TOKYO KEIKI : Financial Results Briefing for the Fiscal Year Ended March 31, 2022 (FY2021)

Financial Results Briefing for

the Fiscal Year Ended March 31, 2022 (FY2021)

May 13, 2022

Forward-looking statements in this presentation are based on assumptions made by our management based on information available at the time of publication. Therefore, please be aware that there may be differences due to factors such as the business environment in the future.

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Financial Results Summary

• Results for FY2021
• • Sales declined slightly, and operating profit increased significantly.
  • The main reason for the decline in revenues was a significant decline in revenues in the Defense business at Defense & Communications Equipment Business due to the off-periodin projects up to the fiscal year under review. All other segments saw higher sales. The main reason for the increase in profits was an improvement in the cost of sales ratio.
  • Hydraulics and Pneumatics Business posted higher sales and profits year on year, but racked up operating loss due to the impact of soaring raw material prices.
  • Fluid Measurement Equipment Business achieved record-high net sales and operating profit.
  • Annual dividends are ¥5 for the 125th anniversary, totaling ¥30.
• Progress of FY2022 Plan and Medium-Term Business Plan
• • Plan to increase sales and profits by capturing strong demand.
  • Prioritize investment in human resources and R&D.
  • Incorporate external environmental risks to a certain extent, and implement necessary measures.
  • The plan is somewhat out of line with the initial plan for the second year of the medium-term management plan, but the company continues to work toward achieving the initial plan.
  • The annual dividend is planned to increase the ordinary dividend by ¥5, for a total of ¥30.
• TOKYO KEIKI Vision 2030 Progress
• • Steady progress is made in future growth drivers and foundation enhancement. It will further accelerate.
• Topics
• • Marine Systems Business's efforts to reduce greenhouse gas emissions and launch strategic products in existing vessel marketplace.

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Table of Contents

1. Results for fiscal year ended Mar 2022 (FY2021)
2. Plans for the year ended Mar 31, 2023 (FY2022) and medium-term business plans
3. Topics

References

Business Trends

Our Business

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3

Results for FY2021	Plan for FY2022 & Progress of the	Topics
Medium-Term Business Plan

Net Sales and P/L

• Net sales declined slightly, all profits exceeded the previous forecast, and profits increased significantly year on year.
• The operating profit margin and ROE are positive y-o-y, but the Company is aiming to further improve them.

	FY2020	FY2021	YoY change	Vs. Previous forecast
(Million yen)			(Announced on Feb. 10, 2022)
Results	Results
	Amount	Rate	Forecast	Amount		Rate
Net sales	42,081	41,510	▲572	▲1.4%	42,100	▲590		▲1.4%
Operating profit	1,250	1,635	+385	+30.8%	1,440	+213		+14.8%
Ordinary profit	1,458	1,926	+468	+32.1%	1,730	+196		+11.3%
Profit attributable to	945	1,493	+549	+58.1%	1,310	+183		+14.0%
owners of parent
Operating profit	3.0%	3.9%	+0.9pt
margin
ROE	3.1%	4.6%	+1.5pt

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Results for FY2021	Plan for FY2022 & Progress of the	Topics
Medium-Term Business Plan

Net Sales and Operating Profit by Segment

 Marine Systems	: Sales and profits increased due to robust sales of equipment for new ships and maintenance services.
 Hydraulics and Pneumatics	: Although sales and profits increased due to demand recovery in all markets, operating loss was
	affected by soaring raw material prices.
 Fluid Measurement	: Both net sales and operating income reached record highs due to strong sales of mainstay ultrasonic
Equipment	flowmeters and strong sales of fire extinguishing facilities and inspection work.

• Defense & Communications : Although sales and profits increased in Communication & Control Equipment business, sales and

Equipment	profits declined overall because of a decline in the Defense business due to the off-period in projects.
 Others	: Sales increased in Printing Inspection Equipment business as replacement demand recovered, but
	profit decreased overall due to a decrease in sales of mainstay ultrasonic rail inspection cars in
	Railway Maintenance Business.

Net sales

			YoY change	Previous forecast
			(Announced on Feb. 10, 2022)
	FY2020	FY2021
(Million yen)				Change
Results	Results
	Amount	Rate	Forecast
			Amount	Rate
Marine	8,522	8,700	+179	+2.1%	8,800	▲100	▲1.1%
Systems
Hydraulics						▲304	▲2.6%
and	10,351	11,526	+1,175	+11.4%	11,830
Pneumatics
Fluid
Measurement	4,003	4,432	+429	+10.7%	4,350	+82	+1.9%
Equipment

Defense &
Communi-	16,281	13,884	▲2,397	▲14.7%	14,130	▲246	▲1.7%
cations
Equipment
Others	2,924	2,966	+43	+1.5%	2,990	▲24	▲0.8%
Total	42,081	41,510	▲572	▲1.4%	42,100	▲590	▲1.4%

		Operating profit
		YoY change	Vs. Previous forecast
		(Announced on Feb. 10, 2022)
FY2020	FY2021
			Change
Results	Results	Amount	Rate	Forecast
		Amount	Rate
246	388	+141	+57.4%	340	+48	+14.1%
▲424	▲115	+309	-	20	▲135	-
647	915	+267	+41.3%	750	+165	+22.0%
537	312	▲225	▲41.9%	270	+42	+15.6%
330	250	▲81	▲24.4%	150	+100	+66.7%
1,250	1,635	+385	+30.8%	1,440	+195	+13.5%

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*Segment sales and operating profit are before adjustments. 5