Financial Results Briefing for
the Fiscal Year Ended March 31, 2024 (FY2023)

May 10, 2024

(Securities code: 7721)
1Key Takeaways
For FY2023, we achieved a YoY increase in both sales and profits.

1

Net sales¥47,166 mn

Up ¥2,870 mn YoY

Operating profit¥2,768 mn

Up ¥1,456 mn YoY

5.9%

Up 2.9 pts YoY

Operating profit margin

For FY2024, we plan to achieve a YoY increase in both sales and profits under the new 3-year mediumterm plan.

2

Net sales
Operating profit
Operating profit margin¥57,300 mn¥3,560 mn

Up ¥10,134 mn YoY

6.2%

Up 0.3 pts YoY

Up ¥792 mn YoY

We pay annual dividends under a policy of ensuring stable and consistent shareholder returns while
prioritizing investment for growth.

3

FY2023¥32.50 per share(as initially planned)

FY2024
Ordinary dividend being increasedby ¥2.5 per share¥35.00 per share©TOKYO KEIKI INC. All Rights Reserved2

1. Summary of Financial Results for FY2023

Contents
1. Financial Results for the year ended March 2024 (FY2023)

2. Plans for the year ending March 2025 (FY2024)
References
 Business Trends
 Our Businesses©TOKYO KEIKI INC. All Rights Reserved

31. Financial Results for FY2023

Net Sales and P/L

FY2022
Results

FY2023Results(Million yen)

YoY Change
AmountAnnounced on Feb. 9, 2024%

Forecasts

ChangeAmount%Net sales

44,29647,166+2,870+6.5%

46,700

+466

+1.0%

 Both sales and profits have increased
year on year.

Operating profit

1,312

2,768

+1,456+111.0%

2,080

+688

+33.1% Marine Systems Business and Defense &Communications Equipment Businesshave contributed to increased net sales.

Ordinary profit

1,687

2,990

+1,303+77.2%

2,270

+720

+31.7%

Profitattributable toowners of parent

873

2,277

+1,404+160.9%

1,670

+607

+36.3%

 Significant increases in all line-item
profits due to an improved cost-of-sales
ratio. This was achieved throughoptimizing selling prices and changing
product mix in the Hydraulics andPneumatics Business and otherbusinesses.

Operating profit
margin3.0%

5.9%+2.9 pts

Exchange rate
(to the US dollar)¥135.49¥144.32©TOKYO KEIKI INC. All Rights Reserved

41. Financial Results for FY2023

Analysis of YoY Changes in Operating Profit(Million yen)
*Estimated value

Operating profit+1,456+1,187*

+82*

+48*

2,768

(364)

Despite an increase in SG&A
expenses, our cost-of-sales ratio
improved due to the optimization of
selling prices and changes in the
product mix, resulting in asignificant increase in profit.

(208)
+712*

1,312
Changes in gross profit: +2,029

1
FY20222 inIncrease
net sales

3
Improvementincost-of- sales
ratio

4 of
Impactexchangerate

5Decreasein
Utility costs

Changes in SG&A
Expenses: (572)6
Increasein
SG&A
expenses7
Increasein
R&D cost

8
FY2023©TOKYO KEIKI INC. All Rights Reserved

51. Financial Results for FY2023

Net Sales and Operating Profit (Loss) by Segment
YoY Change
FY2022
Results

FY2023Results(Million yen)AmountAnnounced on Feb. 9, 2024
Forecast%

Overview

ChangeAmount%9,700

11,016+1,316+13.6%

11,100

(84)

–0.8%

565

1,006

+441

+78.1%

1,000

+6

+0.6%

11,658

11,675+18+0.2%

11,500

+175

+1.5%

Operating Profit

(268)

273

+541

–

230

+43

+18.7%Net Sales

4,452

4,772

+320

+7.2%

4,600

+172

+3.7%

Operating Profit

527

733

+206

+39.1%

610+123+20.2%Net Sales
Defense &Communications
Operating Profit
Equipment

14,765

16,185+1,420+9.6%

16,000

+185

+1.2%

(94)

362

+456

–

10

+352

+3,520.0%

3,718

3,517

(201)

–5.4%

3,500

+17

+0.5%

675

502

(173)

–25.6%

340+162+47.6%Net Sales

44,29647,166+2,870+6.5%

46,700

+466

+1.0%

Operating Profit

1,312

2,768

+1,456+111.0%

2,080

+688

+33.1%Net Sales

Marine Systems
Operating Profit

Net Sales

Hydraulics andPneumatics

Fluid
Measurement
Equipment

Net Sales

OthersOperating Profit

In addition to a strong performance in overseas markets
and maintenance services, the depreciation of the yen
has led to increased net sales and profits.

Although the plastic processing machinery market andoverseas markets remained sluggish, deliveries ofhydraulic application equipment increased.
Progress was made in optimizing selling prices, leading toa return to profitability.
Public sector market demand remained steady. Demandin the fire extinguishing equipment market remained
strong, resulting in increased net sales and profits.

Both net sales and profit increased due to strong sales ofequipment for naval vessels, delivery of new products to
the Japan Coast Guard, and changes in the product mix.
In the Railway Maintenance Business, both net sales andprofits decreased due to lower sales of ultrasonic rail
inspection cars, the mainstay of the business.

Total*Segment sales and operating profit are presented on a pre-adjustment basis.
©TOKYO KEIKI INC. All Rights Reserved

61. Financial Results for FY2023

Status of Orders Received

Orders Received For FY2023(Million yen)
Marine Systems

FY2022

10,516FY2023

11,268Order Backlog as of March 31, 2024

YoY Change
Amount

+752

%
+7.1%

FY20224,164

FY2023

4,416

YoY Change
Amount+252%

Overview+6.0%

Purchased goods increased due to newdomestic shipbuilding.

Hydraulics andPneumatics

11,836

11,635

(201)

–1.7%

3,439

3,399

(40)

–1.2%

Orders received and order backlog wereboth at the same level as the previous FY
due to sluggish orders for plastic
processing machinery despite a recovery
trend in orders from overseas.

Fluid
Measurement
Equipment

4,892

4,700

(192)

–3.9%

1,593

1,521

(72)

–4.5%

Large-scale projects decreased in both the
public and private sector markets.

Defense &Communications
Equipment

20,25927,566+7,307+36.1%

22,26933,651+11,382+51.1%

Due to an increase in national defense
budgets, both orders received and orderbacklog reached record highs.
Order backlog increased due to steadyorders for rail inspection cars in the
Railway Maintenance Business.

Others

3,771

3,759

(13)

–0.3%

1,550

1,733

+183

+11.8%

Total

51,27658,929+7,653+14.9%

33,01544,720+11,705+35.5%©TOKYO KEIKI INC. All Rights Reserved

71. Financial Results for FY2023

Management Indicators
Achieving Management Conscious of
Cost of Capital and Stock Price
Return on Capital

Unit

FY2019FY2020

FY2021

FY2022

FY2023

ROE (Return on equity)

%

4.9

3.1

4.6

2.7

6.5

ROA (Return on assets)

%

3.6

2.7

3.5

3.0

4.8

Cost of equity

%

6.6

6.7

6.1

7.8

8.1

EPS (Earnings per share)

Yen

86.76

57.67

91.06

53.16

138.62

BPS (Net assets per share)

Yen

1,782.35

1,919.21

2,005.00

2,005.89

2,243.54

Per Share Information

 We perceive our cost of equity to be between 6% and 8%.
 Although ROE significantly increased in FY2023, it has not
yet exceeded the cost of equity.
 To achieve management that is more conscious of cost ofcapital and stock price, we have formulated a new mediumterm management plan (FY2024–2026) with improved
profitability as a key objective.

Return on CapitalMarket Valuation

ROE

FY-end stock price

Yen

695

944

1,187

1,215

2,719

FY-end market cap.

Billion
yen

11.9

16.1

19.5

19.9

44.7

PER (Price earnings ratio)

Times
(x)

8.01

16.37

13.03

22.85

19.61

PBR (Price-to-book ratio)

Times
(x)

0.39

0.49

0.59

0.61

1.21

FY2019FY2020

Cost of equity

FY2021

FY2022©TOKYO KEIKI INC. All Rights Reserved

FY20238

1. Financial Results for FY2023

Condensed Balance Sheet(Millions of yen)

As of March 31,2023

As of March 31,
2024

YoY Change

AssetsCurrent assets

44,81450,863+6,049Non-current assets

11,80916,115+4,30656,624

66,978+10,354

Total assets
Liabilities
Current liabilities

21,38521,781+395

Non-current liabilities

1,787

7,828

+6,041

Total liabilities

23,172

29,609+6,437

Shareholders’ equity

31,10432,901+1,797

Accumulated othercomprehensive income

1,822

3,948

+2,126

Total net assets

33,45137,369+3,91756,624

66,978+10,354

Net assets

Total liabilities and net assets

Main Reasons for the Increases
 Current assets
Inventories increased due to higher
purchases, stemming from a higher
volume of orders received in the Defense
Business.
 Non-current assets
Property, plant and equipment increased,
driven by investment for growth.
Additionally, investments and other assets
increased due to the rise in stock prices.
 Non-current liabilities
Loans were taken on to accommodate thesignificant increase in orders received,
resulting in an increase in long-termborrowings.
 With the equity ratio at 55.0%, we
continue to maintain financial soundness.

©TOKYO KEIKI INC. All Rights Reserved

91. Financial Results for FY2023

Cash Flows(Millions of yen)

FY2019FY2020

FY2021

FY2022

FY2023Operating CF

2,915

7,068

2,256

(2,829)(2,835)Investing CF(1,139)

(928)

(572)

4

(2,373)

FCF

1,776

6,140

1,684

(2,824)(5,209)Financing CF(3,456)(2,247)(1,120)

(780)

4,299

Cash and cash
equivalents
at end of period

7,709

11,588

12,208

8,671

7,796

Depreciation

1,230

1,128

1,073

1,035

868

Inventories

15,001

12,673

14,97918,15322,905

 Free cash flow (FCF) for FY2023
decreased significantly due toincreased purchases stemmingfrom a rise in orders received(particularly in the Defense
Business) and investments inproperty, plant and equipment.

©TOKYO KEIKI INC. All Rights Reserved

101. Financial Results for FY2023

Shareholder Returns
Basic Dividend Policy
Dividends trends
Annualdividends

単位：円

Dividend payout ratio andDOE trends

Commemorative
dividends

Payoutratio

DOE (Dividend on
equity ratio)

56.4

(Yen)

30.00 30.00

32.50

35.00

25.00 25.00

43.4

1.4

1.6
1.4

1.6

 For annual dividends, we aim for stable and consistentshareholder returns, taking account of past dividend
performance.

Dividends

32.9

28.8

 To achieve TOKYO KEIKI Vision 2030 and enhance
corporate value, we implement optimal shareholder
returns policy, being mindful of our optimal capital
structure—while prioritizing investment for growth andconsidering the balance with our financial foundation.

1.6

23.4

FY under review (FY2023)¥32.50

Next FY (FY2024)¥35.00* Record high for two consecutive years since
FY2000Shareholder Benefits
FY2019 FY2020 FY2021 FY2022 FY2023 FY2024(Forecast) (Plan)

FY2019 FY2020 FY2021 FY2022 FY2023(Forecast) Points are awarded based on the number of shares
held by eligible shareholders.
 These points can be exchanged for preferred products
on our dedicated website for shareholders, “TOKYOKEIKI Premium Benefits Club.” For details, please refer to our exclusive website forshareholders:

https://tokyokeiki.premium-yutaiclub.jp/©TOKYO KEIKI INC. All Rights Reserved112. Plans for FY2024

Contents
1. Financial Results for FY2023

2. Plans for FY2024
References
 Business Trends
 Our Businesses©TOKYO KEIKI INC. All Rights Reserved122. Plans for FY2024

Status of External Environmental Risks

Occurrences• Increased domestic labor costs impacting
material prices.
Rising prices ofmaterials

 All Businesses• Price hikes for electronic components impacting
material prices.

Response• Continue negotiations with customers to raise
selling prices.

Degreeof ImpactHigh• Reduce procurement costs.

• Global inflation impacting purchase prices.
• Postponement of contracted projects due topressure on client budgets.

 Fluid Measurement
Equipment• Enhance monitoring of contracted projects
and compensate with other projects.

Medium• Continued depreciation of the yen.

 Marine Systems (+)• The exchange rate is planned at ¥140 to the
US dollar.

Medium Hydraulics andPneumatics(–)

Exchange rate

• Economic slowdown impacting sales.
Chinese economy

Target Business Marine Systems• Impact of import and export restrictions arising  Hydraulics andfrom U.S.-China frictions.
Pneumatics• Beware of potential price increases inpurchased components.
• Plan to secure components in advance oforders received from customers and/or switch
to alternative items as necessary.

Medium• Expand sales of high value-added products.
• Expand sales in other regions.

©TOKYO KEIKI INC. All Rights Reserved13

2. Plans for FY2024

FY2024 Earnings Forecast(Millions of yen)

FY2023Results

FY2024
Forecasts

YoY Change
Amount%Net sales

47,16657,300+10,134+21.5%

Operating profit

2,768

3,560

+792

+28.6%

Ordinary profit

2,990

3,780

+790

+26.4%

Profit attributable toowners of parent

2,277

2,850

+573

+25.2%

Operating profit
margin5.9%

6.2%+0.3 pts

Exchange rate
(to the US dollar)¥144.32¥140.00

 Plan to increase sales andprofits through steadily
converting high levels of orderbacklog into net sales.

©TOKYO KEIKI INC. All Rights Reserved

14

2. Plans for FY2024

Investment for Growth (Capital Expenditures and R&D Cost)

Capital Expenditures

R&D Cost(Millions of yen) Capital expenditures
To accommodate the increase inorders received for the Defense
Business, we plan to invest
approximately 1.5 billion yen in a
new plant building for the Defense
Business as well as update andenhance various production facilities.

(Millions of yen)

OthersDefense &Communications
Equipment

OthersDefense &Communications
Equipment
Fluid

Hydraulics &Pneumatics

Fluid
Hydraulics &Pneumatics
Marine Systems

FY2019 FY2020 FY2021 FY2022 FY2023 FY2024(Plan)

MarineSystems

FY2019 FY2020 FY2021 FY2022 FY2023 FY2024(Plan)

 R&D cost
In addition to product development
related to growth drivers such as
space and hydrogen, we are planning
R&D for new products related tocore technologies, including
autonomous ships, gyro andmicrowave technologies.

©TOKYO KEIKI INC. All Rights Reserved15

2. Plans for FY2024

Analysis of YoY Changes in Operating Profit(Millions of yen)

Operating profit+792*Estimated value Profits in the Defense Business are
expected to increase significantly
thanks to a substantial rise in net
sales.

+2,797*(1,063)*(52)*(427)*

(129)

2,768

1
FY20232 in net Rise in3 cost-ofIncrease
sales
sales ratio

4
Impactofexchangerate

5Increaseinpersonnel
costs

6
Increasein
SG&A
expenses

3,560 Personnel costs will rise due to theincrease in base pay.

(334)

7 in
Increase
R&D costs

 The cost-of-sales ratio is expected
to increase due to higher net sales
in the Defense Business (which hasa relatively high cost-of-sales ratio).

8
FY2024©TOKYO KEIKI INC. All Rights Reserved16

2. Plans for FY2024

Earnings Forecast by Segment(Millions of yen)

FY2023Results

FY2024
Forecast

YoY Change
AmountOutlook%Net sales

11,016

11,400

+384

+3.5%

Operating profit

1,006

810

(196)

–19.5%Net sales

11,675

11,500

(175)

–1.5%

273

360

+87

+31.9%

4,772

4,900

+128

+2.7%

Operating profit

733

610

(123)

–16.8%Net sales
Defense &Communications
Operating profit
Equipment

16,185

25,100+8,915+55.1%

362

1,350

+988

+272.9%

3,517

4,400

+883

+25.1%

502

540

+38

+7.6%

Net sales

47,16657,300+10,134+21.5%

Operating profit

2,768

3,560

+792

+28.6%

Marine Systems

Hydraulics &Pneumatics
Fluid
Measurement
Equipment

Operating profit
Net sales

Net sales
Others

Total

Operating profit

While demand for new shipbuilding andmaintenance services in East Asia is expected toremain steady, a decrease in profits is anticipated
due to increased R&D cost for investment for
growth.
An increase in profits is expected due to efforts
to optimize selling prices and improve
productivity.
A decrease in profits is expected due to upfront
investment in R&D and changes in the productmix.
Overall, increased net sales and profits are
anticipated due to significant net sales growth in
the Defense Business (driven by the expansion of
the national defense budgets).
Increased net sales and profits are expected in
the Printing Inspection Equipment Business dueto the introduction of new products, and in the
Railway Maintenance Business due to increased
sales of ultrasonic rail inspection cars (themainstay of that business).

©TOKYO KEIKI INC. All Rights Reserved

17References: Business Trends

Contents
1. Financial Results for FY2023

2. Plans for FY2024
References
 Business Trends
 Our Businesses©TOKYO KEIKI INC. All Rights Reserved

18

References: Business Trends

Segment Ratio of Net Sales and Operating Profit for FY2023

Net sales
Others7.5％

47,166
million yen

Defense &communications
Equipment
34.3％
Fluid Measurement
Equipment
10.1％

Operating profit
Others17.5％

Marine systems
23.4％

Defense &communications
Equipment
12.6％

Business characteristics

Marine systems
35.0％

2,768
million yen

Hydraulics andpneumatics
24.8％
Fluid Measurement
Equipment
25.5％

Hydraulics andpneumatics
9.5％

 Due to the nature of thebusinesses, Fluid Measurement
Equipment Business, Defense andCommunications Equipment
Business, and Others in Railway
Maintenance Business have sales
and earnings weighted in thesecond half.
 Performance of Hydraulics andPneumatics Business is affectedby the economy.

©TOKYO KEIKI INC. All Rights Reserved

19

References: Business Trends

Changes in Net Sales and Operating Profit(Million yen)

【Net sales】(Million yen)

【Operating profit】(Million yen)

FY2019FY2020

FY2021

FY2022

FY2023

Net sales

47,44042,081

41,51044,29647,166

Operating profit

1,875

1,250

1,635

1,312

2,768

Ordinary profit

2,011

1,458

1,926

1,687

2,990

Profit attributable toowners of parent

1,425

945

1,493

873

2,277

Operating profit margin

4.0％

3.0%

3.9％

3.0％

5.9％

©TOKYO KEIKI INC. All Rights Reserved20References: Business Trends

Changes in Net Sales by Segment【Net sales】(Million yen)

【Operating profit】(Million yen)

©TOKYO KEIKI INC. All Rights Reserved21

References: Business Trends

Quarterly Changes in Net Sales(Million yen)

Full
year

FY2019FY2020

FY2021

FY2022

FY202347,44042,081

41,51044,29647,166©TOKYO KEIKI INC. All Rights Reserved22

References: Business Trends

Quarterly Changes in Operating Profits(Million yen)

Full
year

FY2019FY2020

FY2021

FY2022

FY2023

1,875

1,250

1,635

1,312

2,768
©TOKYO KEIKI INC. All Rights Reserved23

References: Business Trends

Quarterly changes in net sales and operating profits by segment [Marine Systems](Million yen)

Net sales

Operatingprofit

FY2019FY2020

FY2021

FY2022

FY2023

FY2019FY2020

FY2021

FY2022

FY2023

Net sales

OperatingprofitNet sales

OperatingprofitNet sales

OperatingprofitNet sales

OperatingprofitNet sales

Operatingprofit

1Q

2,316

93

2,232

69

2,019

15

2,078

8

2,458

180

2Q

2,260

62

2,224

157

2,204

162

2,320

158

2,949

391

3Q

2,223

47

2,031

40

2,124

128

2,712

273

2,755

236

4Q

2,295

31

2,035

(20)

2,353

83

2,590

126

2,854

199

Full year

9,094

233

8,522

246

8,700

388

9,700

565

11,016

1,006©TOKYO KEIKI INC. All Rights Reserved24

References: Business Trends

Quarterly changes in net sales and operating profits by segment [Hydraulics and Pneumatics](Million yen)

Net sales

Operatingprofit

FY2019FY2020

FY2021

FY2022

FY2023

FY2019FY2020

FY2021

FY2022

FY2023

Net sales

OperatingprofitNet sales

OperatingprofitNet sales

OperatingprofitNet sales

OperatingprofitNet sales

Operatingprofit

1Q

3,080

(41)

2,414

(138)

2,835

(19)

2,819

(88)

2,644

(70)

2Q

3,055

(3)

2,386

(196)

2,688

(41)

2,867

(52)

2,923

34

3Q

2,913

(16)

2,655

(145)

3,002

41

2,840

(119)

2,930

114

4Q

3,002

(163)

2,896

55

3,001

(96)

3,132

(9)

3,178

195

Full year

12,050(223)

10,351(424)

11,526(115)

11,658(268)

11,675

273©TOKYO KEIKI INC. All Rights Reserved25

References: Business Trends

Quarterly changes in net sales and operating profits by segment [Fluid Measurement Equipment](Million yen)

Net sales

Operatingprofit

FY2019FY2020

FY2021

FY2022

FY2023

FY2019FY2020

FY2021

FY2022

FY2023

Net sales

OperatingprofitNet sales

OperatingprofitNet sales

OperatingprofitNet sales

OperatingprofitNet sales

Operatingprofit

1Q

393

(170)

520

(130)

597

(130)

583

(142)

597

(132)

2Q

797

51

669

(46)

854

52

751

(29)

915

8

3Q

763

9

935

117

1,057

209

1,056

110

1,178

186

4Q

1,792

655

1,879

706

1,924

784

2,062

588

2,082

671

Full year

3,745

545

4,003

647

4,432

915

4,452

527

4,772

733

©TOKYO KEIKI INC. All Rights Reserved26

References: Business Trends

Quarterly changes in net sales and operating profits by segment[Defense & Communications Equipment](Million yen)

Net sales

Operatingprofit

FY2019FY2020

FY2021

FY2022

FY2023

FY2019FY2020

FY2021

FY2022

FY2023

Net sales

OperatingprofitNet sales

OperatingprofitNet sales

OperatingprofitNet sales

OperatingprofitNet sales

Operatingprofit

1Q

3,366

(9)

3,078

(82)

2,126

(266)

2,976

(175)

3,208

(329)

2Q

4,198

170

3,967

59

3,874

335

2,630

(301)

2,156

(398)

3Q

4,558

264

4,055

94

3,239

(64)

3,615

(258)

3,725

(136)

4Q

7,142

506

5,181

466

4,645

307

5,544

640

7,096

1,225

Full year

19,264931

16,281537

13,884312

14,765(94)

16,185362©TOKYO KEIKI INC. All Rights Reserved27

References: Business Trends

Quarterly changes in net sales and operating profits by segment[Others](Million yen)

Net sales

Operatingprofit

FY2019FY2020

FY2021

FY2022

FY2023

FY2019FY2020

FY2021

FY2022

FY2023

Net sales

OperatingprofitNet sales

OperatingprofitNet sales

OperatingprofitNet sales

OperatingprofitNet sales

Operatingprofit

1Q

437

(155)

380

(119)

450

(101)

469

(111)

510

(111)

2Q

713

25

620

12

732

59

1,097

168

840

74

3Q

599

(32)

552

(2)

603

(30)

604

(37)

916

186

4Q

1,534

626

1,372

439

1,181

322

1,548

655

1,251

353

Full year

3,283

464

2,924

330

2,966

250

3,718

675

3,517

502

©TOKYO KEIKI INC. All Rights Reserved28

References: Business Trends

Quarterly changes in order backlog(Million yen)

45,512

44,72041,34936,08528,221

27,832

26,631
21,884

21,482 22,060

22,691

22,42523,80423,031

24,52826,003 26,616

28,136

29,66833,015FY2019FY2020

FY2021

FY2022

FY2023

1Q

28,221

21,48223,804

26,61636,085

2Q

27,832

22,06023,031

28,136

41,3493Q

26,631

22,691

24,52829,66845,512

4Q

21,88422,42526,00333,01544,720©TOKYO KEIKI INC. All Rights Reserved29

References: Business Trends

Quarterly changes in order backlog by segment (Table)
Million yen

Marine Systems

Hydraulics and Pneumatics

Fluid Measurement
Equipment

Defense & Communications
Equipment

Others

FY2019FY2020

FY2021

FY2022

FY2023

1Q

2,671

2,729

2,747

3,502

4,246

2Q

2,449

2,355

2,923

3,860

4,050

3Q

2,382

2,161

3,185

3,919

4,190

4Q

2,676

2,277

3,348

4,164

4,416

1Q

3,397

2,400

3,022

3,547

3,713

2Q

3,186

2,434

3,281

3,458

3,695

3Q

2,951

2,462

3,370

3,424

3,638

4Q

2,547

2,659

3,260

3,439

3,399

1Q

1,032

1,124

1,432

1,652

2,239

2Q

1,312

1,643

1,864

2,207

2,596

3Q

1,948

2,144

2,488

2,650

2,705

4Q

963

1,015

1,153

1,593

1,521

1Q

20,00813,88815,182

16,096

23,5102Q

19,735

14,38913,44816,72628,5983Q

18,063

14,256

13,773

17,49732,555

4Q

15,26815,571

16,77522,26933,651

1Q

1,114

1,342

1,421

1,820

2,377

2Q

1,149

1,239

1,515

1,885

2,410

3Q

1,286

1,670

1,712

2,179

2,424

4Q

430

903

1,467

1,550

1,733

©TOKYO KEIKI INC. All Rights Reserved30References: Our Businesses

Contents
1. Financial Results for FY2023

2. Plans for FY2024
References
 Business Trends
 Our Businesses©TOKYO KEIKI INC. All Rights Reserved31

Reference: Our Businesses

Principal Businesses of TOKYO KEIKI GroupTOKYO KEIKI Group’s businesses are divided into four segments and others, and there are 11 businesses within these segments.
Others7.5％【FY2023】

Marine systems
23.4％

Defense &communications
Equipment
34.3％

Net sales
47,166
million yen
Hydraulics andpneumatics
24.8％
Fluid Measurement
Equipment
10.1％

Others17.5％
Defense &communications
Equipment
12.6％

Operating
pofit
2,768
million yen

Segment (4+ Others)
Marine Systems Business Navigational equipment

Hydraulics and Pneumatics
Business Hydraulic and pneumatic equipment

Fluid Measurement Equipment
Business

 Measuring instruments

Defense & Communications
Equipment Business Defense equipment

 Fire extinguishing systems

 Marine traffic equipment
 Inertial sensor and applied equipment

Marine systems
35.0％

 High-frequency application equipment(microwave applied equipment) Communication & control equipment
OthersFluid Measurement
Equipment
25.5％

Business (11)Hydraulics andpneumatics
9.5％

 Inspection systems

 Railway maintenance©TOKYO KEIKI INC. All Rights Reserved32

Reference: Our Businesses

History of Creation of Core Technologies
The business of the TOKYO KEIKI Group goes back to the Meiji Era and the development of nautical instruments.
Starting with gyro technology, a number of core technologies have emerged and have developed into current
businesses. These core technologies are still a source of innovation by being shared among businesses when
producing new products.
Concluded
Marinea manufacturing rightNautical instruments
gyrocompasses
agreement with(pressure gauges)
U.S. company Sperry
Domestic production ofvarious ship equipment

Core technologies

Navigational equipment
Gyro technology

Communication & control
equipment

Inertial sensor application
technology*Inertial sensor:
Technologies based on
gyro sensors and acceleration
sensors, and combinations thereof.

Concluded a sales rights
contract after World War II
From the achievements ofnautical instruments such ascompasses
Aircraft instrument
Fire detectors andfire extinguishers

Current businessCommunication & control
equipment
Inertial sensor and applied
equipment
Defense equipment
Defense equipment

Marine radar
From performance evaluationsof marine radars
Air traffic control
radar

From the experience inthe aircraft equipment field

Microwave technology

High-frequency
application equipment
Marine traffic equipment
Measuring instruments

Concluded a sales rights contract with a U.S. company as ship equipment
Fire extinguishing systems
Concluded distribution agreements with
an affiliate of Sperry

Ultrasonicflaw detector

Focused on the hydraulic pumps of Vickers(affiliated with Sperry) that had been
incorporated in marine products

Hydraulic equipment

Measuring instruments
Ultrasonic technology

Hydraulics control technology

Developed from image processing technology that had
been researched for product inspection

Railway maintenanceHydraulic and pneumatic
equipment
Inspection systems©TOKYO KEIKI INC. All Rights Reserved33

Reference: Our Businesses

Navigational
equipment

Marine Systems BusinessContributing to safe navigation and energy-saving ship steering.

Market share
Marinegyrocompasses andautopilots

Navigational
equipment

More than
60% of the global
commercial vessels
marketMarine autopilots
for steering systems,
such as automatic
rudders, etc.

Marine gyrocompasses
that indicate thedirection of a ship’s
heading

Fiber Optic Gyrocompass(FOG) without moving partsfor periodic replacement of
the sensor

Electronic Chart Display andInformation Systems (ECDIS) that
display navigational charts in realtime

More than
80% of the domestic

coastal vessels market.

 Offering a complete lineup of essential marine systems for ships and supplying them globally.
 Pioneer in marine systems as the first in Japan to manufacture marine radars, gyrocompasses, and autopilots.

"DFFAS Project for Realizing Fully
Autonomous Ships""Wind Challenger
Project”

 As a leader in marine gyrocompasses and autopilots, we have also participated in the fully autonomous ship
development project and the next-generation wind-powered vessel project, which contributes to reducing GHG
emissions.
©TOKYO KEIKI INC. All Rights Reserved34

Reference: Our Businesses

Hydraulic andpneumatic
Equipment

Hydraulics and Pneumatics BusinessSupporting the manufacturing floor and frontline of infrastructure.

Market share

Approx. 40%

For industrial
machineryLow-noise fixed displacement vanepump widely used in generalindustrial machinery

Solenoid directional valves
controlling velocity andpressure proportionally

Compact power unit widely used as a
hydraulic power source for machine
tools and general industrial machineryof the domestic
market for plastic
injection molding
machines

 Providing energy-efficient and highly controllable hydraulic and pneumatic equipment for injection molding machines, machine tools,
die-casting machines for automobile manufacturing, and other applications.

For
construction
machineryHigh-capacity and quick-response cartridge
valves used in construction machinery

Electric direct control piston pumps forconstruction machinery

Displays for construction machinery Providing hydraulic products and electronic equipment that controls the drive primarily for specially-equipped vehicles such as cranes
and aerial work platforms.

Utilization ofhydrogenenergyHydrogen compressors for hydrogen filling stations

Split module hydrogen compression packages

 Providing hydraulic-drive hydrogen compressors for hydrogen filling stations as well as split-module hydrogen compression packages.
©TOKYO KEIKI INC. All Rights Reserved35

Reference: Our Businesses

Fluid Measurement Equipment BusinessMeasuring
instruments

Protecting life and human life:
Contributing to the safety of life through water resource management and river disaster prevention.

Market share

Over 60% of theFlow monitoring
High-precision ultrasonic flowmeters
for monitoring water supply,
agricultural water, and industrial water

Microwave level gauges widelyused in food manufacturing plants andindustrial plants in oil tanks, etc.

market for domestic
water and seweragesystems andagricultural water.

 The first pioneer in the world to commercialize ultrasonic flowmeters.
 Our ultrasonic flowmeters are used to monitor flow rates in water and sewerage systems as well as agricultural water pipelines.

Land disasterprevention
Crisis management water gauges
that provide early detection of rising
river levels

Flood-control level gauges that indicate
the risk of urban flood damage caused by
sewage overflowing from manholes

 Systems use microwave level gauges to protect lives from the spate of river and urban flooding.

Fire extinguishingsystems

Protecting against fires:
Gas-based fire extinguishing systems are widely used in facilities that are strictly prohibited from getting wet

Gas-based fire extinguishing systems are widely used inparking garages, museums, art museums, office buildings and factories
with printing machinery, etc., where the use of water or foam-based fire
extinguishers is not suitable.
 Miscellaneous gas-based fire extinguishing systems, developed from our (Japan’s first) inert gas fire extinguisher systems, contributeto safe living.
©TOKYO KEIKI INC. All Rights Reserved36Reference: Our Businesses

Defenseequipment

Defense & Communications Equipment BusinessContributing to national defense:
Our strength lies in microwave application technologies and inertial sensor technologies.

Market share◀ Photo courtesy of Satoshi Akatsuka,
IKAROS PUBLICATIONS, LTD.

Radar warning receivers that instantly analyze
radio waves around aircraft and warn pilot of
threat radar signals

Inertial navigation system using
high-precision ring laser gyro,
installed on submarines that cannot
use any external signals such as GPS
for azimuth measurement

Air data computer (ADC) that
calculates the altitude and speed of
the aircraft. This is mounted on Blue
Impulse aircrafts

 Developing, producing, and providing repairs and maintenance for defense avionics equipment and warship navigation systems.

Marine traffic
equipment

Contributing to safe vessel navigation:
Providing maritime monitoring systems that can be called a “marine traffic control tower”.
*1 VTS: Vessel Traffic Services*2 AIS: Automatic Identification System(System for exchanging information
between vessels, as well as between
vessels and navigation aid facilities

Market share

100% share of

VTS systems in Vessel
Traffic Service Centers
nationwide

Maritime surveillance radar
VTS systems responsible for monitoring
installed at the Umihotaru
operations at Vessel Traffic Service Centers
Parking Area in Tokyo Bay
deployed in seven ports across Japan*1 VTS systems including the maritime surveillance radars and AIS*2 information management equipment, which are required formaritime traffic control operations on congested waterways.
 VTS radars to the gulf coasts and rivers in Europe as well.
©TOKYO KEIKI INC. All Rights Reserved37

Reference: Our Businesses

Inertial sensor andapplied equipment

Defense & Communications Equipment BusinessContributing to smart agriculture and disaster prevention systems through combining inertial sensors
and control technologies.
Seismic accelerometer
essential for measuring
seismic magnitude

Straight-line assistance for
agricultural vehicles to reducethe burden of working on the farm

 Promoting smart agriculture with straight-line assistance for agricultural vehicles that integrates gyro technology, inertial sensors, andproprietary software technology.
 Contributing to national disaster prevention with accelerometers used in seismometers for the Japan Meteorological Agency.
High-frequency
applicationequipment

Market share
Our share ofaccelerometers used inseismometers for theJapan Meteorological
Agency isapprox. 80%

Entering into advanced industries through contributing to semiconductor production equipment components andspace business, making full use of microwave application technologies.
Solid-state microwave power supply
used for next-generation
semiconductor production
equipment©️Synspective Inc.

Synthetic aperture radar (SAR) satellitewith the microwave amplifier onboard

 Solid-state microwave power supplies used in semiconductor production equipment to achieve semiconductor miniaturization.
 Providing microwave amplifiers that amplify radar signals emitted from SAR satellites toward the earth’s surface.
Communication &control equipment

Improving broadcasting quality by utilizing technologies such as gyro sensors, accelerometers,
and magnetic azimuth sensors.
Antenna directioning systems which continuously
grasp the position and attitude directions ofhelicopters, control relay antennas towardreceiving stations, and transmit video without
interruption

Camera stabilizer installed onrelay vehicles for marathons andnews helicopters used bybroadcasting stations

 Achieving stable video transmission through attitude control equipment mounted on news helicopters and relay vehicles.
 Ensuring reliable transmission of aerial footage with antenna directioning systems mounted on news helicopters of domestic TV
stations.

Antenna directioning
systems are mounted on

more than 90%
of news helicopters
owned by domestic TV
stations©TOKYO KEIKI INC. All Rights Reserved38

Reference: Our Businesses

Printing
inspection
equipment

Others (Inspection/Railroad)

Contributing to improving the quality of printing:
Detecting printing defects and material surface problems through high-precision image processing technologies.

Market share
A domestic market
leader for gravure

Print quality inspection device
that ensures print quality bydetecting print defects

Material inspection equipmentthat detects flaws and foreign
matter contaminations in plainmaterials such as films, nonwoven
fabrics, and metal foils

 Achieving high-speed and real-time image processing with in-house developed chips.
 Automatically detecting printing errors and foreign matter contamination at high speed to improve work efficiency and eliminate
material waste.

Railway
maintenanceContributing to safe operations of railways:
Utilizing ultrasonic technology for railway maintenance.

printing inspection for
flexible plastic materials

Flexible plastic materials:
packaging materials
consisting of thin, flexible
materials such as plastic
films, paper, andaluminium foil

Market share
Ultrasonic rail
inspection cars for JR
and private domestic
railwaysover 70%
Ultrasonic rail inspection car that
performs non-destructive inspections
using ultrasonic technology

Switch profile gauge thatsimultaneously measures rails wear,
crossing wear, and track geometry

Track diagnosis support system that
automatically inspects and determines thecondition of multiple types of track materials

 Supporting railway maintenance work with maintenance equipment and maintenance services such as ultrasonic rail flaw detectors
and switch profile gauges.
©TOKYO KEIKI INC. All Rights Reserved

39

Cautionary Note

Cautionary Note on forward-looking information
The data and forecasts disclosed in this document are based on judgments and information available as of thedate of publication. They are subject to change due to various factors and do not guarantee future performanceor the achievement of the stated goals or forecasts. Additionally, the information contained herein may change
in the future without notice.
We assume no responsibility for any damages that may arise as a result of using this document.

For inquiries regarding this document:
TOKYO KEIKI INC. Corporate Communications OfficeTEL:

03-3730-7013

Inquiry form:

https://www.tokyokeiki.jp/e/webform_tokyokeiki_e.html

Web site :https://www.tokyokeiki.jp/©TOKYO KEIKI INC. All Rights Reserved40