Meidensha : Results Briefing for FY2022.Q2

MEIDENSHA CORPORATION

RESULTS BRIEFING FOR THE FISCAL 2022 1ST HALF

October 31, 2022

Takeshi Miida, President & Executive Officer

Copyright © MEIDENSHA CORPORATION All Rights Reserved.

Table of Contents

P1. Table of Contents

P2. Summary

P3. Impact of Changes in the External Environment on Results (1H Results)

P4. 1H Results Overview (PL, BS, CF)

P5. Capex, Growth Investment, R&D Expenses

P6. 1H Results and Full Year Forecast by Segment

P7. Impact of Changes in the External Environment on Results (Full Year Forecast)

P8. 1H Results and Full Year Outlook of Major Segments / Analysis of Operating Income P12. Trends in Orders Received

P13. SG&A Expenses

P14. Topics (Business Activities and Sustainability)

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1. FY2022 1H Results Summary

Orders: ¥158.1 billion Net sales: ¥111.7 billion Operating loss: ¥4.8 billion Final loss: ¥2.7 billion

(Net income attributable to owners of the parent)

YoY change

Orders (+¥32.6 billion)

Difference from initial forecasts Orders (+¥21.1 billion)

Net sales (+¥12.7 billion) Net sales (+¥6.7 billion)

Operating income (-¥2.1 billion) Operating income ( -¥2.0 billion)

		YoY comments
				2Q	YoY	Change from
					Results	change	initial
	-	Power	Sales and income increased in Power T&D, driven by factors such as growth in power	forecast
		Infrastructure	transmission and distribution products in North America	Net sales	+ 4.4	+ 1.5
		Sales and income decreased in Power & Energy due to a delay in sales associated with	Operating income	+ 0.0	(0.1)
				prolonged delivery times for parts and materials and a deterioration of the income mix
	-	Public, Industrial &	Sales increased and income decreased in Social Infrastructure Systems and Railways sectors	Net sales	(0.9)	+4.2
		Commercial Sector	due to the impact of high part and material prices and a deterioration of the income mix	Operating income	(2.2)	(0.2)
		Sales and income decreased in Water Infrastructure due to previously very strong performance
				falling away from the previous year
	-	Mobility & Electrical	Motor Drive Solutions was on par with the previous year, and sales increased and income slightly	Net sales	+8.9	(2.2)
		Components	decreased in EVs due to the impact of the increase in models delivered	Operating income	+ 0.5	(1.4)
				Electronics Products continued to perform well, and income was kept at the same level as the
				previous year despite sales decreased in Mobility T&S
	-	Field Engineering	Although sales were kept at the same level as the previous year amid the impact of prolonged	Net sales	(0.0)	(0.9)
				delivery times for parts, income decreased due to a deterioration of the income mix	Operating income	(0.5)	(0.2)

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2. Impact of Changes in the External Environment on Results (1H Results)

Sales were below target in multiple businesses, and the impact of the rise in part and

material prices was greater than anticipated

• Factor analysis of operating income (Comparison of initial forecast and results for FY2022 1H)

(Billions of yen)

FY20221H

initial

forecast

FY20221H

results

	(2.8)
			Decrease in
				income due to
				sales shortage
			from initial forecast
				(1.8)
Power & Energy,
Motor Drive Solutions, EV,					(0.6)
Mobility T&S, Field Engineering

Decrease in sales from initial forecast -¥5.2 billion

Increased net impact of high material and part prices in 1H

Initial forecast -¥1.0 billion ->Result -¥1.6billion Power T&D, Water Infrastructure, Motor Drive Solutions and Electronics Products exceeded forecasts

Decrease in

income due to deterioration of income mix

(0.2)

Improvement of Public, Industrial & Commercial Sector, deterioration of Water Infrastructure, etc.

(4.8)

		+0.3
+0.3
Increase in income	Improved
income due to
due to increased
weak yen
sales from initial

forecast

(Power T&D, etc.)

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3. FY2022 1H Results Overview

Although orders and sales increased, operating loss deteriorated year on year.

Total interest bearing debt decreased and FCF increased

	FY2020	FY2021	FY2022		FY2022		YoY	YoY change %	Difference
	1st Half	1st Half	1st Half		1st Half		from forecast
(Millions of yen)			change %	（C-A）
Results	forecast (A)	forecast (B)		Results（C）		（C-B）
Order	112,712	125,549	137,000		158,188		126.0%	32,638	21,188
Net sales	88,967	98,950	105,000		111,742		112.9%	12,791	6,742
Operating income	(3,550)	(2,750)	(2,800)		(4,892)			(2,142)	(2,092)
Ordinary income	(3,720)	(2,734)	(2,800)		(3,957)			(1,223)	(1,157)
Net income	(3,316)	(2,180)	(2,000)		(2,746)			(565)	(746)
attributable to
owners of the parent
Total assets	255,988	263,956			282,780		107.1%	18,824
Net assets	86,727	95,671			103,144		107.8%	7,472
Total interest bearing debt	47,015	44,064			43,342		98.4%	(721)
Shareholders' equity Ratio	32.7%	35.0%			35.3%			0.3%
FCF	4,567	7,203			9,455			2,251

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