Financial Results
for the First Half FY2023(April1, 2022 to September 30, 2022)

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

1

Financial Results for the First Half
Net sales and profit made a new record high in half period,and operating income margin of 17.5% was achieved!
The dividends also increased by JPY15 from the initial forecast, and upwardly revised to JPY65.

Net
Sales

■Net Sales JPY43.2 billion (YoY +23.9%)– Sales including switches and safety/explosion protection businesses mainly increasedin Japan and overseas■Operating Income JPY7.6 billion （YoY＋55.8％）■Ordinary Income JPY8.1 billion （YoY +62.1％）
Income ■Net Income
JPY5.7 billion （YoY +61.4％）– In addition to the effect of increased income, proper sales prices absorbed the impact ofrising prices of raw materials.
Achieved significant increased income by the contribution of the effect of weak yen andimproved gross margin ratio.

Dividend■Interim Dividend JPY65 (YoY +JPY25)

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2

Consolidated performance [Consolidated income statement] -1(Unit: million yen)

※Round down to the millions

FY2022 1H
ActualFY2023 1H

Sales Ratio

ActualYoY

Sales Ratio

Net sales

34,856100.0%

43,180100.0%+23.9%

Gross income

14,91942.8%

19,00644.0%+27.4%

SG&A

10,06628.9%

11,446

26.5%+13.7%

Operating income

4,853

13.9%

7,559

17.5%

+55.8%

Ordinary Income

5,022

14.4%

8,140

18.9%

+62.1%Net income attributable toowners of parent company

3,526

10.1%

5,694

13.2%

+61.4%

Earnings per share(EPS)(before diluting) (JPY)117.58－196.01－＋78.43

USD-yen rate (JPY)109.81134.04+24.23

EUR-yen rate (JPY)129.88134.39+4.51

CNY-yen rate (JPY)

16.99

19.89

+2.90

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3

Changing factors of consolidated operating income
Operating income increased by approximately 2.7 billion yen due to the effectof increased sales, proper sales prices and impact of weak yen, etc.
(unit: million yen) *Round down to the million+2,620+420
Cost rate
decrease

Sales
increase-890
SG&A
increase＋560
Impact ofexchange

7,559

4,853
FY2022 1H
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FY2023 1H
4

Consolidated performance [Consolidated income statement] -1Income ratio improved due to the revision of product prices for specific customers based on
the increase of purchase prices for raw materials
Record high sales and income on a quarterly basis(Unit: million yen)

FY2022

FY2023

3Q (Oct.to Dec.)
Sales
Actualratio

Net sales

17,585 100.0%

17,399 100.0% 18,533 100.0%

20,157100.0%

23,022 100.0% +30.9%

Gross income

7,619

43.3%

7,514

43.2%

7,876

42.5%

8,629

42.8%

10,376

45.1% +36.2%

SG&A

5,066

28.8%

5,173

29.7%

5,398

29.1%

5,476

27.2%

5,970

25.9% +17.8%

Operating income

2,552

14.5%

2,340

13.5%

2,477

13.4%

3,153

15.6%

4,406

19.1% +72.6%

Ordinary income

2,586

14.7%

2,468

14.2%

2,906

15.7%

3,562

17.7%

4,577

19.9% +77.0%

1,727

9.8%

1,776

10.2%

2,592

14.0%

2,555

12.7%

3,138

13.6% +81.8%－

107.92

Net income
attributable to ownersof parent company
Earnings per
share(EPS)(before diluting) (JPY)

57.58

－

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59.22

－

4Q (Jan.to Mar.)
Sales
Actual
ratio

89.37

－

1Q (Apr.to Jun.)
Sales
Actualratio

2Q (Jul.to Sep.)

2Q (Jul.to Sep.)
Sales
Actualratio※Round down to themillions

88.09

Actual

Sales
ratio

－

YoY

+50.34
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)

*Round down to the millions

FY2022
1H

FY2023
1H

YoY

Japan

14,649(42.0%)

17,264(40.0%)+17.8%

Overseas

20,206(58.0%)

25,916(60.0%)+28.3%

Americas5,725(16.4%)

7,731(17.9%)+35.0%

5,972(17.1%)

6,929(16.0%)+16.0%

Asia Pacific8,509(24.4%)

11,255(26.1%)+32.3%

Total

34,856(100.0%)43,180+23.9%(100.0%)(Sales ratio)

EMEA(Europe, Middle
East, Africa)

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Japan

YoY ＋17.8%

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

Overseas

YoY ＋28.3%

 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)

Industrial Switches*Round down to the millions

FY2022
1H

FY2023
1H

Industrial Switches

16,340(46.9%)

20,007+22.4%(46.3%)

Industrial Relays &Components

6,724(19.3%)

8,521+26.7%(19.7%)

Automation & Sensing

5,074(14.6%)

6,244+23.0%(14.5%)The demand for operator interfaces and programmable logic
controllers has still moved in Japan, Americas, and EMEA.

Safety & Explosion
Protection

4,316(12.4%)

5,554+28.7%(12.9%)

Safety & Explosion Protection

Systems

1,755(5.0%)

2,163+23.3%(5.0%)

Others644(1.8%)

688+ 6.8％(1.6%)

34,856(100.0%)43,180+23.9%(100.0%)(Sales ratio)

Total

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YoY

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.

Others
The system-related demand for the environmental energy
business increased in Japan.
9

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

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10Orders receivedReducing backlogs has been proceeded due to addressing the production reinforcement
The amount of orders received in Americas has moved in a high level mainly in Oil &Gas industries and influenced by the weak yen(Unit: million yen)

FY2022 1H

FY2023 1H

Amount ofordersreceived

Backlog

Amount oforders received

YoY

Backlog

YoY

Japan

22,97012,44819,581-14.8%

17,940+44.1%

Americas

7,405

3,520

+26.8%

6,635+88.5%

EMEA

9,390

(Europe, Middle East, Africa)

8,505

5,923

7,974

-6.2%

8,229

+38.9%

Asia Pacific

8,465

4,801

6,647

-21.5%

5,411+12.7%

Total

47,347

26,694

43,593-7.9%

38,218+43.2%*Round down to the millions

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11Orders received (per quarter transition)(Unit: million yen)

In Japan, it decreased in 2Q due to the impact of price revision from July(in recovery tendency in October)
In EMEA, it increased compared to 1Q due to APEM’s strong receiving orders
FY2022

FY20232Q (Jul. to Sep.)

3Q (Oct. to Dec.)

Ordersreceived

Backlog

Ordersreceived

Backlog

Ordersreceived

Backlog

Ordersreceived

Backlog

OrdersreceivedJapan

11,712

12,448

12,204

16,06911,12918,048

11,057

19,8758,524 17,940

Americas

3,875

3,520

3,547

4,459

3,688

5,060

4,874

6,405

4,515

6,635

4,613

5,923

2,677

5,853

3,730

6,708

3,555

7,428

4,418

8,229

Asia Pacific

4,350

4,801

4,003

5,345

6,125

8,048

3,746

7,232

2,901

5,411

Total

24,551

26,694

22,432

31,727

24,67337,86623,23340,942 20,359 38,218*Round down to themillions

EMEA(Europe, Middle East,
Africa)Copyright IDEC Corporation. All rights reserved.

4Q (Jan.to Mar.)

1Q (Apr. to Jun.)

2Q (Jul. to Sep.)
Backlog12Orders received (per quarter transition)(Unit: million yen) *Round down to the millions

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13

Consolidated performance [Consolidated balance sheet]
Highlights of assets
 As inventory assets, tradereceivables, fixed assets, cash anddeposits increased, total assets
increased by 9.84 billion yen(Unit: million yen)

*Round down to the millions

Highlights of liabilities

Highlights of net assets

 While borrowings decreased,
trade payables and lease obligations
increased
Total liabilities increased by 1.38
billion yen

 Due to the increase of foreign
currency translation adjustment
and earned surplus, net assets
increased by 8.46 billion yen

FY2022(previous FY)

FY2023(end of September)

YoY

Current assets

47,17154,453+7,281

Fixed assets

47,78950,355+2,566

Current liabilities

21,66023,130+1,470

Fixed liabilities

24,291

24,205-86

Net assets

49,00857,472+8,463

Total assets

94,960104,808+9,848

Shareholders’ equity ratio

51.2%

54.5%

+3.3%

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14

Consolidated performance [Consolidated cash flow statement]
Cash Flows by operation activities
It was +3.43 billion yen due to the increased
payment of income tax involved with significant
increased income in the previous year and theincreased inventory assets and trade receivables(Unit: million yen)

*Round down to the millions

Cash Flows by investing activities
 Due to the acquisition of fixed
assets, etc., it was -1.48 billion yen

FY2022 1H

Cash Flows by financing activitiesIt was-2.3 billion yen due torepayment of borrowings andexpenses including dividends

FY2023 1H

YoY

CF from operating activities

5,245

3,432

-1,813

CF from investing activities-1,673-1,482+191

Free cash flows (FCF)

3,572

1,950

-1,622

CF from financing activities-2,601-2,301+299

Cash and cash equivalents at end of year

16,135

15,521-613

Capital expenditure

1,135

1,880

+745

Depreciation and amortization expense

1,617

1,720

+102

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15

Forecast for FY2023

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16

Consolidated business forecast for FY2023
 Business forecast was upwardly revised on September 22, 2022
FY2022(Unit: million yen)

FY2023

Initialforecast

Sales ratio

74,500100.0%

42.8%

32,50020,638

29.2%

Operating income

9,672

Ordinary income*Round down to the millions

ActualSales ratio

Net sales

70,789100.0%

Gross income

30,310

SG&A

Sales ratio

YoY

83,500100.0%+18.0%

43.6%

36,15043.3%+19.3%

21,70029.1%

22,75027.2%+10.2%

13.7%

10,80014.5%

13,40016.0%+38.5%

10,39814.7%

10,80014.5%

14,00016.8%+34.6%

7,896

11.2%

7,500

10.1%

9,400

11.3%

+19.0%

ー250.88ーー+59.65

Net income attributable toowners of parent company

Earnings per share(before diluting) (JPY)

Revisedforecast

264.12323.77

120
130

134
135

+21.60EUR-yen rate (JPY)112.40129.91

CNY-yen rate（JPY）

17.51

18.5

19.5

+1.99

USD-yen rate (JPY)

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+5.09

17

Consolidated business forecast for FY2023(Unit: million yen)

*Round down to the millions

FY2022
ActualIndustrial Switches

33,191

Industrial Relays & Components

13,625

Automation & Sensing

Initialforecast

YoY

39,400+18.7%

14,50017,000+24.8%

9,958

9,100

10,600+ 6.4%

Safety & Explosion Protection

8,908

9,800

10,900+22.4%

Systems

3,742

4,500

4,500

+20.2%

Others

1,363

1,100

1,100

-19.3%

70,78974,50083,500+18.0%

Domestic sales

30,90432,00034,200+10.7%

Overseas sales

39,88542,50049,300+23.6%(Ratio of overseas sales)

56.3%

57.0%

59.0%

Total

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35,500

FY2023
Revisedforecast

18

Expected Dividends of FY2023
 Expected annual dividends were upwardly revised from JPY100 to JPY130(interim dividends of JPY65 and year-end dividends of JPY65).
 Expected annual dividends payout ratio is 40.2%

130
100

100
20

Anniversary
dividend

65

50

Year-end
期末配当
dividends

50

Interim
中間配当

65

40

40
2022年3月期
FY2022

2023年3月期
FY2023(Initial
forecast)（期初予想）
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dividends

2023年3月期
FY2023(Revised
forecast)（修正予想）
19

FY2023 exchange rate and exchange rate sensitivity

Currency

Exchange
assumption

USD

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

Net sales

Operating income

JPY134

Approx. 80 mil. yen

Approx. 20 mil. yen

EUR

JPY135

Approx. 140 mil. yen

Approx. 10 mil. yen

CNY

JPY19.5

Approx. 60 mil. yen

Approx. 15 mil. yen

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20

Medium-Term Management Plan

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CONFIDENTIAL

21

New Medium-Term Management Plan
SloganIn the long-term, we aim to achieve
a 20% operating income margin
FY2025 Plan
Net sales

JPY80 billion or more
(Growth ratio >5%/year)

Operating income

JPY13 billion or more

Operating income
margin16% or moreRC

10% or more

O

I

R

O

E

15% or more

E

P

S

JPY300 or more

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In line with the upward revision of our businessresults for the FY2023, we have exceeded thetargets of our medium-term management plan.

We will revise the FY2025 plan.
(this will be announced again)

22

New Medium-Term Management Plan Initiatives
Four Basic Strategies
Promote Growth Strategy

Improve Profitability

 Strengthen sales based on technical problem-solving
 Accelerate product development and launch products
based on regional and industry needs
 Expand business in China, India and other focus markets,and by M&A and alliances Optimize production structure and processes to reduce
cost, inventory and improve lead time Review and optimize SG&A costs
 Identify and consolidate unprofitable products andbusinesses

Enhance Business Foundation

Enhance ESG Initiatives

 Promote decent work practices
 Strengthen the business structure by promoting PMI
and rigorous management of key projects
 Promote digital marketing at global level

Promote initiatives to reduce environmental impacts
Promote diversity
Improve management transparency and efficiency
Create well-being through Safety and ANSHIN technology
Improve product quality and manufacturing capabilities

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23

New Medium-Term Management Plan Initiatives
Promote Growth Strategy

Improve Profitability

 In April 2021, we transformed the Japanese sales department into a sales
company to promote various initiatives and improve operational efficiency

 Consolidation of sales offices (consolidate to 2 sites in 2021)
 Reorganization of our distribution network to focus on transactions with distributors who are actively
engaged in sales
 Optimization of selling prices
 Review of product mix, including improvements to the ratio of new products with high profitability
 Building a new sales network to expand product sales(Example: Considering potential collaborations in each region, and partnering with trading companies andsystem integrators to expand sales of specific products such as APEM (special vehicles industry) and the ezWheel (AGV and AMR industries)
 Promotion of digital transformation (DX), including the utilization of Salesforce (SFDC) and E-commerce (EC)sites

 We established a Technical Solution Sales Department in April 2022 andstrengthened its functions to proactively develop solutions sales that can solve
customer problems
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24

New Medium-Term Management Plan Initiatives
Improve ProfitabilityGlobal promotion of production capacity expansion

We gradually expanded our production facilities mainly for products that maintainhigh profitability and high levels of global demand
Investment in manufacturing facilities was approximately 1.6 times higher(compared to the FY2020)
We expanded production lines, transferred production to overseas factories,
installed automation equipment, etc.
 Switches: Expansion to two to three times the production capacity of compact
and thin switches(compared to the FY2020) Safety-related products: Production capacity expansion of two to five times
for some series(compared to the FY2020)

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25

Introduction of New Products

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CONFIDENTIAL

26

New Product (1)The HT4P Safety Commander, which makes it easy to attach an emergency
stop switch and enabling switch onto a tablet
 In January 2021, we launched the wireless LAN-type HT3P
 We launched the HT4P, which supports wired LAN connections[Usage Examples]

Robot teaching
Operation control of large equipment and machines
Control of automobile production lines and conveyor lines
Control of semiconductor manufacturing equipment, food-processing
machines, etc.
 Manual control of AVGs and AMRs, etc.


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27

New Product (2)The Weidmüller Klippon Connect AS Series terminal block,which achieves safe and secure, simple wiring
 In 2019, we signed a strategic partnership agreement with Weidmüller (Germany) topromote the expansion of various products with a push-in connection method that enables
wiring with a single push
 We launched the AS Series, which uses SNAP-IN connection technology,
an evolved version of the push-in method
 No tools or wire-end ferrules required for wiring
 Achieves simple wiring
1)

3)

2)
Click

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28

External Evaluation

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CONFIDENTIAL

29

Award for International Standardization Activities
 Toshihiro Fujita, Senior Executive Officer in charge of Management ofTechnology, received the 2022 METI Minister's Award for Industrial
Standardization[Major Achievements]
Contributed to the improvement of safety in various
fields, such as industrial robots, by issuing IEC
standards for three-position enabling switchesPromoted and globally disseminated the Japanesenext-generation safety concept known as“Collaborative Safety (Safety2.0)”

Established a certification system for machine safety
personnel and promoted activities for international
standardization
Promoted the international standardization of Japanesefine bubble* technology*Bubbles smaller than 100 μm (= 0.1 mm) in diameter

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The Industrial Standardization Contribution award ceremony held in October 2022
(Left) Makoto Nagamine, Parliamentary Vice-Minister of Economy, Trade and Industry(Right) Toshihiro Fujita, Senior Executive Officer in charge of Management of Technology

30

Awards for Occupational Safety and Health We received the Award from the Japan Industrial Safety and Health Association for our
remarkable results
 The acquisition of occupational safety and health management systems certifications
at all our Japanese manufacturing sites

Koji Akamatsu, Senior Executive Officer in charge of Manufacturing & SCM,
receiving a certificate of commendation at the award ceremony held in October 2022

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31

Inclusion in ESG Indexes
We were selected for inclusion in two FTSE Indexes for the first time in 2022
 In addition to the S&P/JPX Carbon Efficient Index, we were selected as aconstituent of the Sompo Sustainability Index for two consecutive years
in 2021 and 2022

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32

References

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33

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

Transition of the industrial shipment and YoY status (between July, 2019 and September, 2022)(Unit: million yen)
80,000
Shipment Data

71,05570,00061,88957,34360,00056,36257,54563,58961,62096%

96%

62,158150%

126%

49,911

123%

122%

115%

113%

108%
95%

108%

98%

91%

200%

68,632

55,11350,39750,00040,00075,170

YoY

100%

87%

30,00020,00050%

10,000

0

19/7

19/10

20/1

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20/4

20/7

20/10

21/1

21/4

21/7

21/10

22/1

22/4

22/7

0%

34

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 interfaces
・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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35

This material contains our plans and performance forecast, which we have planned and expected inaccordance with available information as of November 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 Head Quarter
TEL ：+81-6-6398-2505
FAX ：+81-6-6398-2587
E-mail : yasuyuki.ogawa@idec.com

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36