Slide 1: Financial Results Briefing for FY2024
Financial Results Briefing for FY2024 (Fiscal Year Ended March 31, 2025) DAIHEN Corporation June 3, 2025 Note : This document has been translated from the original Japanese version for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the Ja
Slide 2: Agenda
Agenda 1. FY2024 Results 2. FY2025 Financial Results Forecast 3. Progress on the FY2026 Medium-Term Plan Initiatives 4. Capital Policy and Cash Flow P. 2
Slide 3: FY2024 Results
FY2024 Results P. 3
Slide 4: FY2024 Results
FY2024 Results FY2023 FY2024 YoY FY2024 results results 2 forecast (1) (4) (2)-(1) Change (3) Change Net sales 188.5 226.3) +37.8| +20.0% 205.0} +10.4% Energy Management _ 97.6 120.8 +23.2| +23.8% 106.0| +14.0% pectoyiearametion) 34.8 32.7 “2.1 “5% 31.0| _ +5.7% Material Processing 55.9 72.6 +16.7|
Slide 5: FY2024 Factors for Changes in Operating Profit (YoY)
FY2024 Factors for Changes in Operating Profit (YoY) (Billion yen) Sales YoY increase +1.0 *1 +2.9 Advanced expenses, *2 etc. Expansion of Operating -3.9 cost reduction effects Operating profit +2.0 profit 15.1 16.1 FY2023 FY2024 results results *1 Advanced expenses, etc.: development funds -0.9, de
Slide 6: Energy Management Segment: Net Sales and Operating Profit
Energy Management Segment: Net Sales and Operating Profit (Billion yen) Net sales Sales and profit increased due to increases in 120 120.8 EMS- sales of power distribution products, and related power-receiving facilities for plants, storage +23.2 battery systems, as well as the impact of new 105 9
Slide 7: Energy Management Segment: Orders Received
Energy Management Segment: Orders Received Beginning order backlog (Billion yen) from newly consolidated subsidiaries +2.5 140 128.8 131.3 EMS- Orders received also increased [+19.5] related significantly excluding the impact of 120 [111.8] the beginning order backlog from Overseas prior-year cons
Slide 8: Factory Automation Segment: Net Sales and Operating Profit
Factory Automation Segment: Net Sales and Operating Profit Net sales Sales decreased as automobile-related (Billion yen) 34.8 -2.1 investments were postponed both in 35 32.7 Japan and overseas. Operating profit decreased mainly due 30 Clean to advanced expenses for business robots expansion. 25
Slide 9: Factory Automation: Net Sales by Region
Factory Automation: Net Sales by Region Decline in most regions due to sluggish automobile-related investments; increase in Europe driven by consolidation of Lorch Schweißtechnik GmbH. 35 (Billion yen) 34.8 -2.1 32.7 30 Korea, Taiwan, etc. 25 North America 20 Europe 15 China 10 5 Japan 0 FY2023 FY
Slide 10: Factory Automation: Orders Received by Region
Factory Automation: Orders Received by Region Signs of recovery in production automation investments, particularly in Japan and other Asian countries (Billion yen) 40 +3.5 34.1 30.6 Korea, Taiwan, etc. 30 North America Europe 20 China 10 Japan 0 FY2023 FY2024 results results P. 10
Slide 11: Material Processing Segment: Net Sales and Operating Profit
Material Processing Segment: Net Sales and Operating Profit Net sales Demand for RF generators for plasma applications (Billion remained strong due to continued investment in yen) 72.6 advanced semiconductors for generative AI 70 +16.7 Welding and joining increased with the consolidation of Lorc
Slide 12: FY2025 Financial Results Forecast
FY2025 Financial Results Forecast P. 12
Slide 13: Full-Year Financial Results Forecast
Full-Year Financial Results Forecast P. 13
Slide 14: Full-year FY2025 Factors for Changes in Operating Profit (YoY)
Full-year FY2025 Factors for Changes in Operating Profit (YoY) (Billion yen) Sales YoY Increase, etc. +0.9 *1 +3.1 Advance expenses, *2 etc. Expansion of Operating -3.9 cost reduction effects Operating profit +1.7 profit 16.1 17.0 FY2024 FY2025 results forecast *1 Advanced expenses, etc.: Developmen
Slide 15: Energy Management Segment
Energy Management Segment While renewable energy-related Net sales investments remain firm, sales are expected to decline due to a reactionary (Billion yen) drop following increased renewal 120 +23.2 120.8 -1.8 119.0 EMS- investments by power companies in the previous year. 97.6 related Operatin
Slide 16: Factory Automation Segment
Factory Automation Segment (Billion yen) Net sales Underlying demand for production automation remains strong, supported by expanded subsidies in Japan. Sales and profit are expected to increase 40 due to a rebound from the previous 34.8 -2.1 32.7 +1.3 34.0 downturn. Clean 30 robots (Billion yen
Slide 17: Material Processing Segment
Material Processing Segment Semiconductor-related investments (Billion yen) Net sales remain solid, driving increased demand for RF generators for plasma applications. 80 +4.4 77.0 72.6 Sales in welding and joining are expected +16.7 to grow through synergies with Lorch. 60 55.9 RF generators (B
Slide 18: Progress on the FY2026 Medium-Term Plan Initiatives
Progress on the FY2026 Medium-Term Plan Initiatives P. 18
Slide 19: Medium-Term Plan for FY2026
Medium-Term Plan for ＦＹ2026 Our vision A company that actively contributes to solving societal issues Basic policies Expand the scope of development that contributes to solving societal issues Realize decarbonized society Eliminate labor shortages Promote digitalization P. 19
Slide 20: Growth Strategies
Growth Strategies A company that actively contributes to solving societal issues in priority areas by integrating our proprietary technologies, such as power conversion technology, high-precision and high- Our vision speed control technology, and high-frequency technology with a variety of cutting-e
Slide 21: Themes for Expanding the Scope of Development that Contributes to Solving Societal Issues
Themes for Expanding the Scope of Development that Contributes to Solving Societal Issues (Billion yen) Net sales targets Societal issues Main development themes FY FY FY FY ･･･ 2024 2025 2026 2030 Realize decarbonated Next-generation power distribution-related equipment society (DC power distributi
Slide 22: Expand the Scope of Development that Contributes to Solving Societal Issues
1 Expand the Scope of Development that Contributes to Solving Societal Issues (Billion yen) Net sales 125.0 120 100 45.0 80 70.0 Promote digitalization 25.0 60 25.0 40.0 Eliminate labor 40 15.0 shortages 30.0 28.9 12.0 9.0 8.2 7.0 55.0 20 Realize decarbonized 6.0 4.8 30.0 society 15.0 15.9 21.0 0 FY
Slide 23: Realize decarbonized society: EMS supporting renewable energy
Expand the Scope of Development that １ Contributes Realize decarbonated society to Solving Societal Issues Energy Management System (EMS) supporting renewable energy Billion yen Market size of high- capacity storage batteries [Market Environment] 600 15 (Billion yen) EMS Sales 500 Rising demand fo
Slide 24: EV Charging infrastructure equipment and systems
Expand the Scope of Development that 1 Contributes to Solving Societal Issues Realize decarbonated society EV Charging infrastructure equipment and systems [Market Environment] Plug-in charging market: Subsidies equivalent to those of the previous year have been granted for public-use infrastructu
Slide 25: Eliminate labor shortages
1 Expand the Scope of Development that Eliminate labor shortages Contributes to Solving Societal Issues [Market Environment] Despite uncertainties stemming from U.S. tariff policies, demand for production automation remains resilient due to labor shortages and rising wages. The industrial robotics
Slide 26: Market Environment for Semiconductor Manufacturing Equipment
Market Environment for Semiconductor Manufacturing Equipment RF generator systems Clean transfer robots In FY2025, investments related to generative AI The advanced packaging market—including are expected to remain strong. Further growth is technologies such as FOPLP, which enable anticipated in
Slide 27: Promote digitalization
1 Expand the Scope of Development that Promote digitalization Contributes to Solving Societal Issues Net sales: Promote digitalization [Our initiatives] (Billion 25 yen) RF generator systems 20 Deploy our proprietary high-performance power supply systems—designed to enable deep trenching and 15 mi
Slide 28: Plasma sources and Wire Arc Metal 3D Printer
1 Expand the Scope of Development that Others Contributes to Solving Societal Issues Plasma sources Wire Arc Metal 3D Printer (WAAM) We have developed and received orders for plasma The global market for additive manufacturing is expected to sources for gas decomposition, for which demand is exp
Slide 29: Innovate Distributor Sales and Expand Sales in New Areas
Strategy for expanding sales of 2 Innovate Distributor Sales and Expand Sales in New Areas standardized products Welbee The Short Arc 350 Received the “Main Award” in the 67th (2024) Top Ten New Products Awards Launched a high-end welding machine that integrates five models previously offered in
Slide 30: Expansion of Business in Europe and the U.S.
Expansion of Business 2 Innovate Distributor Sales and Expand Sales in New Areas in Europe and the U.S. (Billion yen) Net sales in Europe Business in Europe 30 In FY2024, automobile-related investments tended to be postponed due to 25 26.0 the economic downturn in Europe, but sales increased throu
Slide 31: Pursue automation and build an optimal production system
3 Pursue automation and build an optimal production system [Fully automated factory for transformer manufacturing (Juso Business Office)] Automation of core assembly processes that require a high level of skill Full automation of the pole-mounted transformer factory at the Juso Business Office in
Slide 32: Production integration of industrial oil-immersed power transformers
3 Pursue automation and build an optimal production system [Production integration of industrial oil-immersed power transformers (SHIHEN TECHNICAL)] The production of industrial oil-immersed transformers currently manufactured at DAIHEN Electric Machine Corporation (Osaka), a group subsidiary, wil
Slide 33: Medium-Term Plan Targets
Medium-Term Plan Targets (Billion yen) (Billion yen) 350.0 50.0 Net sales 300.0 45.0 300.0 40.0 250.0 250.0 230.0 35.0 30.0 200.0 226.3 Operating 36.0 25.0 profit 150.0 25.0 109.2 (12%) 20.0 (10%) Ratio of operating 15.0 100.0 17.0 profit to net sales (7%) 10.0 50.0 16.1 (7%) 5.0 6.3 0.0 0.0 2013 20
Slide 34: Capital Policy and Cash Flow
Capital Policy and Cash Flow P. 34
Slide 35: Returns to Stakeholders
Returns to Stakeholders Balanced Return of Profit in Line with Targeted “Returns” FY2023 results FY2024 results FY2025 plan FY2026 plan Net sales 188.5 billion yen 226.3 billion yen 230.0 billion yen 250.0 billion yen or more Ratio of operating profit to net sales 8.0% (15.1 billion yen) 7.1% (16.1
Slide 36: Capital Policy and Cash Flow
Capital Policy and Cash Flow Basic policy on capital policy Continue to pursue balanced return of profit to stakeholders in line with Targeted “Returns” and proactive investments ⇒Achieving both a robust equity base (target equity ratio: 50%) and improved capital efficiency (Medium-Term ROE target
Slide 37: Dividends
Dividends 200 180 168 162 165 165 160 Dividend per share (Yen) 140 82.5 82.5 84 Year-end 120 110 87 100 85 90 75 80 80 60 40 47.5 60 37.5 40 Interim 40 75 82.5 82.5 84 20 45 42.5 50 37.5 40 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 forecast * The year-end dividend for FY2024 i
Slide 38: Note on Forward-Looking Statements
Note on Forward-Looking Statements These materials contain forward-looking statements, including the outlook and expectations of the Company (including its consolidated subsidiaries). These statements are grounded in judgements and assumptions based on the information currently available to the Co