Abalance ) : Financial Results Presentation for 3Q FY06/23

Financial Results Presentation

for 3Q FY06/23

Abalance Corporation

TSE Standard: 3856 / May 2023

Copyright © 2023 Abalance Corporation

Corporate Profile

• Company name
• Establishment
• Businesses
• Major subsidiaries
• Overseas subsidiaries
• Equity-methodaffiliate
• Head office
• President & Representative Director
• Stock listing
• Fiscal year-end
• Total assets (end-March. 2023)
• Net assets (end-March. 2023)
• No. of employees (end-Dec.2022)
• Financial forecast (FY06/23)

Abalance Corporation (Group Holding Company) April 17, 2000

Green energy, construction machinery, IT, healthcare (photocatalyst) WWB, VALORS, VSUN, Japan Photocatalyst Center Consolidation of VSUN Inc. in Vietnam (Oct. 2020)

• Expanding exports to the US market
• Largest Japanese solar panel manufacturer (capacity: 5.0GW)

(Source data： BloombergNEF, Tier1 PV Module Maker List [February 24, 2023])

• Preparing UPCoM listing on Hanoi Stock Exchange (HNX)
• Exploring IPO opportunities on other foreign stock exchanges

Meiji Machine Co., Ltd.

Tennozu First Tower 16F 2-2-4 Higashishinagawa, Shinagawa-ku, Tokyo

Yasuaki Mitsuyuki

TSE Second Section (Oct. 2018) ⇒ TSE Standard (Apr. 2022)

June

1. billion yen

1. billion yen
   341 in Japan (incl. affiliates); 1,500 overseas (VSUN)
   Net sales: 215.0 billion yen (upwardly revised: 110.0 billion yen ⇒

1. billion yen)
   Ordinary profit: 13.5 billion yen (upwardly revised: 2.8 billion yen ⇒

1. billion yen)

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Copyright © 2023 Abalance Corporation

Our Solar Panel Business: Strengths

(1) One-stop solution

ーWe offer an end-to-endsolution to customers with our own panel manufacturing facility in Vietnam.ーUnlike most solar panel distributors, we control the entire supply chain from production to installation.

✔In-house plant: Largest production capacity among Japan manufacturers

Planning

Basic Plan	Application
⚫Land acquisition	⚫METI
⚫Local sourcing	⚫Power company
⚫Due diligence	⚫Municipality
⚫Budgeting	⚫Local residents

⚫Simulation ⚫Financial ⚫Legal compliance institutions

VSUN			Owned In-House
			⚫PPA business
Design	Development and		O&M	Recycling
Construction
⚫Surveying	⚫Application process		⚫Remote	⚫Recycling
	monitoring	⚫Used product
⚫Drawing	⚫Parts procurement
	⚫Timely issue	resale
⚫Construction	⚫	Construction
		resolution
proposal		management
	Sales	⚫Legal inspection
⚫Quotation	⚫Foundation and civil
	engineering work	⚫Mowing and
⚫Quality check
⚫Installation work	⚫Investors	cleaning
⚫Simulation
⚫	Electrical	⚫Business	⚫Repair
⚫Budgeting
	engineering	corporations

⚫Municipalities

(2) Proven performance record

ーOur achievements in the Green Energy business:

1.Our own power plant (140MW), 2. Power plant and facility development (400MW), 3. In-house panel manufacturing (2.9GW)

⇒Total of 5.5GW

ーOur goal for in-house panel manufacturing ⇒ 8.0GWby 2030

＊We are considering revising the target value, since the current annual production capacity has reached 5.0GW.

ーOur goal for in-house capacity ⇒ 1GWby 2030 (combined for Japan and overseas)

ーOur focus on solar sharing ⇒ Planning to grow through collaboration with Meiji Machine Co., Ltd.

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Copyright © 2023 Abalance Corporation

(3) High-quality modules from VSUN

• We were awarded the Bronze Medal from EcoVadis (headquartered in France)* in 2022.

*We ranked #64 out of more than 75,000 participating companies worldwide. *EcoVadis is a leading provider of ESG ratings for global supply chains.

• We were included in Bloomberg's Tier 1 PV Module Maker List.
• We were named one of the "Top Performers" in the "PV Module Reliability Scorecard" by PV

Evolution Labs (PVEL)* in 2022.

*PVEL is a testing organization specializing in module reliability and performance for solar power generation.

1. Pioneering structure for decarbonized energy
2. • We led the industry in creating a green transformation (GX)-focused organization.
   • We have strengthened our PPA business → Established "Decarbonization Corporate Business Division" at WWB Corporation.
3. MAXAR: diverse proprietary products
4. • We have developed Maxar LIGHT series (lightweight modules that use fluorine resin instead of glass, etc.).
5. Module reuse and recycling business
6. • We have established PV Repower Corp. (in Mar. 2021) to address the issue of module disposal.
7. Innovative technologies
8. • We are collaborating with Associate Professor Tanaka of the Graduate School of

Engineering, University of Tokyo* (our technical advisor) to explore renewable

energy certification systems, supply-demand adjustment systems, etc.
*Member of the Nikkei Decarbonization Committee	3

Copyright © 2023 Abalance Corporation

Performance Highlights [Consolidated; 3Q FY06/23]

• Net Sales: 196% increase YoY; Ordinary Profit: 2,191% increase YoY
• • Revenue drivers: Global demand for renewable energy, reduced congestion in regional ports and harbors
  • Profit drivers: Price increase to customers, declining transportation fares, increased electricity sales, in addition, foreign exchange gains, equity in earnings of affiliates, etc.

Ordinary profit (billions of yen)

Net sales (billions of yen)

(Forecast)

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Copyright © 2023 Abalance Corporation