Financial Report for the Fiscal Year Ended March 31, 2023
May 26, 2023

Contents
1. Summary of Financial Results FY March 2023
2. Future Outlook
3. Medium Term Business Plan 2026

©2023

ICOM INCORPORATED21.Summary of Financial Results FY March 2023

©2023

ICOM INCORPORATED⚫

Financial Highlights FY March 2023⚫

Sales Composition by Product Category⚫

Sales Increase /Decrease by Product Category⚫

Sales Composition by Region⚫

Sales Increase /Decrease by Region⚫

Factors of Increase /Decrease in Operating Income⚫

Net Sales by Segment - Geographic Segment -3

Financial Highlights FY March 2023
◼ Sales

Although the Company was forced to reduce production due to the worldwide difficultyin obtaining electronic components etc., it achieved record sales due to the easing ofsocietal restrictions caused by COVID-19, the normalization of economic activities, andthe yen's depreciation due to the interest rate policy of the U.S. and other countries.
Land Mobile Radio: 26.4% Increase YoY

Amateur Radio: 6.1% Decrease YoY

Sales increased in overseas markets due to increased
global awareness of crisis management as well as
gaining sales by taking advantage of supply issues ofcompetitors.

Sales decreased due to the inability to meet strong
demand that continued from 2021, due to production
cutbacks from difficulty in obtaining electronic components
and other items.

Marine Radio: 27.4% Increase YoY

Options/Others: 30.7% Increase YoY

Sales increased due to active demand for leisure use inEurope and the U.S., as well as gaining sales by taking
advantage of supply issues of competitors.

Increase due to delivery of a large tender project foraviation radio communication equipment in Japan in thefirst quarter.

©2023

ICOM INCORPORATED

4

Financial Highlights FY March 2023
◼ Operating Profit
Increased due to significant year-on-year increase in sales, despite soaring prices ofraw materials such as electronic components and cost increases at overseas
subsidiaries due to yen depreciation.

◼ Ordinary Income
Foreign exchange gains (the yen depreciated 20.4% against the U.S. dollar and 7.3%
against the euro year on year) lead to increased profit.

©2023

ICOM INCORPORATED

5

Financial Highlights FY March 2023

Sales:34,173(Million yen)

(YoY: +20.9%)

R&D Expense:3,862(Million yen)

(YoY: -1.75%)* FY March 2023: 12 new products©2023

ICOM INCORPORATED

Op. Profit:2,850(Million yen)

(YoY: +169.3%)

Production:25,875（Million yen）

(YoY: +27.6%)* Robot Assembly: 203,820 units(YoY: +48.5%)
6

Financial Highlights FY March 2023
Consolidated Sales Million Yen
40,000Operating Profit Million Yen
3,000

30,000Ordinary Profit Million Yen
4,000
3,000

2,000

20,000

2,000
1,000

10,0000

1,0000FY March 2021 FY March 2022 FY March 2023

SG&A Expenses Million Yen
15,0000FY March 2021 FY March 2022 FY March 2023

R&D Expenses Million Yen
5,000

FY March 2021 FY March 2022 FY March 2023

Production Result Million Yen
30,0004,000
10,00020,000

3,000
2,000

5,000

10,0001,00000
FY March 2021 FY March 2022 FY March 2023

©2023

ICOM INCORPORATED0FY March 2021 FY March 2022 FY March 2023

FY March 2021 FY March 2022 FY March 2023

7Financial Highlights FY March 2023
Net Income Attributable to

Net Assets at end of Period Million Yen

Owners of the Parent (Million Yen)

Net Income Per Share Yen

80,00020060,000

15040,000

10020,000

503,0002,0001,00000
FY March 2021 FY March 2022 FY March 2023

Equity Ratio %Return on Equity ROE %100580460340220100
FY March 2021

©2023

0
FY March 2021 FY March 2022 FY March 2023

FY March 2022

ICOM INCORPORATEDFY March 2023

FY March 2021

FY March 2022

FY March 2021

FY March 2022

FY March 2023

Cash Flow Million Yen

FY March 2023

FY March2021

FY March2022

FY March2023

Cash Flow fromOperating Activities

2,9712,0843,418

Cash Flow from
Investing Activities

732

3,435

2,484

Cash Flow fromFinancing Activities

1,941

717

718

Cash andEquivalents at
End of Year24,12522,48927,9788

Sales Composition by Product Category
Options/Others 14%
Navigation 1%Avionics 7%

Network 2%

Sales
34,173

Land Mobile 48%

Million Yen
Marine 11%

Amateur 17%©2023

ICOM INCORPORATED

9

Sales Increase /Decrease by Product Category◼ Land Mobile Radio: Strong export sales of satellite PTT radio, and increased sales from competitor
supply issues.

◼ Amateur Radio: Strong demand in EU/US, but sales decreased due to difficulty in obtaining parts.
◼ Marine Radio: Sales increased due to high leisure use demand and competitor supply issues.
◼ Options/Others: Increase in sales due to delivery of large aviation tender project in the first quarter.
(Million Yen)

AmateurMarineOptions/Others

Land Mobile

FY March 2022
©2023

ICOM INCORPORATEDFY March 2023
10

Sales Composition by Region
EMEA
RATIO

JAPAN

16.3%

RATIO

(YOY: +24.9%)

33.0%(YOY: +8.6%)

AMERICAS
RATIO

36.4%

(YOY: +29.7%)

Amateur
8.1%
Amateur
19.7%

Options
19.6%

Marine22.7%

Land Mobile
38.0%

ASIA/OCEANIARATIOOptions
37.8%

14.3%

(YOY: +27.2%)

Options
21.8%

Options
21.6%
Land Mobile
53.6%

Marine13.1%

Amateur
17.1%

Land Mobile
48.3%

Marine0.4%

Amateur
27.0%

Marine15.1%
Land Mobile
36.1%

©2023

ICOM INCORPORATED

11Sales Increase /Decrease by Region◼ Japan: Increase in revenue due to delivery of a large tender project.

Market environment improvement on top of measures taken for alignment with the economic situation.

◼ International: Revenues increased in all regions due to the normalization of economic activities andheightened awareness of crisis management.

(Million Yen)34,173
EMEA

28,277Japan

FY March 2022
©2023

ICOM INCORPORATED

Asia/Oceania

Americas

FY March 2023
12

Factors of Increase/Decrease in Operating Income
Sales increased significantly due to the normalization of economic activities worldwide and the delivery of alarge project in Japan in the first quarter. In addition, the weaker-than-expected yen exchange rate resulted inrecord-high sales for the first time since the fiscal year ended March 31, 2008, and operating income also
exceeded initial forecasts. However, SG&A expenses increased due to an increase in labor costs resulting fromthe weaker yen and the resumption of sales activities such as exhibitions that had been postponed due to
COVID-19.
PersonnelExpenses(Million Yen)

Advertising
ProfitChangeFees &Commissions

Others

2,850

1,058
Sales Increase(FOREX/Sales)
Op. Profit Ratio

3.7%
FY March 2022
©2023

ICOM INCORPORATED

Operating Profit +17.92 Million Yen

Op. Profit Ratio
8.3%
FY March 2023
13

Net Sales by Segment - Geographic Segment FY March 2023
Period Total(Million Yen)Sales

FY March 2022

Ratio

Period TotalRatio

34,173100.0%

28,277100.0%+20.9%

Japan

18,10453.0%

15,59055.1%+16.1%

North America

12,464

36.5%

9,596

33.9%

+29.9%

Europe (EMEA)

2,131

6.2%

1,885

6.7%

+13.1%

Asia/Oceania/Other

1,472

4.3%

1,204

4.3%

+22.3%

Million Yen)

18,104

16,923
15,59012,464

9,596
8,077

1,820

1,885

1,119

FY March 2021

Japan
©2023

Change from
Previous Period

ICOM INCORPORATED

1,204

FY March 2022

North America

Europe2,131
1,472
FY March 2023

*Companies in each Segment
Japan

Icom Inc., Wakayama Icom Inc.
Icom Information Devices Inc.

North America

Icom America, Inc., Icom Canada,
Icom Brazil, Icom Central America

EuropeAsia/Oceania

Icom (Europe) GmbH,
Icom Spain, S.L.
Icom (Australia), Pty., Ltd,
Icom Asia Co. Ltd., Purecom Co., Ltd.

Asia/Oceania

142. Future Outlook©2023

ICOM INCORPORATED⚫

FY March 2024 Earnings Forecast⚫

FY March 2024 Dividend Forecast

15

FY March 2024 Earnings Forecast
FY March 2024 Consolidated Earnings Forecast

35,000 Million Yen

2,900 Million Yen
Net Income Attributable to Owners of the Parent 2,330 Million Yen

Sales

Investment PlanFY March 2023 Results

Operating Profit8.3%6.7%

Operating Profit Ratio
Net Income Ratio

Capital Investment

Depreciation & Amortization

R&D Expense

2,265 Million Yen

1,249 Million Yen

3,856 Million Yen

847 Million Yen

855 Million Yen

3,862 Million Yen

34,17328,277
1,058

2,850

35,000

2,900

2,574

2,330

FY March 2023

FY March 2024

1,093
FY March 2022

Sales（Million Yen）
©2023

ICOM INCORPORATED

Operating Profit (Million Yen)

Net Income (Million Yen)

16

FY March 2024 Earnings Forecast⚫SalesSupply shortages of semiconductors and other major electronic components are beginning to show signs ofgradual improvement, however the impact of COVID-19 is not expected to be completely eradicated.

In addition, although higher raw material costs and cost-push inflation are expected, demand for radioequipment is expected to remain firm due to heightened global awareness of crisis management.

⚫Capital Investment
Commercialization of 5G-related equipment, which we have been working on since 2021, and promotion ofautomation and “Smart Factory” in Wakayama Icom Incorporated.

⚫Assumed Exchange Rate
Exchange RateFY March 2024
Ful Year Assumption

FY March 2023
Actual Results

USD

128.00 Yen

134.29 YenEURO

138.00 Yen

139.96 Yen©2023

ICOM INCORPORATED

17FY March 2024 Dividend ForecastMid-term

End of Year

Full Year

Dividend Payout Ratio

FY March 2022 Result

25 Yen25 Yen50 Yen65.6%

FY March 2023 Result

25 Yen47 Yen72 Yen40.1%

FY March 2024 Plan

25 Yen40 Yen65 Yen40.0%* 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.
725065254025

MoYEoY

472525FY March 2022 Result©2023

ICOM INCORPORATEDFY March 2023 Result

FY March 2024 Plan

18

3. Medium Term Business Plan 2026

©2023

ICOM INCORPORATED⚫

Medium Term Business Plan 2026 Outline⚫

Sustainability⚫

Three Year Plan⚫

Business Environment and New Medium Term Business Plan Theme⚫

Strengthening Our Business Base⚫

Long Term Vision

19

Medium Term Business Plan 2026 Outline◼ Business Strategy① Strengthening our Core Business• Development of new high frequency bands and new platforms• Developing "Only Icom Can Do" products in the satellite radio field• Deployment of different inter-protocol communication know-how to other radio categories② Challenge New Business Models• Expand stock business in overseas markets• Strategic partnerships with business synergies leveraging technology in key wirelesscategories③ Sustainable Management towards becoming a 100 year old Company• Further improve our value proposition based on sustainable management• Initiatives for sustainable growth (ESG)• Continued improvement and evolution of manufacturing through robotic production andsmart factories©2023

ICOM INCORPORATED

20

Medium Term Business Plan 2026 Outline◼ Key Performance Indicators
New goals have been set to improve and optimize

FY March
2024

FY March2025

FY March
2026

Sales

35.0
Billion Yen

36.5
Billion Yen

38.0
Billion Yen

Operating Profit

3.0
Billion Yen

3.4
Billion Yen

3.8
Billion Yen

corporate fundamentals and/or ESG initiatives on thebasis of sound business strategy and management.

Dividend Policy

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

◼ Financial Goals
Aim to maintain stable shareholder returns at all times, while expanding returns and realizing investment
plans in line with targeted business expansion.
• More effectively use the Group's strong financial position (Focus on profit growth)• Investing in further technological advancement (Including HR investment)• Strategic expansion outside of core business categories• Further improvement of the Group's working and engineering environment©2023

ICOM INCORPORATED

21

Sustainability

Icom: Towards a 100 year Company
Medium Term Plan
2023
(FY March 2021-FY March 2023)• Emergency COVID-19
measures• Transformation of earnings
structure• Entry into different industries
other than radio• Commercialization ofmanufacturing knowhow©2023

ICOM INCORPORATED

Medium Term Plan2026
FY March 2024-FY March 2026)

The Road to 100
60 th Anniversary: 2024

• Strengthening company
fundamentals to become ahigh-profit entity• Improving existing products
performance and functionality• Products “Only Icom Can Do“• Evolve from two-way radio tosystem solution total producer
company• Increase value proposition

Reaching 100(FY March 2027～)• Further innovation of profitstructure• Acquiring new wirelesstechnologies• Integration with video, AI, andsensing technologies• Transition from sales business tosystem solutions business• Sustained increase in corporatevalue

22Three Year Plan
◼ FY 2026 Target

FY March 2026 Target

38.0

3.8

Billion Yen

Billion Yen

10Profit Growth Measures

Medium Term Business
Plan 2026

341297305

2423

Sales (Billion Yen)

279

282

181035036538038••28➔•

Operating Profit(Billion Yen)FY March
FY March
FY March
FY March
FY March2019 Result 2020 Result 2021 Result 2022 Result 2023 Result©2023

ICOM INCORPORATEDFY March2024 PlanFY March2026 Target•
23Business Environment and New Medium Term Business Plan Theme

Opportunities

RisksThemes• Further acceleration of LTE
replacement and integration of IP
technology along withreplacement by digitization in theradio market.

• Impact of new lifestyles after theend of COVID-19 on business andrestructuring of the radiocommunication market.

• Strengthening our corporate
foundation to generate profits
toward and support becoming a
100-year old company.

• New technologies and businessmodels in the AI and IoT fields will
replace existing business modelsand stimulate new demand.
• Increased interest in sustainability.
Movement to emphasize corporate
commitment to social issues.

(which players will continue to survive)• Prolonged supply risk ofsemiconductors and otherproduction materials.
• Further increase in global
geopolitical risks.

• Impact of U.S.-China trade
friction on the global economy.

• Reinforcement of the corporate
structure to generate stableearnings in response to market
changes.
• To be a company that provides
not only radio equipment but also
total solutions incorporating
various wireless technologies.
• Further enhance Icom’s value
proposition through strategic
M&A and business alliances.

©2023

ICOM INCORPORATED

24

Strengthening Our Business Base: Core Business
Improved Performance and Functions of Products with New Platforms and Technologies◼ Amateur Radio• Utilize technical know-how gained from digital technology and expand into other productcategories• Further improved usability and intuitive operation, expansion of requested/critical functions• Restructuring of product lineup◼ Land Mobile Radio• Further improvement of design/components for downsizing/reducing power consumption➔ Environmental considerations• Development of functions for implementing video with radio products• Common development, increased development speed through the introduction of new platforms• Further evolution of encryption technology• Provide product solutions, including optional items©2023

ICOM INCORPORATED

25

Strengthening Our Business Base: Core Business◼ Network• Further development of IoT gateways forseamless/diverse communication• Use signal processing technology toimprove convenience for a diverse rangeof users, including medical, nursing care,and retail stores• Next-generation deployment of existingproducts with 5G compatibility• Increase cloud based/linked products andfixed RF networks solutions◼ User-focused Development• Strengthen product capabilities byincorporating feedback from CX(Customer Experience)©2023

ICOM INCORPORATED* System image diagram of the VE-PG4 multi-protocol gateway device
26Strengthening Our Business Base: New Business
A Total Wireless Provider via Narrowband RF Technology and Media Expansion◼ AI Engine Core
• AI functions that can be processed by general-purpose CPUs ➔ Video analysis/
audio/signal processing◼ Development of video processing functions and devices• Implement video transmission functions to wireless devices by enhancing video processing
functions (Data compression/decompression technology/camera devices, etc.)◼ Development of various sensor technologies, IoT devices and other wireless applicationproducts• Develop smart wireless devices, propose solutions for healthcare, Smart Home andSmart Factory markets• Development of wireless application products: E.g. Watchdog, lost-and-found tags,
indoor location systems• System on Chip and RF-IC development for advanced radio logic platform* Icom developed SoC©2023

ICOM INCORPORATED27

Strengthening Our Business Base: New Business◼ Expansion of stock business, establishment of system proposal and support businessdivision• Expansion of overseas stock business through collaboration with telecom carriers• Strengthen system integration and systems proposal business◼ Exploring new communication methods• Development of communication methods using light and sound waves
in addition to radio waves in the millimeter frequency band

◼ New market development combining traditional RF technologies• Introduction of various hybrid radios and deployment of new
protocols (Digitalization, etc.)©2023

ICOM INCORPORATED* IP700/IP730D series RF+LTE Hybrid Radios
28Strengthening Our Business Base: Three Year Investment Plan
Further Improve Value Proposition based on Sustainable Management
Medium-term Business Plan 2026 Three year Investment Plan

CapitalInvestment•••

Research &Development

••••
•
••
•

Others•©2023

ICOM INCORPORATED29Long Term Vision◼ Be a manufacturer that supports society through wirelessWithin 10 years
Consolidated Sales

communication technology and sustainable development• Reform profit structure by expanding stock business• Entry into different industries other than radio• Commercialization of manufacturing (Selling knowhow)

50.0 Billion Yen
ROE: 8~10%
PBR: 1 (Target)➔Become a system integrator for 5G introduction and Smart Factory

Sales Trend(Billion Yen)

New BusinessMedium Term Business
Plan 2023 Results

305341

Stock BusinessCore BusinessMedium Term Business
Plan 2026 Target

350365500ROE
108～10%53800

FY March2023

FY March203X

PBR x
1.511x

0.5
FY March 2020 FY March 2021 FY March 2022 FY March 2023 FY March 2024 FY March 2025 FY March 2026
ResultResult
ResultResultTargetTargetTarget©2023

ICOM INCORPORATEDFY March 203X
Target0Target
FY March2023

FY March203X30

Notes Regarding Forward-Looking Statements
There are statements contained in this document that are deemed forward-looking statements regarding future businessoutlook of the Company.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual
results to differ materially.
These statements are made as of the date of publication of this document, and the Company assumes no obligation to
update or release forward-looking statements in the event that subsequent changes in economic or market conditions affect
the Company's performance.
Risks and uncertainties that could affect actual results include, but are not limited to;（1）Economic conditions in major markets (e.g., Japan, the Americas, Europe, and Asia) andsudden changes in product supply and demand.
（2）Change in trade regulations, laws, and regulations in domestic and major overseas markets.
（3）Significant fluctuations in the exchange rate of the U.S. dollar, euro, or other currencies against
the yen.
（4）Significant market fluctuations in capital markets.
（5）Changes in social infrastructure due to rapid technological change, etc.
However, there may also be other factors than the above that may affect business performance.

©2023

ICOM INCORPORATED

31Contact:
Icom Incorporated
Office of the CEO
Tel: +81 (0)6-6793-5301
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.

Email: BMD＠icom.co.jp
URL:https://www.icomjapan.com/