Financial Report for the Fiscal Year Ended March 31, 2024
May 24, 2024

Contents
1. Summary of Financial Results FY March 2024
2. Future Outlook
3. Medium Term Business Plan 2026: Status©2024

ICOM INCORPORATED

2

1.Summary of Financial Results FY March 2024

©2024

ICOM INCORPORATED⚫

Financial Highlights FY March 2024⚫

Increase /Decrease in Sales and Revenue⚫

Increase /Decrease in Assets and Cash Flow⚫

Sales Increase /Decrease by Product Category⚫

Sales Composition by Product Category⚫

Sales Increase /Decrease by Region⚫

Sales Composition by Region⚫

Sales by Segment - Geographic Segment –⚫

Outline of FY March 24 Investment Plan Results⚫

About ROE and PBR

3

Financial Highlights FY March 2024

Sales:

37,117（Million yen）

（YoY: +8.6%）

R&D Expense:

3,962(Million yen）

（YoY: +2.6%）* FY March 2024: 18 new products©2024

ICOM INCORPORATED

Op. Profit:

3,415（Million yen）

（YoY: +19.8%）

Production:

31,867（Million yen）

（YoY: +23.2%）* Robot Assembly: 272,055 units（YoY: +33.5%）
4

Increase /Decrease in Sales and Revenue
Continuing(Million Yen)

Net sales
Cost of sales
Cost of sales（Profit ratio）
Selling, general andadministrative expenses
Operating income（Profit ratio）

previous

fiscal

year,

sales

Year ended
March 31, 2024
37,11721,08016,03743.2%

increased due to the growth of stock business, as well

11,436

12,621

In addition, the yen depreciated against the U.S. dollar

2,850
8.3%

3,415
9.2%

and the euro by 6.6% and 10.2%, respectively,

as the recovery in the supply of electronic components
and other production materials and the stabilization of
production,

led

to

an

expansion

of

sales

compared to the assumptions made at the beginning of
the period, resulting in record-high sales for the second
consecutive year and higher operating income than theProvision for
Product Amortization
Warranty of Goodwill

previous year.
3,415

R&D Expense

However, SG&A expenses increased due to an increasein labor costs resulting from the depreciation of the yen

OthersSales Increase(FOREX/Sales)

which

opportunities.

（Million Yen）

Advertising

2,850

the

Year ended
March 31, 2023
34,173
19,887
14,286
41.8%

Personnel
ExpensesProfitChangefromand amortization of goodwill.
* Stock Business as a Percentage of Sales(Million Yen)
Year ended
March 31, 2023

Op. Profit Ratio

8.3%

FY March 2023
©2024

ICOM INCORPORATED

Operating Profit +5.65 Million
Yen

Op. Profit Ratio

9.2%

FY March 2024

Net sales
Product sales
Stock business（Stock sales ratio）

34,17331,561
2,612
8%Year ended
March 31, 2024
37,11734,0103,107
8% 5

Increase /Decrease in Assets and Cash Flow
◼ Assets(Million Yen)
Year ended
March 31, 2023

Year ended
March 31, 2024

49,16617,997
67,16350,07723,081
73,159

5,340
1,373
6,713

5,988
1,425
7,414

58,35960,786

2,091

4,958

60,45065,745

AssetsCurrent assets
Fixed assets
Total Assets
Liabilities
Current liabilities
Fixed liabilities
Total Liabilities
Net Assets
Shareholders' equity
Accumulated othercomprehensive income
Total Net Assets◼ Cashflow
Net cash provided byoperating activities
Net cash provided by(used in) investing activities
Net cash used in financing
activities
Cash and cash equivalents at
end of year
©2024

ICOM INCORPORATED(Million Yen)
Year ended
March 31, 2023

Year ended
March 31, 2024

3,418

2,208

2,484

-3,675-718-1,12427,97825,993◼ Assets
Assets vs Previous Fiscal Year: +5.995 Mil yen
Increase: Investment securities, inventories, guarantee deposits, assets related toretirement benefits, investments/other, marketable securities, buildings/structures,property, plant and equipment, current assets, land, accounts receivable
Decrease: Cash and bank deposits, deferred tax assets

Liabilities vs Previous Fiscal Year: +700 Mil yen
Increase: Allowance for bonuses, income taxes payable, current liabilities, andprovision for product warranties
Decrease: Accounts payable

Net Assets vs Previous Fiscal Year: +5,294 Mil yen
Increase: Net income attributable to the parent company, net unrealized gains(losses) on available-for-sale securities, foreign currency translation adjustments,
and accumulated adjustments for retirement benefits
Decrease: Dividends from surplus◼ Cashflow
Cash Flows from Operating Activities: 2,208 Mil yen
Increase: Income before income taxes, depreciation and amortization, decrease intrade receivables
Decrease: Inventories, income taxes paid, operating activities and other trade
payables, interest and dividend income

Cash Flows from Investing Activities: -3,675 Mil yen
Increase: Interest, dividends received, proceeds from investment securities sales
Decrease: Payments for purchase of property, plant and equipment, increase intime deposits with maturities longer than 3 months, purchase of investment
securities, and decrease in other investing activities

Cash Flows from Financing Activities: -1,124 Mil yen
Decrease: Dividends paid

6

Sales Increase /Decrease by Product Category(Million Yen)
Year ended
March 31, 2023

Year ended
March 31, 2024

34,173
15,929
5,458
3,678
9,106

37,117
17,812
6,010
4,036
9,255

Net sales
Land Mobile
AmateurMarineOthers（Million Yen）

AmateurMarineOthersLand Mobile: 11.8% increase YoY
Sales increased in all regions due to increased demand
as a countermeasure against geopolitical risks, growthin stock business continuing from the previous fiscal
year, and sales expansion taking advantage ofopportunities created by reduced supply from othercompanies.

Amateur: 10.1% increase YoY
Sales increased due to stable production as the supply of
production materials began to stabilize, as well as theeffect of new products launched during the fiscal year.

Marine: 9.7% increase YoYLand Mobile

As the supply of production materials began to stabilize,
shipments were able to satisfy the recovery in demandassociated with the revitalization of economic activity
overseas and other factors, resulting in an increase in sales.

Others: 1.6% increase YoY

FY March 2023
©2024

ICOM INCORPORATEDFY March 2024

Sales increased due to strong sales of aviation radio
communication equipment and maritime navigationequipment for overseas markets, despite the impact of aforecasted decline from a large tender project in theprevious fiscal year.

* See next slide for sales composition by product category.

7

Sales Composition by Product Category
Options/Others 16%

Navigation 1%
Avionics 6%

FY March 2024
Network 2%

Land Mobile 48%

Sales
37.1 Billion Yen

Marine 11%

Amateur 16%©2024

ICOM INCORPORATED

8

Sales Increase /Decrease by Region(Million Yen)
Year ended
March 31, 2023

Year ended
March 31, 2024

34,173
11,267
12,425
5,580
4,899

37,117
11,337
13,5796,245
5,955

Net sales
Japan
North America
EuropeAsia ＆ Oceania（Million Yen）

Japan

Americas

EMEA

Asia/
Oceania

Japan: 0.6% increase YoY
Despite a forecasted decline from a large tender for aviation
radio equipment for government agencies in the previous fiscal
year, sales increased due to higher rental demand and growthin the stock business in line with the recovery of economic
activity in land mobile radio business, and software-related
sales in the "Other" category.

Americas: 9.2% increase YoY
Sales increased due to back orders from the previous fiscal year
being resolved as the supply of production materials began tostabilize, sales expansion in land mobile radio equipment seizing
opportunities created by reduced supply from other companies,
and the exchange rate of the yen depreciating 6.6% against the
U.S. dollar compared to the same period last year.

EMEA: 11.9% increase YoY
Sales increased as the supply of production materials began tostabilize, enabling supply to meet strong demand in the maincategories of land mobile radio and amateur radio. IP radio
equipment performed well, in addition to a 10.2% depreciationof the yen against the euro year on year.

Asia & Oceania: 21.5% increase YoY

FY March 2023
©2024

ICOM INCORPORATEDFY March 2024

In Australia, our main market, sales of land mobile radio andaviation radio equipment remained strong due to the increaseof economic activities, and the effect of new amateur radio
products also contributed to the increase in sales.

* See next slide for sales composition by region.

9

Sales Composition by Region
EMEA
RATIO

JAPAN

16.8%

RATIO

(YOY: +11.9%)

30.5%(YOY: +0.6%)

AMERICAS
RATIO

36.6%

(YOY: +9.3%)

ASIA/
OCEANIA
RATIO

16.1%

(YOY: +21.5%)©2024

ICOM INCORPORATED

10

Sales by Segment - Geographic Segment –FY March 2023
Period Total

Million Yen

Sales

FY March 2024

Ratio

Period Total

Ratio

34,173100.0%

37,117100.0%

+8.6%

Japan

18,10453.0%

19,478

52.5%

+7.6%

North America

12,46436.5%

13,648

36.8%

+9.5%

Europe EMEA)

2,131

6.2%

2,421

6.5%

+13.6%

Asia/Oceania/Other

1,472

4.3%

1,568

4.2%

+6.5%

Million Yen

Japan
13,64812,464

North America

9,596

1,885

*Companies in each Segment

19,478

18,104

15,590

2,131

1,204

FY March 2022

Japan
©2024

Change from
Previous Period

ICOM INCORPORATED

1,472

FY March 2023

North America

Europe2,421
1,568
FY March 2024

EuropeAsia/Oceania

Icom Inc., Wakayama Icom Inc.
Icom Information Devices Inc.,
Macrotechnos, Co. Ltd.
Icom America, Inc., Icom Canada,
Icom Brazil, Icom Central America
Icom (Europe) GmbH,
Icom Spain, S.L.
Icom (Australia), Pty., Ltd,
Icom Asia Co. Ltd., Purecom Co., Ltd.

Asia/Oceania

11Outline of FY March 24 Investment Plan Results
FY March 2024 Investment Plan Results
Three Year
Plan
CapitalInvestment

Redevelopment of
the engineering
environment/
Officeenvironment

Acquire New
Technologies

Year One
Results

3.5～4.0

1.0

Billion Yen

Billion Yen

5.0

2.0

Billion Yen

Billion Yen

Research &Development
New Business

Others©2024

Securing anddeveloping humanresources, etc.

ICOM INCORPORATED

1.0

500

Billion Yen

Million Yen

500

120

Million Yen

Million Yen

Outline of Investments Made
• Renovation of a former sales facility in Japan to secure a working
environment for approximately 50 engineering personnel.
• Purchased high-grade equipment necessary for engineering work
(Measuring, high-performance PCs, other equipment)• Purchased the Icom Europe building.
• Invested in development of solutions for satellite radio, 5G, North
American public safety business, etc., with multiple partners• Announced a 5G gateway device, and are developing a platform thatwill lead to monetization.
• Developed/launched industry's first “LTE + Marine” hybrid radio• Introduction of line work inspection experiment using AI toward asmart factory• Developed a chip for the next (4th) generation device platform• Entering new markets and securing new customers with “LTE +Marine” hybrid products, to to build new product fields and stockbusiness revenues.
• Strategic M&A (acquisition of software company) and businessalliances with partners, etc.
• Provide wireless equipment for industry-academia collaboration andultra-high frequency experiments, etc.
• Reinforcement of local software development team for overseas
technical support• Training by external organizations, such as employee training by job
level and next-generation leader development.

12About ROE and PBR■ In the fiscal year ending March 31, 2024, both ROE andPBR maintained an upward trend.

Share Price:
End FY March 2023: 2,528円
End FY March 2024:

3,395円ROE:
End FY March 2023: 4.4%
End FY March 2024:

5.49%

PBR:
End FY March 2023: 0.61
End FY March 2024:©2024

ICOM INCORPORATED

0.75
13

2. Future Outlook©2024

ICOM INCORPORATED⚫

FY March 2025 Earnings Forecast⚫

FY March 2025 Dividend Forecast

14

FY March 2025 Earnings Forecast
FY March 2025 Consolidated Earnings Forecast

38,000 Million Yen

3,500 Million Yen
Net Income Attributable to Owners of the Parent 2,800 Million Yen

Sales

Investment PlanFY March 2024 Results

Operating Profit

Depreciation & Amortization

R&D Expense

1,644 Million Yen

1,335 Million Yen

4,169 Million Yen

1,941 Million Yen

1,164 Million Yen

3,962 Million Yen

34,173
2,850

3,461

FY March 2023

Sales (Million Yen)

38,000
3,500

3,415
2,800

2,574

ICOM INCORPORATEDNet Income Ratio

Capital Investment

37,117

©2024

9.2%
7.4%

Operating Profit Ratio

FY March 2024

Operating Profit (Million Yen)FY March 2025

Net Income (Million Yen)

15

FY March 2025 Earnings Forecast■ Sales
Economic trends in the fiscal year ending March 31, 2025 are expected to remain uncertain due to thesituation in Ukraine and geopolitical risks in the Middle East, as well as rising prices and logistics costs causedby the weak yen. Also, although supply difficulties of semiconductors and other major electronic components
are stabilizing, the delivery time for some key parts continues to be prolonged. In the market for wirelesscommunication equipment, the Group's target market, we expect global demand for wireless equipment toremain firm, and forecast sales to exceed the level of the fiscal year ending March 31, 2024.

■ Capital Investment
Continuation of the commercialization of 5G-related equipment, which we have been working on since 2021,
and promotion of automation and “Smart Factory” in Wakayama Icom Incorporated.

■ Assumed Exchange Rate
Exchange RateFY March 2025
Full Year Assumption

FY March 2024
Actual Results

USD

145.00 Yen

143.14 Yen

EURO

159.00 Yen

154.28 Yen©2024

ICOM INCORPORATED

16

FY March 2025 Dividend Forecast
Mid-term

End of Year

Full Year

Dividend Payout Ratio

FY March 2023 Result

25 Yen47 Yen72 Yen40.1%

FY March 2024 Result

25 Yen72 Yen97 Yen40.2%

FY March 2025 Plan

25 Yen54 Yen79 Yen40.5%* Dividend Reduction Planned
However, in accordance with our shareholder return policy, we will continue to pay a minimum annual dividend of 50 yen per shareor a consolidated dividend payout ratio of 40%, whichever is higher. If the Company achieves higher-than-expected profits, it willconsider further shareholder returns as appropriate.
97

79

72
72
47

54

EoY
MoY

©2024

ICOM INCORPORATED

25

25

25

FY March 2023 Result

FY March 2024 Result

FY March 2025 Plan

17

3. Medium Term Business Plan 2026: Status⚫

Introduction⚫

Review of Management Objectives and Initiatives to Enhance
Corporate Value©2024

ICOM INCORPORATED

18

Introduction■ This document is a partial update of the “Medium-Term Business Plan 2026” issued andpublished on May 11, 2023.
■ Reason for partial update and release: Because the market environment in the first year (fiscal
year ending March 31, 2024), as projected in the “Medium-Term Business Plan 2026,” greatly
exceeded the assumptions made when the plan was formulated, and the plan was achieved one
year ahead of schedule.
■ The next slides focuses only on the main target figures and initiatives.
For reference only: URL for Medium-Term Business Plan published and released on May 11, 2023:
https://www.icom.co.jp/ir/medium_term/©2024

ICOM INCORPORATED

19

Review of Management Objectives and Initiatives to Enhance Corporate Value■ Revised plan for consolidated sales and operating income
Million Yen

Sales

Operating
ProfitFY March
2024
FY March
2025
FY March
2026
FY March
2024
FY March
2025
FY March
2026

Dividend Policy

Result &Revision of Plan

ChangeSales(Mil Yen)

35,00037,117+2,117

Operating Profit

36,50038,000+1,50038,00040,000+2,000

3,000

3,415

+415

3,400

3,500

+100

3,800

4,000

+200

Original Plan
(May 11, 2023)(May 14, 2024)

Annual dividend per share of 50 yen or consolidated
dividend payout ratio of 40%, whichever is higher.

Med-term Business
Plan 2026
400
Forecast Target

371(Mil Yen)

341
297

305
279

282

380

40
34

35

28

20

23

10

■ Since the market environment for the fiscal year ending March 31,©2024

ICOM INCORPORATED

40

30

24
18

2024, exceeded the assumptions made when the plan wasformulated and the first year target was achieved one year aheadof schedule, the Company has revised the goals of the mediumterm business plan in light of current performance trends.
■ We will continue to pursue profit, increase corporate value, andother goals that we have set for ourselves through the fiscal year
ending March 31, 2026, while aiming for consolidated net sales of
50 billion yen, which is the Company's medium-term goal.

50

10

150

0
FY March

FY March

FY March

FY March

FY March

FY March

FY March2019 Result 2020 Result 2021 Result 2022 Result 2023 Result 2024 Result 2025 PlanFY March
2026

Target20

Review of Management Objectives and Initiatives to Enhance Corporate Value＝Sustainable Management:
Icom: 100 year Company＝2024

Icom has have overcome many technological advancements and economic fluctuations while
keeping our core competence of “wireless” in mind, and have listened to the needs of ourcustomers and stakeholders. Icom will continue to aim to be a 100-year company, with the 60th
anniversary as an interim milestone.
©2024

ICOM INCORPORATED

21

Review of Management Objectives and Initiatives to Enhance Corporate Value■Sustainability Initiatives
We are enacting our environmental responsibilities withenhanced quality and quantity of climate change
disclosure required of Prime market-listed companies.

■Various Information Disclosure Initiatives
In order to demonstrate management transparency, theCompany is committed to providing a variety of
information on its management, financial condition andfuture prospects.
• Improvement of dialogue with investors• Increased media publicity (TV, radio, newspapers, etc.)• Disclosure of IR information (not only in Japanese but
also in English)• Respond to ESG-related questionnaires from various
ministries and agencies, local governments, etc.
©2024

ICOM INCORPORATED◼ Climate Initiatives:
TCFD:
In the fiscal year ending March 31, 2024, theCompany endorsed the TCFD and joined the
TCFD Consortium.
CDP:
The Company responded to the CDPquestionnaire. We received a “C” score forclimate change. We will continue to work on
environmental measures.

◼ IR Disclosure:In FY March 2024, we held our own online
financial results and small meetings withinvestors. We also released English versions of
our financial results presentation materials andother documents.
Icom was also introduced in various media(Examples below).

• TV Tokyo: Documentary program“Shirarezaru Gulliver”• Bunka Hoso Broadcasting: “Zipangu Gold”• Mainichi Broadcasting: “The Leader”
22

Review of Management Objectives and Initiatives to Enhance Corporate Value■Strategic M&A and partnering initiatives◼ July 13, 2023 Press Release
Acquisition of Macrotechnos Co., LtdIn wireless communication equipment, software is rapidly
becoming more sophisticated, and although we are
aggressively hiring new graduates and experienced personnel,
securing highly skilled human resources has become apressing issue. By making Macrotechnos a subsidiary, we will
accelerate the speed of development and further improve theproduct development capability of our own group, which isone of our strengths.

September 13, 2023 Press Release
Co-operating Supplier to Expo 2025

©2024

ICOM INCORPORATEDThe IC-SAT100M satellite transceiver, which will be loaned forthis project, enables communication between devices via
orbiting satellites, ensuring communication even in the eventof communication failures due to disasters, etc. The SW9033* seismometer from IMV Corporation is a cloudconnectable seismometer that is shock-resistant, compact,and high-performance at the same time. The combination of
the two products will provide reliable communication in theevent of a large-scale earth quake. We hope that this new
seismic monitoring device will be introduced to many
participating countries through the Expo 2025 site, and that it
will be used as an effective means of earthquake
countermeasures in areas with inadequate communication
infrastructure.
23* The SW-9033 is still in development

Notes Regarding Forward-Looking Statements
Forward-looking statements in this document, including earnings forecasts, are based on information currently
available to the Company and certain assumptions that the Company deems reasonable, and are not intended as apromise by the Company that they will be achieved. Actual results may differ significantly due to various factors.
Among these forward-looking business and accounting matters, the following are the principal risks thatmanagement recognizes as having the potential to materially affect the consolidated company's financial condition,
results of operations, and cash flows.

Forward-looking statements are based on the judgment of the Group as of the end of the current fiscal year.
(1) Risks related to production bases(2) Risks related to procurement of raw materials(3) Risks related to exchange rate fluctuations(4) Risks related to product warranties(5) Risks related to intellectual property rights(6) Risk of a large-scale infectious disease outbreak equivalent to a pandemic, and other risks
N.B. Please refer to Section 3 [Business and Other Risks] of the Annual Securities Report for details regarding therisks listed above.
©2024

ICOM INCORPORATED

24

Contact:
Icom Incorporated
Office of the CEO
Tel: +81 (0)6-6793-5301
Email: BMD＠icom.co.jp• Icom Incorporated, Icom and the ICOM logo are registered trademarks of Icom Incorporated.
• All other company names and/or product names are trademarks and/or registered trademarks of their respective owners.

URL:https://www.icomjapan.com/