TERASAKI REPORT
1 April 2021 – 31 March 2022

Securities code 6637

Financial Highlights
Net sales

O pe ratin g profit

37,856 million JPY

1,637million JPY

Up 9.0% year on year

Down 28.7% year on year

Ordi nar y profi t

Profit attributable to TERASAKI shareholders

1,944 million JPY

1,275 million JPY

Down 35.2% year on year

Outlook for Financial Year 2022
Net sales

Operating profit

42,070 million JPY

2,110 million JPY

Up 11.1%year on year

Up 28.9%year on year

Ordinary profit

Profit attributable toTERASAKI shareholders

2,240 million JPY

1,580 million JPY

Up 15.2%
year on year

Up 23.8%
year on year

Down 41.8% year on year

Dividends/Payout ratio
Dividends per share（JPY）
Payout ratio（%）

18.4
13.9
10.2
142018
FY

9.5

1616

2019
FY

2020
FY

1818（Forecast）

2021
FY

2022
FY

President's Message
We would like to express our sincere
gratitude to our shareholders for continued
support.
Capital investments remained strong inJapan and also steadily increased overseas,d e s p i t e t h e i m p a c t o f C O V I D -19 i n s o m ecountries and regions. In the shipbuilding
industry, being one of our major markets, shipowners' eagerness for investments recoveredagainst the backdrop of favourable shipping
market conditions. Therefore, orders for ourproducts and systems, including thoseespecially for container ships and LNG ships,
also increased.
In addition, as stimulated by the trend topromote the environmental protection ofharbours and the transition to a decarbonizedsociety, there have been increases in inquiries
for on-shore power supply systems. On theother hand, there remain some concerns
regarding the impact of supply constraints
such as mainly semiconductors and resin
products shortage, soaring prices of raw
materials including copper, the high cost oflogistics, and the sharply rising energy prices.
Under these circumstances, for the
consolidated financial year ended in March31, 2022, sales increased in Circuit Breakers
and Marine Systems, thus resulting in net
sales increase year on year. However,operating profit, ordinary profit, and profit
attributable to TERASAKI shareholders
decreased in spite of various efforts to reduce
production costs and other expenses, andRepresentative Director
President Executive Officer

Taizo Terasakithese are attributed to the impacts from thesoaring prices of raw materials (e.g. copper)
and the rising cost of logistics.
In the financial year 2022, we will continue
our efforts to reduce business risks byendeavouring to lower production costs andother expenses, while keeping a close watcho n t h e i m p a c t o f C O V I D -19, s o a r i n g r a w
materials prices, logistics costs, and parts
supply constraints. We will also strive tofurther enhance our corporate governance inline with the transition of the company into
the Standard Market on the Tokyo Stock
Exchange. We will strengthen our global
co-operation with the "TEAM TERASAKI" spirits
and respond swiftly and effectively tocustomers' needs.
We earnestly ask for continued support
from our shareholders and partners as we
pursue these challenges.
June 2022

Industrial Systems

Marine Systems

Pursuing business challenges as a leadinginternational manufacturer of electric power
distribution and control systems in the marine market

Demonstrating originality in theindustrial market with our electric
power distribution and control systems

Circuit Breakers

Achieving and maintaining as themost trusted circuit breakers
manufacturer in the world

TERASAKI in constantpursuit of innovativeelectric power
distribution and control
Engineering & Lifecycle Services
Medical Devices
systems
Contributing to human health andOffering solutions to customers all over thesafety as a manufacturer of medical
devices

world through the engineering and lifecycle
servicesSegment Performance by Region and ProductJapanNet sales percentage

Net sales
Segment profit▶︎Marine Systems

58.1％

22,004 million JPY （Up 0.4% year on year）
2,021 million JPY （Down 12.9% year on year）

Sales decreased for products supplied for container
ships and bulk carriers.

▶︎Industrial Systems

Sales increased for projects involving power andindustrial plants in Japan and overseas markets,
although the sales of products related to distributed
power supplies such as co-generation systems
decreased.

▶Medical Devices

Sales decreased because the installation of COVID-19
test-related equipment has run its course, despite thesigns of recovery seen in terms of capital investments
in medical devices and clinical testing devices.

Asia
Net sales percentage▶Engineering & Lifecycle Services

Sales increased for engineering services
related to ships' inspections and domestic
railway-related facilities, although there weredeclines in sales for projects that arerequired to meet the regulations to promoteconservation of marine environments, and insales for engineering services related toindustrial systems.

▶Circuit Breakers

Sales in Japan increased in the capital
investments sector, although the sales ofproducts for the marine market weresluggish. Sales for overseas increased in
Oceania and West Asia.

10,685 million JPY （Up 28.8% year on year）
138 million JPY （Down 74.3% year on year）

Net sales
Segment profit

Profit in this segment dropped substantially due to the soaring prices of raw materials, and other factors.

28.2％▶︎Marine Systems

Sales increased year on year.

▶Engineering & Lifecycle Services

Sales decreased slightly because of the continued impact from restrictions on movements/travels due toCOVID-19 and the reduced number of projects that are required to meet the regulations to promoteconservation of marine environments, although sales for TERASAKI Shore Connection: on-shore power
supply systems increased and there was a recovery in demand for equipment modifications in Singapore.

▶Circuit Breakers

Sales increased because some capital investment projects were restarted.

EuropeNet sales percentage

Net sales
Segment profit▶Circuit Breakers

13.6％

5,165 million JPY （Up 14.8% year on year）
243 million JPY （Down 4.7% year on year）

Sales remained strong in the U.K. and also increased for large projects in the Middle Easterncountries.

▶Engineering & Lifecycle Services

Sales of engineering services related to circuit breaker replacement increased, although there
was a decline in sales for projects that are required to meet the regulations to promoteconservation of marine environments.

By Product Group
System Products
Net sales

20,506 million JPY

Circuit Breaker Products
Net sales

Orders received

26,401 million JPY（Up 2.2% year on year）

CircuitBreakerProducts

17,349 million JPY

45.8 %（Up 18.4% year on year）

Net sales
percentage byproduct group（Up 25.5% year on year）

23,113

Order backlogmillion JPY（Up 5,895 million JPY from theend of FY2020）（Note）We do not disclose orders received or orderbacklog for Circuit breaker products because
they are manufactured in accordance withour planned production schedule.

SystemProducts

54.2%

Consolidated Financial Highlights
Net sales

Operating profit/Operating profit ratio（Units: Million JPY）

40,00036,700（Units: Million JPY）

37,85634,72430,000

2,297

6.6

6.6

2,00002019
FY2020FY

Ordinary profit（Units: Million JPY）

2,832

Proﬁt attributable to TERASAKI shareholders
Proﬁt per share（Units: Million JPY）

2,500
2,000

1,944

2,000

2,035

2,192

1,637

1,000

1,275
156.20168.2997.92

5002020
FY2020
FY02021
FY2019FY2020FY64202021
FY

Equity ratio(Units: JPY)

300

（Units: %）

250

1,500

1,000

2019
FY

2019
FY

Profit attributable to TERASAKI
shareholders /Profit per share

2,998

104.302021
FY（Units: %）

8

1,000

10,0000

Operating proﬁt ratio

2,411

20,0003,000

Operating proﬁt

3,000

200

71.7

72.2

2020
FY2021
FY67.11501002021
FY5002019
FY

Consolidated Financial StatementsConsolidated Balance Sheets
2020FY（As of 31 March 2021）（Units: Million JPY）

2021FY

2020FY（As of 31 March 2022）

Net sales［Assets］
Current assets

34,07036,613

Non-current assets

14,50215,804

Property, plant and equipment

9,651

9,788

109

148

Intangible assets
Investments and other assets

4,742

5,868

Total Assets

48,57352,418［Liabilities］
Current liabilities

10,627

11,437

Non-current liabilities

3,088

3,113

Total Liabilities

13,716

14,55033,15934,227

Capital stock

1,236

1,236

Capital surplus

2,244

2,244

Retained earnings

29,67930,747

Treasury stock, at cost

△1△1Accumulated other comprehensive income

1,659

3,602

37

38

Total Equity

34,85637,868

Total Liabilities and Equity

48,57352,418［Equity］
Shareholders' equity

Consolidated Statements of Income （Units: Million JPY）

Non-controlling interests（Note）Monetary amounts are rounded off to one million JPY.

Cost of sales
Gross profit
Selling, general and administrative expenses

1 April 2020
（Fromto 31 March 2021）

34,7242021FY

1 April 2021
（Fromto 31 March 2022）

37,85624,99028,091

9,733

9,764

7,436

8,126

2,297

1,637

Non-operating income

801

382

Non-operating expenses

10075

Operating profit

Ordinary profit

2,998

1,944

Extraordinary income

32

Extraordinary loss

02

Profit before income taxes

3,000

1,944

Income taxes - Current

774

566

Income taxes - Deferred30

99Profit for the period

2,196

1,278

Profit attributable to noncontrolling interests

32

Profit attributable to TERASAKI shareholders

2,192

1,275

Consolidated Statements of Cash Flows （Units: Million JPY）
2020FY

Cash flows from operating activities

1 April 2020
（Fromto 31 March 2021）

3,420

2021FY

1 April 2021
（Fromto 31 March 2022）

39

Cash flows from investing activities

△928

△933

Cash flows from financing activities△1,181△923

Effect of exchange rate changes
on cash and cash equivalents

542

562

Net increase（decrease）in cash and cash equivalents

1,853△1,254

Cash and cash equivalents at beginning of year

11,172

13,025

Cash and cash equivalents at end of year

13,025

11,770Topics

The Terasaki Group’s Approach to Achieving SDGs
Operating according to our mission, the Terasaki Group aims to help resolve social issues through ourbusiness activities and to achieve sustainable development goals together with our stakeholders.
＜The Terasaki Group's SDGs＞

Contribute to society by oﬀering safety,
security and comfort to all our customers
with world-class products and services
that we develop, manufacture and provide.

Our efforts to achieve SDGs include :・Measures to suppress climate change, protect the marine environment, and promote energy savings・Contributions to the medical field・Approaches in extending of product life-cycles
・Safe and responsible waste management, the improvement of work environments, and the enhancement of sound corporate governance
We will continue to enhance our efforts to achieve our SDGs and disseminate more information to ourstakeholders in due course.

Examples of our approach to these SDGs:
Protecting the wealth of the seas
We contribute to the sustainable developments of the entire shipping industry by providing products andservices that help conserve the marine environment. These include our TERASAKI Shore Connection, which
reduces environmental pollutants discharged from anchored ships, by feeding the necessary amount ofelectrical power from onshore to ships staying alongside of wharf while their generator engines are shut down.

TERASAKI Shore Connection

Green energy for all
We have entered the solar power generation market as a leading
manufacturer of DC circuit breakers.
We contribute to the development of green energy by providing our products
and services to many mega solar power plant projects.

Supporting opportunities for healthy lives for all

DC circuit breakerWe manufacture medical devices for the medical field to protect the livesof people, as well as clinical testing devices required to diagnose infectious
diseases and illnesses. Our medical devices are used in hospitals and clinics inJapan and overseas.

Promoting a healthier work-life balance
We are making efforts to maintain good health of our employees and create asafer and more comfortable work environment, by encouraging employees totake paid leave and by expanding childcare and nursing-care support systems.

Clinical testing device

Corporate Information /Stock Information（As of 31 March 2022）
Corporate ProfileSharesCompany Name

Terasaki Electric Co., Ltd.

Total number of shares authorized to be issued

52,000,000

Head Office

6-13-47 Kamihigashi, Hirano-ku, Osaka 547-0002 Japan

Total number of issued shares

13,030,000

Foundation

1 October 1923

Number of shareholders

Established

1 April 1980

Capital1,236 million JPY

Employees

1,994（Consolidated）

Major Shareholders
Shares owned

Share

Terasaki Co., Ltd.

2,200

16.89

Taizo Terasaki

1,133

8.70

Terasaki Trust Co., Ltd

866

6.64

Kaori Aramaki

738

5.66

Business Planning, R&D,

The Master Trust Bank of Japan, Ltd.

686

5.27

Affairs

Yuzo Terasaki

677

5.19

Hozansha Co., Ltd.

653

5.01546（Non-consolidated）
Consolidated Subsidiaries

815

Domestic: 5, Overseas: 8Director ＆ Executive Officer（As of 29 June 2022）
Representative Director
President
Taizo Terasaki
Executive Officer

Shareholder（1,000 shares）（％）

Director
Senior Managing
Executive Officer

Kazunobu Kumazawa Disclosure, General

Director
Managing
Executive Officer

Junji Nagase

Accounting & Finance,
Information SystemDepartment

DirectorManaging
Executive Officer

Terasaki Employee Stock Ownership

Masao Nishida

Marine, Industrial
Department
System Division

583

4.47

Terasaki Kyoeikai

548

4.21

Director
Executive Officer

Shunji Okada

Engineering, Life Cycle

NOMURA CUSTODY NOMINEES LTD-TK１ LIMITED

441

3.38Director
Executive Officer

Yoshihiro Umemoto Circuit Breaker Division

Director
Executive Officer

Hirofumi Kobayashi

Director
Executive Officer

Kazuhiro Yoshikawa Medical Device

Sales and Marketing
Circuit Breaker Division

Director
Audit & Supervisory Makoto Suto
Committee Member（Note）Share percentages are calculated without treasury stock（1,021 shares）.

Distribution by Shareholders

13,030thousand shares（815 shareholders）

Director
Audit & Supervisory
Kunio Chiyoda
Committee Member(External)
Director
Audit & Supervisory
Shunji Takano
Committee Member(External)
General Manager,

Executive Officer

Syujiro Hamano Human Resources &Executive Officer

Masaji Nishino

Chief Audit Executive
Internal Audit Section

Executive Officer

Hideki Nakagawa

General Manager,
East Japan Area

General Affairs

6-13-47 Kamihigashi, Hirano-ku, Osaka 547-0002 Japan
TEL：+81-6-6791-2701
https://www.terasaki.co.jp/english/* Treasury stock（1,021 shares）is included in individual investor andothers.