Slide 1: ESPEC CORP. Results Briefing FY2024
Securities ID code: 6859 ESPEC CORP. Results Briefing FY2024 (Fiscal Year Ended March 31, 2025) May 26, 2025 Representative Director and President Satoshi Arata
Slide 2: Medium-Term Management Plan PROGRESSIVE PLUS 2027
Medium-Term Management Plan PROGRESSIVE PLUS 2027 Implementation period: FY2025–2027 22
Slide 3: Impact of and Response to U.S. Reciprocal Tariff Policies
Impact of and Response to U.S. Reciprocal Tariff Policies • The Company has a subsidiary in the U.S., with over 80% of production conducted locally. Exports from Japan account for only a few percent of consolidated net sales, and there is little trade between the U.S. and China. Therefore, the direc
Slide 4: PROGRESSIVE PLAN 2025 Early Achievement
PROGRESSIVE PLAN 2025 Early Achievement Implemented a Medium-Term Management Plan divided into four-year stages (Stage I to III) in working toward the realization of ESPEC Vision 2025. The Stage III plan, “PROGRESSIVE PLAN 2025,” achieved its targets in FY2024, one year ahead of schedule. Stage III
Slide 5: PROGRESSIVE PLAN 2025 Targets and Results
PROGRESSIVE PLAN 2025 Targets and Results Stage Ⅰ Stage II Stage III PROGRESSIVE PLAN 2017 PROGRESSIVE PLAN 2021 PROGRESSIVE PLAN 2025 (Millions of yen) Net sales 売上高 65,000 営業利益 Operating profit 67,288 62,126 営業利益率 Profit ratio 52,892 50,580 (47,060) 44,069 42,443 41,852 39,035 39,507 38,668 33,661
Slide 6: PROGRESSIVE PLAN 2025 Results and Challenges
PROGRESSIVE PLAN 2025 Results and Challenges Strategy Result Summary/Management Challenges • Orders received for development and production applications in the EV and battery sectors Equipment Business • Improved domestic competitiveness of customized products • Expand new products for advanced tech
Slide 7: Recognition of the Operating Environment Toward 2027 (SWOT Analysis)
Recognition of the Operating Environment Toward 2027 (SWOT Analysis) Plus Factors Minus Factors [Strengths] [Weaknesses] Internal Environment • Top shares (Global: 30%, Japan: 60% or more) • Decline in operational efficiency due to rapid • Brand strength in the environmental testing order expansion
Slide 8: PROGRESSIVE PLUS 2027 Basic Policy and Targets
PROGRESSIVE PLUS 2027 Basic Policy and Targets Establishing a lean, sustainable, and highly profitable earnings model Aiming to continuously increase our value as a corporate group by becoming a “lean enterprise,” which we will achieve through quality improvements and profit growth. ■ Target markets
Slide 9: PROGRESSIVE PLUS 2027 Three Strategies
PROGRESSIVE PLUS 2027 Three Strategies To enhance corporate value, the Company will execute business strategies, financial capital strategies, and non-financial strategies, along with proactive growth investments and shareholder returns. Increase Corporate Value 1. Business 2. Financial Capital 3. N
Slide 10: PROGRESSIVE PLUS 2027 Positioning
PROGRESSIVE PLUS 2027 Positioning A three-year period looking ahead to the next decade, aiming for an operating profit ratio of 15% Laying the foundation for further growth Net sales (Millions of yen) 売上高 Three years of profit growth ESPEC Vision Operating profit 営業利益 Profit ratio 営業利益率 68,000 70,00
Slide 11: Target Markets
Target Markets • Expected slowdown in investments in EVs and batteries • AI semiconductors, autonomous driving, and satellite communications, where testing demand is expected to increase with the practical application of advanced technologies, will be the target markets ■ Targeted advanced technolog
Slide 12: Testing Demand in the AI Semiconductor and Server Market
Testing Demand in the AI Semiconductor and Server Market (10 billion dollars) As generative AI spreads across society, development is 140 130.4 accelerating in advanced technology fields such as 120 107.9 semiconductors, data centers, storage, electronic 100 89.7 components, and electronic materials
Slide 13: Testing Demand in Autonomous Driving Market
Testing Demand in Autonomous Driving Market Active development by automotive manufacturers aiming for 1.1 (Billions of units) vehicle electrification and intelligence, including software- LiDAR defined vehicles (SDVs*). Sensing cameras In sensors used in autonomous driving, such as integrated Surrou
Slide 14: Testing Demand in the Satellite Communications Market
Testing Demand in the Satellite Communications Market （100 million yen） Targeting the commercial satellite communications technologies under development by private companies in the U.S. and Japan. Use and adaptation of consumer-grade components is expected to increase since satellite communications
Slide 15: Image of Achieving the FY2027 Operating Profit Target
Image of Achieving the FY2027 Operating Profit Target •Offset the slowdown in investment for EVs and batteries by capturing demand in the fields of AI semiconductors, autonomous driving, and satellite communications •Improve gross profit margin through enhanced product value and more efficient manuf
Slide 16: Medium-Term Management Targets by Business Segment
Medium-Term Management Targets by Business Segment (Millions of yen) Business Segment FY2024 Results FY2027 Targets Growth Rate Equipment Business 57,507 58,550 +1.8% Service Business 8,425 10,200 +21.1% Net sales Other Business 1,758 1,800 +2.4% Elimination -403 -550 - Total 67,288 70,000 +4.0% 6,6
Slide 17: 1-1. Equipment Business Strategy
1-1. Equipment Business Strategy Medium-Term Management Targets Net sales (Millions of yen) 売上高 Operating profit 営業利益 •In environmental test chambers, compensate for 営業利益率 Profit ratio the slowdown in investment related to EVs and 58,550 +2% batteries by capturing testing demand in target 57,507 mar
Slide 18: 1-2. Global Strategy
1-2. Global Strategy Leverage the Group’s overall strengths to establish competitive advantages in each region ■ Target Markets by Region • Semiconductors • Automobiles • Communications • Semiconductors • Communications • AI semiconductors Europe China South Korea U.S. Taiwan Japan India ASEAN • Aut
Slide 19: 1-3. Monozukuri (manufacturing) Strategy
1-3. Monozukuri (manufacturing) Strategy Proactively driving labor-saving and automation at the Fukuchiyama Plant (Kyoto Pref.) by leveraging AI and IoT to enhance manufacturing efficiency • Optimization of the value chain by connecting all processes through digital technologies • Shortening product
Slide 20: 1-4. Service Business Strategy
1-4. Service Business Strategy Medium-Term Management Targets Net sales (Millions of yen) 売上高 • In laboratory testing services, expand sales 営業利益 Operating profit Profit ratio 10,200 centering on the “Aichi Next-Generation 営業利益率 +21% Mobility Test Lab,” opened in February 2025 8,425 14.7% +5.3 pt •
Slide 21: 1-5. New Business Strategy
1-5. New Business Strategy Creation of new businesses to serve as future revenue pillars ■ Expansion of thermal solution services (commissioned thermal measurement and CAE analysis services) Contribute to shortening customers’ development timelines Support improved accuracy in thermal design and the
Slide 22: 2-1. Financial Capital Strategy
2-1. Financial Capital Strategy Cash Allocation Policy Proactively allocate cash generated over three years to growth investments and shareholder returns ■ Implement shareholder returns with a total return ratio of 50% (cumulative over 3 years) or more through dividends and share purchases by the Co
Slide 23: 2-2. Investment Plans
2-2. Investment Plans FY2022–2024 (3 years) FY2025–2027 (3 years) Growth Rate Results Plans Over 3 Years Regular Investment ¥3.5 billion ¥2.5 billion -29% Strategic Investment ¥6.0 billion ¥7.0 billion +17% Total Growth Investment ¥9.5 billion ¥9.5 billion - R&D Expenses ¥3.6 billion ¥4.8 billion +3
Slide 24: 2-3. Shareholder Return Policy
2-3. Shareholder Return Policy Disclosed on May 15, 2025 With the formulation of the Medium-Term Management Plan PROGRESSIVE PLUS 2027, the basic policy on dividends was revised and the name of the policy was changed to clarify the policy of strengthening shareholder returns, not only through divide
Slide 25: 2-4. Management Conscious of Cost of Capital and Share Price
2-4. Management Conscious of Cost of Capital and Share Price Disclosed on May 15, 2025 Under the Medium-Term Management Plan PROGRESSIVE PLUS 2027 ROE target is raised from 10% to 12% or higher, and initiatives are strengthened Policies • Aim to achieve (net sales of ¥70.0 billion, operating profit
Slide 26: 3. Non-financial Strategies (ESG)
3. Non-financial Strategies (ESG) Main Initiatives Medium-Term Management Plan Targets Environment • Promote global warming prevention and biodiversity conservation under the 8th Medium-term Plan on the • Greenhouse gas emissions (compared to FY2019) Environment (FY2022–2025) Scope 1+2: 55% reductio
Slide 27: Forward-looking statements and inquiries
These materials contain forward-looking statements, including the Company’s present plans and forecasts of performance, that reflect the Company’s plans and forecasts based on the information presently available. These forward-looking statements are not guarantees of future performance, and plans, f
Slide 28: Quality is more than a word
Quality is more than a word ESOEC ESPEC CORP.