric Power Wheel (left) and an electric assist cart introduced at IDEC’s Amagasaki factory (right)
Copyright IDEC Corporation. All rights reserved.

Safety Wheel Drive (left) and AMR under testing of verification at
logistic centers (right)

23

Evaluation by Society

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CONFIDENTIAL

24

Evaluation by Society
Selected for FTSE Blossom Japan Index for the first time,
following FTSE Blossom Japan Sector Relative Index First selection for two FTSE indexes in 2022.
 In addition to S&P/JPX Carbon Efficient Index, the IDEC group has been
selected as an index constituent of SOMPO Sustainability Index for two
consecutive years in 2021 and 2022.

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25

(Reference)
Introduction of the Integrated Report

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26

Issuance of the Integrated Report

IDEC Report 2022 (Integrated Report) was published in June 2022, expanding on the contents of
the IDEC Report previously published.
(Reference : https://us.idec.com/media/IDECReport2022-EN.pdf）
By integrating financial and non-financial information systematically, it was edited for wide variety of
stakeholders to understand IDEC’s corporate value creation process and initiatives for achieving
sustainable society comprehensively.

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27

Introduction of the Integrated Report (Extracts)Announced the New Medium-Term Management Plan in May.



By promoting a new concept, HMI-X [Transformation], IDEC will provide products and solutions toaddress customer challenges, helping them to create the optimal environment for humans and machines.

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Introduction of the Integrated Report (Extracts)

Identified the Materiality that corresponds to the content of the new medium-term management plan.
Selected three themes that are of particular significance to the realization of a sustainable society:“Productivity improvement”, “Safety, ANSHIN, well-being”, and “Climate change”.

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29

Introduction of the Integrated Report (Extracts)As the four requirements (governance, strategy, risk management, and metrics and targets) based on
the TCFD recommendations, disclose information relating to the initiatives for climate change inaccordance with the guidance.

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Introduction of the Integrated Report (Extracts)Expand the contents including the governance system, remuneration policy for directors, efforts toevaluate effectiveness of the Board of Directors, and risk management, etc.

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31

References

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32

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

Transition of the industrial shipment and YoY status (between April, 2019 and June, 2022)(Unit: million yen)

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33

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

Industrial Relays &Components

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

・Programmable logic
controllers
・Operator interface
・Photoelectric switches
・Automatic identification
devices

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

Systems

Others・Collaborative robot systems ・Environmental energy・Interface complex systems
related business・Security systems
・Next generation
・Other various systems
agricultural solutions

APEM products

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34

This material contains our plans and performance forecast, which we have planned and expected inaccordance with available information as of August 4, 2022.
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 translationand the Japanese original, the latter shall prevail.

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

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35