Financial Results
for the First Quarter FY2022(April1, 2021 to June 30, 2021)

August 4, 2021
IDEC CORPORATION
Securities code：6652
Copyright IDEC Corporation. All rights reserved.

1

Overview of consolidated financial results■ Best results as the quarter: net sales of 17.3 billion yen, operating income of 2.3 billion yen(YoY 2.7 times)/, operating income margin of 13.3%, net income of 1.8 billion yen (YoY 3 times)/,
net income ratio of 10.4%(The maximum in the past was net sales of 16.4 billion yen and operating income of 1.7 billion yen at the 2Q FY2019.)

Net
Sales

■Net Sales JPY17.3 billion （YoY 1.3 times）– As the demand for capital investment of manufacturing industry transferred ina high level, sales of all regions and all products moved strongly.

■Operating Income JPY2.3 billion yen (YoY 2.7 times）
Income■Ordinary Income JPY2.4 billion yen (YoY 3 times）■Net Income*

JPY1.8 billion yen (YoY 3 times）*Net income attributable to shareholders of parent company– Profit improved significantly YoY due to sales improvement and cost rate
decrease
Copyright IDEC Corporation. All rights reserved.

2

Consolidated performance [Consolidated income statement] -1
FY2021 1Q

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

ActualSales Ratio

Net sales

12,837100.0%

Gross operating income

5,407

SG&A

Progression
ratio forFY2022 plan

Sales Ratio

YoY

17,270100.0%+34.5%

28.8%

42.1%

7,300

42.3%

+35.0%

28.2%

4,561

35.5%

4,999

28.9%

+ 9.6%

25.4%

Operating income

845

6.6%

2,300

13.3%

+172.0%37.1%

Ordinary Income

806

6.3%

2,436

14.1%

+202.0%39.3%

Net income attributable toshareholders of parent
company

570

4.4%

1,799

10.4%

+215.5%45.0%

Earnings per share(EPS)(before diluting) (JPY)18.63円

－

60.01

－

+41.38ー

109.52+1.89

ー

127.80+7.67

ーUSD-yen rate (JPY)EUR-yen rate (JPY)
Copyright IDEC Corporation. All rights reserved.

107.63120.13

Actual3

Changing factors of consolidated operating income
Operating income increased by 1.45 billion yen YoY due to sales increase, cost rate
decrease, and impact of exchange, etc.

+1,670+20
Cost rate
decrease-310
SG&A
increase(unit: million yen)
（単位：百万円）*Round down※百万円未満切捨て
to the million＋70
Impact ofexchange

2,300
845

Sales
increase

2021年3月期
FY2021 1Q
1Q
Copyright IDEC Corporation. All rights reserved.

2022年3月期
FY2022 1Q
1Q
4

Consolidated performance [Consolidated income statement] -2
FY2021(Unit: million yen)
※Round down to themillions

1Q (Apr.to Jun.)
Actual

Sales
ratio

2Q (Jul.to Sep.)
Actual

Sales
ratio

FY20223Q (Oct.to Dec.)
Actual

Sales
ratio

4Q (Jan.to Mar.)
Actual

Sales
ratio

1Q (Apr. to Jun.)
Actual

Sales
ratio

YoY

Net sales

12,837 100.0%

12,549 100.0%

13,750 100.0%

14,845 100.0%

17,270 100.0%+34.5%

Gross operating
income

5,407

42.1%

5,372

42.8%

5,741

41.8%

6,263

42.2%

7,300

42.3%

+35.0%

SG&A

4,561

35.5%

4,592

36.6%

4,607

33.5%

4,981

33.6%

4,999

28.9%

+ 9.6%

Operating income

845

6.6%

780

6.2%

1,133

8.2%

1,281

8.6%

2,300

13.3% +172.0%

Ordinary income

806

6.3%

712

5.7%

1,130

8.2%

1,454

9.8%

2,436

14.1% +202.0%

570

4.4%

519

4.1%

499

3.6%

1,213

8.2%

1,799

10.4% +215.5%

Net income
attributable toshareholders ofparent company
Earnings per
share(EPS)(before diluting)
(JPY)

18.63

Copyright IDEC Corporation. All rights reserved.

17.28

16.65

40.47

60.01
5

Net sales and operating income margin (per quarter transition)（単位：百万円）※百万円未満切捨て(Unit: million yen)
*Round down to the millions

Net sales

Operating income margin

FY2019Copyright IDEC Corporation. All rights reserved.

FY2020

FY2021

FY2022

6

Sales by region(Unit: million yen)

FY2021 1Q

FY2022 1Q

Japan

5,732
(44.7%)

7,343(42.5%)+28.1%

Overseas

7,105(55.3%)

9,926(57.5%)+39.7%

Americas

1,971(15.4%)

2,715(15.7%)+37.8%

2,257(17.6%)

2,975(17.3%)+31.8%

Overseas

Asia Pacific

2,876(22.4%)

4,234(24.5%)+47.2%

Total

12,837(100.0%)17,270(100.0%)+34.5% As the recovery of demand has progressed in
Americas and Europe in addition to Chinathat has been strong since FY2021, sales ofeach product increased.

*Round down to the millions(Sales ratio)

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

YoY

Japan

YoY +28.1%

 As the demand of semiconductor-related,
automobile-related, machine tool, and robot
industries have recovered significantly andexpanded rapidly, received order increased at
the too exceeded level, and the sales
expanded.

YoY +39.7%

7

Sales by regions (per quarter transition)（単位：百万円）※百万円未満切捨て(Unit: million yen)
*Round down to the millions

FY2019Copyright IDEC Corporation. All rights reserved.

FY2020

FY2021

FY2021

8

Sales by products(Unit: million yen)

FY2021 1Q

FY2022 1Q

Industrial Switches

6,203(48.3%)

8,115(47.0%)+30.8%

Industrial Relays &Components

2,491(19.4%)

3,264(18.9%)+31.1%

Automation &Sensing

1,629(12.7%)

2,499(14.5%)+53.4%

Safety & Explosion
Protection

1,595(12.4%)

2,085(12.1%)+30.7%

Systems

724(5.6%)

901(5.2%)+24.4%

Others193(1.5%)

403(2.3%)+108.0%12,837(100.0%)17,270(100.0%)+34.5%*Round down to the millions(Sales ratio)

Total

YoY

*The product classification has been partially changed since FY2022, and the past values
have also been converted for comparison.
Copyright IDEC Corporation. All rights reserved.

Industrial Switches
Sales expanded in all regions due to the rapid expansion of
the demand for capital investment.

Industrial Relays & Components
Sales of control relays have moved strongly in main
Americas and China.

Automation & Sensing

Demands for programmable logic controllers and operator
interfaces have recovered rapidly in Japan, Americas, and
EMEA.

Safety & Explosion Protection

The demand for capital investment has recovered steadily,and sales of Japan and overseas increased.

Systems

Sales of control panels increased in digital equipment andsemiconductor industries in Japan.

OthersSales of environment and energy-relating business haverecovered in Japan.
9

Sales by products (per quarter transition)（単位：百万円） ※百万円未満切捨て

FY2019Copyright IDEC Corporation. All rights reserved.

FY2020

FY2021

FY202210

Order Received
FY2021 1Q(Unit: million yen)
*Round down to themillions

Amount oforder received

FY2022 1Q

Backlog

Amount oforder received

YoY

Backlog

YoY

Japan

6,023

3,528

11,257 + 86.9%

8,941+153.4%

Americas

2,135

1,466

3,530 + 65.3%

2,537+ 73.0%(Europe, Middle East, Africa)

EMEA

2,652

3,438

3,891 + 46.8%

4,309+ 25.3%

Asia Pacific

2,052

1,914

4,114 +100.5%

3,939+105.8%

Total

12,863

10,34822,795 + 77.2%

19,728+ 90.6%

Copyright IDEC Corporation. All rights reserved.

11Order received (per quarter transition)
FY2021(Unit: million yen)
*Round down to themillions

1Q (Apr. to Jun.)

FY20222Q (Jul. to Sep.)

3Q (Oct. to Dec.)

4Q (Jan.to Mar.)

1Q (Apr. to Jun.)

Order
received

Backlog

Order
received

Backlog

Order
received

Backlog

Order
received

Backlog

Order
received

Backlog

Japan

6,023

3,528

6,963

4,079

7,511

4,732

8,663

5,789

11,257

8,941

Americas

2,135

1,466

2,180

1,689

2,287

1,615

2,582

1,895

3,530

2,537

(Europe, Middle East, Africa)

EMEA

2,652

3,438

1,654

3,246

2,088

3,106

2,359

3,150

3,891

4,309

Asia Pacific

2,052

1,914

2,055

1,637

2,582

1,918

4,069

3,368

4,114

3,939

Total

12,863

10,348 12,854

10,653

14,47011,372

17,675

14,203

22,795

19,728

Copyright IDEC Corporation. All rights reserved.

12Order received (per quarter)（単位：百万円） ※百万円未満切捨て

FY2019Copyright IDEC Corporation. All rights reserved.

FY2020

FY2021

FY2022

13

Consolidated performance [Consolidated balance sheet] -1
Highlights of assets


Although cash and deposit decreased,
trade receivables and fixed assets
increased. So, total assets increasedby 1.67 billion yen YoY.

(Unit: million yen)

*Round down to the millions

Highlights of liabilities


Highlights of net assets
 Due to the increased of earned
surplus, exchange account, andadjustment account, net assets
increased by 1.76 billion yen YoY.

Trade payables increased whileborrowing and accrued expenses
decreased. So, total liabilities
decrease by 90 million yen YoY.

FY2021(previous FY)

FY2022(end of June)

YoY

Current asset

39,81541,089+1,273Fixed asset

48,436

48,836+ 400

Current liabilities

18,95919,213+ 254

Non-current liabilities

26,18025,833- 347

Net assets

43,11144,879+1,767

Total assets

88,252

89,926+1,674

Shareholders’ equity ratio

48.7%

49.7%

+ 1.0%

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14

Consolidated performance [Consolidated cash flow statement]
Cash Flows by operation activitiesIt was 2.12 billion yen increased by
1.35 billion yen YoY due to theincrease of payment obligation in
addition to post net income before tax
and depreciation and amortization.

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

Cash Flows by investing activities

Due to the acquisition of fixed
assets and business transfer, etc.,
expenses increased by 80 million
yen, and it was -920 million yen.

FY2021 1Q

Cash Flows by financing activitiesIt was -1.45 billion yen due torepayment of borrowings andexpenses including dividends.

FY2022 1Q

YoY

CF from operation activities

768

2,126

+1,357

CF from investing activities

-841

-924

-82

Free cash flows (FCF)

-73

1,201

+1,275

1,193-1,451-2,644

15,103

14,826-276

Capital expenditures

781

522

-259

Depreciation and amortization

736

800

+64

CF from financing activities
Cash and cash equivalents at end of period

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15

Forecast for FY2022

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Consolidated for business forecast for FY2022
Currently, the backlog has greatly exceeded the maximum in the past, and 2Q is projected to continue to go strongly according to
the backlog. On the other hand, it is necessary to determine the future circumstances of product supply such as long delivery date
for several materials. Therefore, based on the impact by COVID-19 and others, FY2022 forecast as of now is estimated to beamended at the end of 2Q FY2022.
(Unit: million yen)
*Round down to the millions

Net sales

FY2021
ActualSales ratio
53,983100.0%

Forecast
60,000

FY2022
Sales ratio
100.0%

YoY＋11.1%

Gross operating income

22,78342.2%

25,90043.2%＋13.7%

SG&A

18,742

34.7%

19,70032.8%＋ 5.1%

Operating income

4,041

7.5%

6,200

10.3%

＋53.4%

Ordinary income

4,104

7.6%

6,200

10.3%

＋51.1%Net income attributable toshareholders of the parent
company

2,803

5.2%

4,000

6.7%

＋42.7%

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

92.83

－

133.36－＋40.53

USD-yen rate (JPY)EUR-yen rate (JPY)
Copyright IDEC Corporation. All rights reserved.

106.10121.88106.00125.00

－0.10
＋3.12
17

(References) Exchange rate

Currency

Exchange
assumption
FY2022USD

EUR

Copyright IDEC Corporation. All rights reserved.

Effect by 1 yen change of exchange rate
Net sales

Operating income

JPY106

Approx. 50 mil. yen

Approx. 10 mil. yen

JPY125

Approx. 100 mil. yen

Approx. 15 mil. yen

18

Consolidated Business Forecast for FY2022(Unit: million yen)
*Round down to the millions

FY2021 Actual

FY2022
Forecast
YoY

Industrial Switches

25,05428,300＋13.0%

Industrial Relays & Components

9,803

10,400＋ 6.1%

Automation & Sensing

8,203

9,100

＋10.9%

Safety & Explosion Protection

6,513

7,300

＋12.1%

Systems

3,244

3,500

＋ 7.9%

Others

1,163

1,400

＋20.3%

53,98360,000＋11.1%

Domestic sales

24,63827,400＋11.2%

Overseas sales

29,34432,600＋11.1%(Overseas sales ratio)

54.4%

54.3%

－ 0.1%

Total

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19

Enter into Joint Venture Agreementwith Alps Alpine

Copyright IDEC Corporation. All rights reserved.

20

Background of reaching the partnership＜Background＞
・Fusion of technologies
・A new business models unconstrained by industry boundaries＜Issues＞
・A response to the rapidly changing business climate
・Collaboration with a business partner that will allow them to harness
their respective expertise
Convincing the partner that can build an effective relationshipfor accomplishing each other’s future vision

Strategic Partnership
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21

Strengths of both companies and strategic intension

A leader in HMI andsafety for industrial
equipment

Extensive knowledge ofindustrial equipment
and a high profile

A leader in HMI for
automotive
electronics

Sensing technology

High quality and highmix, variable-volume
production

Solutions to matchcustomer needs

High quality andstable production

Softwareintegration

Common strengths as HMI leaders＋

Provision of optimal solutions drawing on their own respective expertise
Formation of a joint venture company
with a view to establishing a highly profitable business
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22

Contents of the partnership
Product development leveraging the respect strength
Promotion of opening markets and branding Joint development of high-value added HMI, safety, andsensing products, and provision of solution
 Promotion of expanding business and branding for mainly
industrial equipment market

Copyright IDEC Corporation. All rights reserved.

23

Targeted products and markets
Delivery of products and solutions the industry needs

SafetyHMI

Sensing

IDEC ALPS Technologies (JV)
Machine tools & robotics

Copyright IDEC Corporation. All rights reserved.

Semiconductor
manufacturing equipment

Food & packaging

Special vehicles

24

Outline of the joint venture company
Company name: IDEC ALPS Technologies Co., Ltd.



Head office: 2-6-64 Nishi-Miyahara, Yodogawa-ku, Osaka, Japan
Representative: Tomonori Nishiki(IDEC Corporation Senior Executive Officer, Technology Development and Environment)

Establishment: September 1, 2021 (scheduled)Capital stock: 100 million yen

Capital contributions: IDEC 51%, Alps Alpine 49%
Business: Business and product planning, product development, manufacturing and sales ofsensing products, HMI products, safety products and wireless/communication technology

Future timeline Launch the first new products to the market in the second half of FY2023
 Scheduled to book sales from FY2024, and launch new products sequentially
Copyright IDEC Corporation. All rights reserved.

25

References

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26

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

Transition of the industrial shipment and YoY status (between July, 2018 and June, 2021)

Copyright IDEC Corporation. All rights reserved.

(Unit: million yen)

27

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

Copyright IDEC Corporation. All rights reserved.

28

This material contains our plans and performance forecast, which we have planned and expected inaccordance with available information as of August 4, 2021.
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

Copyright IDEC Corporation. All rights reserved.

29