Financial Results
for the First Quarter FY2024(April1, 2023 to June 30, 2023)

August 3, 2023
IDEC CORPORATION
Securities code：6652
Copyright IDEC Corporation. All rights reserved.

1

Overview of consolidated financial results■ Net Sales
Net
Sales

JPY18.2 billion (YoY -9.8％)– In EMEA, sales of industrial switches moved firmly. In Americas, there was an
influence of distribution Inventory, but sales increased due to forex impact, etc.

– In Asia Pacific, sales decreased due to the impact of the economic slowdown in
China and Southeast Asia.
– In Japan, sales decreased due to customers’ weak export demand and the influenceof distribution Inventory.

■ Operating Income JPY1.7 billion (YoY -47.2％)■ Ordinary Income JPY2.0 billion (YoY -43.2％)*
JPY1.5 billion (YoY -42.6％)
Income ■ Net Income*Net income attributable to owners of parent company– Income also decreased due to the increased SG&A caused by forex impact and theinfluence of decreased sales.
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Consolidated performance [Consolidated statement of income] -1(Unit: million yen)
※Round down to the millions

FY2023 1Q
ActualSales Ratio

FY2024 1Q

ActualSales Ratio

YoY

20,157100.0%

18,180100.0%- 9.8%

Gross operating income

8,629

42.8%

7,900

43.5%

- 8.4%

SG&A

5,476

27.2%

6,235

34.3%

+13.9%

Operating income

3,153

15.6%

1,665

9.2%

- 47.2%

Ordinary income

3,562

17.7%

2,022

11.1%

- 43.2%

Net income attributable toshareholders of parent company

2,555

12.7%

1,467

8.1%

- 42.6%

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

88.09

－

50.16

－

- 37.93

Net sales

USD-yen rate (JPY)EUR-yen rate (JPY)CNY-yen rate (JPY)129.73130.4019.60

137.49149.5819.56+7.76+19.18- 0.04*Since this 1Q, APEM Group has changed its account closing date from December 31 to March.
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Changing factors of consolidated operating income
Although there was a positive effect by price revision, operating income decreased byapproximately 1.5 billion yen due to decreased sales and the influence of increased
SG&A caused by forex impact.
(unit: million yen) *Round down to the million-1,210

3,153

Sales
decrease

FY2023 1Q
Copyright IDEC Corporation. All rights reserved.

+520

-390

Price
Revision

Cost rate
decrease-460
SG&A
increase＋50
Forex
impact1,665
FY2024 1Q
4Consolidated performance [Consolidated income statement] -2(Unit: million yen)
※Round down to themillions

FY2023
1Q (Apr.to Jun.)
Actual2Q (Jul.to Sep.)

Sales
ratio

Actual

Sales
ratio

FY2024

3Q (Oct.to Dec.)
Actual

Sales
ratio

4Q (Jan.to Mar.)
Actual

Sales
ratio

1Q (Apr. to Jun.)
Actual

Sales
ratio

YoY

Net sales

20,157 100.0% 23,022 100.0% 20,927 100.0%

19,761 100.0%

18,180 100.0%

Gross income

8,629

42.8%

10,376

45.1%

9,750

46.6%

8,620

43.6%

7,900

43.5%

SG&A

5,476

27.2%

5,970

25.9%

5,878

28.1%

5,990

30.3%

6,235

34.3% +13.9%

Operating income

3,153

15.6%

4,406

19.1%

3,871

18.5%

2,629

13.3%

1,665

9.2%

-47.2%

Ordinary income

3,562

17.7%

4,577

19.9%

3,523

16.8%

2,738

13.9%

2,022

11.1%

-43.2%

2,555

12.7%

3,138

13.6%

2,305

11.0%

2,145

10.9%

1,467

8.1%

-42.6%

－

79.03

－

73.31

－

50.16

－

-37.93

Net income attributableto owners of parent
company
Earnings per
share(EPS)(before diluting) (JPY)88.09

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－ 107.94- 9.8%- 8.4%

5

Sales by regions(Unit: million yen)

FY202 1Q

Japan

8,319
(41.3%)

6,681(36.8%)-19.7%

Overseas

11,837(58.7%)

11,498(63.2%)- 2.9%

Americas3,457(17.2%)

3,707+ 7.2%(20.4%)

3,314(16.4%)

3,776+13.9%(20.7%)

Asia Pacific5,065(25.1%)

4,015(22.1%)-20.7%

 In EMEA, sales expanded due to the strong
movement of major HMI business in addition to theforex impact.

Total

20,157(100.0%)18,180(100.0%)- 9.8%

 In Asia Pacific, sales decreased due to the influenceof economic slowdown in China.

(Sales ratio)

EMEA(Europe, Middle
East, Africa)

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YoY

Japan

FY2023 1Q*Round down to the millions

YoY-19.7%

 Due to the influence of customers’ weak export
demand and distribution Inventory, sales decreased.

Overseas

YoY- 2.9%

 In Americas, sales increased due to the recovery of
supply for major automation products and theinfluence of forex.

6

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

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Sales by products(Unit: million yen)

HMI (Human-Machine Interface)

FY2023
1Q

FY2024
1Q

YoY

HMI

8,880
(44.1%)

8,594(47.3%)- 3.2%

Industrial Relays &Components

4,002(19.9%)

2,948(16.2%)-26.3%

Automation & Sensing

2,158(10.7%)

2,341(12.9%)+ 8.4%

Safety & Explosion
Protection

3,841(19.1%)

3,104(17.1%)-19.2%

Sales of programmable logic controllers for Americas moved firmly
due to improved delivery schedule of electronic components.

Systems

950(4.7%)

911(5.0%)- 4.2%

Safety & Explosion Protection

Others323(1.5%)

280(1.5%)-13.4%

Sales of safety-related products decreased due to the economic
slowdown in China mainly and decreased demand for semiconductor
and machine tool industries.

20,157(100.0%)18,180(100.0%)- 9.8%*Round down to the millions(Sales ratio)

Total*The classification by product partially changed from FY2023.
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While sales of operator interfaces expanded by improved delivery
schedule of electronic components, sales of switches decreased due
to adjustment of inventory stocks and decreased demand forsemiconductors and machine tools.

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

Automation & Sensing

Systems
Sales of control panels for semiconductor and logistic-related
equipment decreased in Asia Pacific.
8

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

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9Orders received(Unit: million yen)

*Round down to the millions

FY2023 1Q
Amount ofordersreceived

Backlog

FY2024 1Q
Amount ofordersreceived

YoY

Backlog

YoY

11,057 19,875

6,550-40.8%

12,329-38.0%

Americas

4,874

6,405

2,681

-45.0%

3,863-39.7%(Europe, Middle East, Africa)

EMEA

3,555

7,428

4,164

+17.1%

9,947+33.9%

Asia Pacific

3,746

7,232

2,257

-39.7%

3,392-53.1%

23,233 40,942

15,655-32.6%

29,532-27.9%

Japan

Total

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10Order received (per quarter) Order received in Japan has bottomed and has been in a gradual recovery trend.
 In EMEA, it increased compared to 4Q due to forex impact.
 In Americas and Asia Pacific, it decreased due to the influence of distribution Inventory, etc.
(Unit: million yen)

FY2023

FY2024

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

OrdersreceivedJapan

11,057

19,875

8,524

17,9408,736

17,057

6,193

13,5146,550 12,329

Americas

4,874

6,405

4,515

6,635

3,703

6,038

2,668

4,972

2,681

3,863

3,555

7,428

4,418

8,229

3,457

8,531

3,683

8,975

4,164

9,947

3,746

7,232

2,901

5,411

2,588

4,211

2,924

4,085

2,257

3,392

23,23340,942

20,35938,21818,48635,83815,47031,547 15,655 29,532*Round down to themillions

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

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Backlog11

Consolidated performance [Consolidated balance sheet]
Highlights of assets
 While cash and deposits decreased, fixed
assets, inventory assets, and tradereceivables increased. Therefore, total
assets increased by 2.37 billion yen
compared to the end of previous FY.

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

Highlights of liabilities

Highlights of net assets

 Due to the decreased overdue
income tax, etc., total liabilities
decreased by 1.36 billion yen
compared to the end of previous FY.

FY2023(previous FY)

 Although earned surplus decreased,
foreign currency translation adjustment
increased. Therefore, net assets
increased by 3.72 billion yen comparedto the end of previous period.

FY2024(end of June)

YoY

Current asset

54,51854,892+374

Fixed asset

49,71751,709+1,991

Current liabilities

32,05933,296+1,237

Non-current liabilities

13,362

10,766-2,596

Net assets

58,81362,538+3,724

Total assets

104,235

106,601+2,366

56.1%

58.3%

+2.2%

Shareholders’ equity ratio
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Consolidated performance [Consolidated cash flow statement]
Cash Flows by operation activities

Cash Flows by investing activities

Cash Flows by financing activities

 It was approximately -0.41 billion yen due to thepayment of income tax, increased inventory
assets and decreased trade payables, etc.

 Due to the acquisition of fixed
assets, etc., it was approximately
80 million yen.

 It was approximately -2.33 billion
yen due to repayment of borrowingsand expenses including dividends.

FY2023 1Q

FY2024 1Q

YoY

CF from operation activities

-158

-414

-256

CF from investing activities

-602

78

+681

Free cash flows (FCF)

-760

-336

+424

CF from financing activities-1,917-2,327-409

Cash and cash equivalents at end of period

13,03912,969- 70

Capital expenditures

772

928

+155

Depreciation and amortization

841

946

+105

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13

Forecast for the FY2024

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CONFIDENTIAL

14

Consolidated business forecast for the FY2024
 Forecasts remain unchanged(Unit: million yen)
※Round down to the millions

ActualFY2023

Ordinary income

83,86937,37623,315
14,06014,403

Net income attributable toshareholders of parent company

10,144

Net sales
Gross operating income
SG&A
Operating income

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

Sales ratio

348.37100.0%
44.6%
27.8%
16.8%
17.2%

FY2024

Forecast

Sales ratio

YoY

81,00038,50024,70013,80013,800100.0%
47.5%
30.5%
17.0%
17.0%

- 3.4%+3.0%+5.9%- 1.9%- 4.2%

12.1%

9,500

11.7%

- 6.4%

ー

326.23ー- 22.14- 5.51

EUR-yen rate (JPY)135.51138.15

130
140

+1.85

CNY-yen rate (JPY)

19.75

18.50

- 1.25

USD-yen rate (JPY)

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Consolidated business forecast for the FY2024(Unit: million yen)
*Round down to the millions

FY2023
ActualFY2024
Forecast

YoY

HMI

35,76036,200+ 1.2%

Industrial Relays & Components

15,476

13,900-10.2%

Automation & Sensing

10,327

10,200- 1.2%

Safety & Explosion Protection

16,282

15,700- 3.6%

Systems

4,848

4,000

-17.5%

Others

1,174

1,000

-14.8%

83,86981,000- 3.4%

Domestic sales

34,51933,300- 3.5%

Overseas sales

49,34947,700- 3.3%（58.8%）（58.9%）

Total(Ratio of overseas sales)

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FY2024 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

JPY130Approx. 80 mil. yen

Approx. 20 mil. yen

EUR

JPY140Approx. 140 mil. yen

Approx. 10 mil. yen

CNY

JPY18.5

Approx. 60 mil. yen

Approx. 15 mil. yen

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References

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

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

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Sales classification by segment
HMI (HumanMachine Interface)

Industrial Relays &Components

・Industrial switches
・Joysticks
・Pilot lights
・Operator interfaces

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

Automation &Sensing
・Programmable logic
controllers
・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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20

A new framework for manufacturing innovation


Mr. Takao Funaki assumed the position of Director at the general shareholders meeting in June
2023. He is responsible for procurement & SCM, and manufacturing in addition to the business inNorth America.
Mr. Marc Enjalbert, the Executive Officer in charge of APEM has concurrently served
manufacturing since July to establish a framework for promoting manufacturing innovation globally.

Takao Funaki
Director, Senior Executive Officer
Copyright IDEC Corporation. All rights reserved.

Marc Enjalbert
Executive Officer in charge of APEM and Manufacturing
21

Integrated Report
The integrated report, “IDEC Report 2023” was published in June 2023.
（https://us.idec.com/idec-us/en/USD/integrated-report-2023）
 By the classification of both financial and non-financial information systematically, the report
is composed to make wide range of stakeholders understand our processes for improving
company value and initiatives for realizing sustainable society comprehensively.
Copyright IDEC Corporation. All rights reserved.

22

External Evaluations
 IDEC was selected as FTSE indexes for the second consecutive year,
followed by 2022.
 We were also selected as compositions of SOMPO Sustainability
Index in addition to S&P/JPX Carbon Efficient Index for the third
consecutive year since 2021.

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23

This material contains our plans and performance forecast, which we have planned and expected inaccordance with available information as of August 3, 2023.
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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24