Daihen Corporation · TSE:6622
Daihen — Q2 FY2025 Earnings Presentation
39 slides from Daihen's earnings presentation, Dec 5, 2025
Slide 1: Financial Results for the Second Quarter of FY2025
Financial Results for the Second Quarter of FY2025 (Six Months Ended September 30, 2025) DAIHEN Corporation December 5, 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 Japane
Slide 2: Agenda
Agenda 1. FY2025 2Q Results (Six Months Ended September 30, 2025) 2. FY2025 Full-year Financial Results Forecast 3. Progress on the FY2026 Medium-Term Plan Initiatives 4. Capital Policy and Cash Flow P. 2
Slide 3: FY2025 2Q Results (Six Months Ended September 30, 2025)
FY2025 2Q Results (Six Months Ended September 30, 2025) P. 3
Slide 4: FY2025 2Q Results (Six Months Ended September 30, 2025)
FY2025 2Q Results (Six Months Ended September 30, 2025) (Billion yen) FY2024 FY2025 FY2025 YoY 2Q results 2Q results 2Q forecast (1) (2) (2)-(1) Change (3) Change Net sales 96.1 105.2 +9.1 +9.5% 100.0 +5.3% 1 Energy Management 50.1 53.9 +3.8 +7.7% 50.0 +7.9% 2 Factory Automation 14.2 15.2 +1.0 +7.4%
Slide 5: FY2025 2Q Factors for Changes in Operating Profit (YoY)
FY2025 2Q Factors for Changes in Operating Profit (YoY) (Billion yen) Sales YoY increase, etc. +1.0 +1.8 *1 Advanced *2 Expansion of expenses cost reduction Operating -0.7 effects Operating +1.5 profit profit 5.1 6.9 FY2024 FY2025 2Q results 2Q results *1 Advanced expenses: increased development fun
Slide 6: Energy Management Segment: Net Sales and Operating Profit
Energy Management Segment: Net Sales and Operating Profit (Billion yen) Net sales 60.0 53.9 EMS- Sales and profit increased due to 50.1 +3.8 related increased investments in renewable energy and renewal of power receiving 50.0 and distribution systems. Overseas 40.0 Domestic general (Billion yen)
Slide 7: Energy Management Segment: Orders Received
Energy Management Segment: Orders Received (Billion yen) Orders received 80.0 73.2 EMS- Orders for Domestic energy increased +12.8 related due to heightened demand for large 70.0 60.4 transformers used in substations. Overseas Orders for Domestic general increased 60.0 due to renewable energy-re
Slide 8: Factory Automation Segment: Net Sales and Operating Profit
Factory Automation Segment: Net Sales and Operating Profit Sales and profit increased, reflecting (Billion yen) Net sales the results of efforts to develop new 18.0 customers in the U.S. and China. +1.0 15.2 Profit increased, driven by higher net 15.0 14.2 sales and the effects of cost reduction
Slide 9: Factory Automation: Net Sales by Region
Factory Automation: Net Sales by Region (Billion yen) 16.0 +1.0 15.2 14.2 While investments remained Korea, Taiwan, etc. suppressed in Japan and Europe, sales in other regions 12.0 increased. North America Europe 8.0 China 4.0 Japan 0.0 FY2024 FY2025 2Q results 2Q results P. 9
Slide 10: Material Processing Segment: Net Sales and Operating Profit
Material Processing Segment: Net Sales and Operating Profit Net sales Demand for RF generators for plasma (Billion yen) 36.0 applications remained high due to 35.0 +4.3 continued investment in advanced 31.7 semiconductors for generative AI. Profit increased, driven by higher net 30.0 sales. (Bil
Slide 11: FY2025 Full-year Financial Results Forecast
FY2025 Full-year Financial Results Forecast P. 11
Slide 12: Full-year Financial Results Forecast
Full-year Financial Results Forecast It is anticipated that uncertainties surrounding semiconductor-related investments will ease, while investments related to decarbonization and other areas are expected to remain robust. Reflecting the stronger-than-expected performance in the first half, the fu
Slide 13: 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. +2.4 *1 +2.9 Advanced expenses, *2 etc. Expansion of Operating -3.0 cost reduction effects Operating profit +2.5 profit 16.1 18.5 FY2024 FY2025 results forecast *1 Advanced expenses, etc.: developme
Slide 14: Energy Management Segment
Energy Management Segment Despite a reactionary drop following Net sales increased renewal investments by power companies in the previous (Billion yen) +6.2 127.0 +23.2 120.8 EMS- year, sales and profit are expected to 120.0 related rise due to robust renewable energy- 97.6 related investments and
Slide 15: Factory Automation Segment
Factory Automation Segment Despite automobile-related Net sales investments in Japan tend to be (Billion yen) postponed, sales and profit are expected to increase, driven by 40.0 efforts to acquire new customers in 34.8 -2.1 +0.3 33.0 the U.S. and Europe, as well as the 32.7 effects of cost reduct
Slide 16: Material Processing Segment
Material Processing Segment Demand for RF generators for plasma Net sales applications is expected to increase due to (Billion yen) growing semiconductor-related investments. 80.0 72.6 +2.4 75.0 Sales in welding and joining are expected +16.7 to grow through synergies with Lorch. 60.0 55.9 RF ge
Slide 17: Progress on the FY2026 Medium-Term Plan Initiatives
Progress on the FY2026 Medium-Term Plan Initiatives P. 17
Slide 18: Medium-Term Plan for FY2026
Medium-Term Plan for ＦＹ2026 A company that actively contributes to solving social challenges 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
Slide 19: Medium-Term Plan Targets
Medium-Term Plan Targets (Billion yen) (Billion yen) 350.0 50.0 Net sales 300.0 300.0 45.0 40.0 250.0 235.0 250.0 35.0 Operating profit 36.0 30.0 200.0 226.3 25.0 (12%) Ratio of operating 25.0 150.0 (10%) profit to net sales 109.2 18.5 20.0 (8％) 15.0 100.0 16.1 10.0 (7％) 50.0 5.0 6.3 0.0 0.0 2013 20
Slide 20: Medium-Term Plan for FY2026 Key Strategic Priorities
Medium-Term Plan for ＦＹ2026 Key Strategic Priorities Our vision A company that actively contributes to solving social challenges Basic policies Expand the scope of development that contributes to solving social challenges Realize decarbonized society Eliminate labor shortages Promote digitalization
Slide 21: Themes for Expanding the Scope of Development that Contributes to Solving Social Challenges
Themes for Expanding the Scope of Development that Contributes to Solving Social Challenges (Billion yen) Net sales targets Social challenges Main development themes FY2024 FY2025 FY2026 ･･･ FY2030 Realize decarbonated Next-generation power distribution-related equipment society (DC power distributi
Slide 22: Expand the Scope of Development that Contributes to Solving Social Challenges
Expand the Scope of Development that Contributes to Solving Social Challenges (Billion yen) Net sales 125.0 120.0 100.0 45.0 80.0 70.0 Promote digitalization 25.0 60.0 25.0 42.0 Eliminate labor 40.0 15.0 shortages 28.9 12.0 8.2 7.0 Realize decarbonized 55.0 20.0 4.8 society 23.0 30.0 15.9 0.0 FY2024
Slide 23: Realize decarbonized society: grid storage batteries
1 Expand the Scope of Development that Contributes to Solving Social Challenges Realize decarbonated society [Market Environment] Growing demand for grid storage batteries that can be deployed EMS Sales (Billion yen) early in the supply-demand balancing market. 15.0 Rising demand for storage bat
Slide 24: Storage Battery Package for Disaster Prevention
1 Expand the Scope of Development that Contributes to Solving Social Challenges Realize decarbonated society Development and Start of Orders for Storage Battery Package for Disaster Prevention [Background of Development] (December 2025) The majority of emergency generators (approx. 200,000 units n
Slide 25: Increased Demand for Power Receiving and Distribution Systems
Increased Demand for Power Receiving and Distribution Systems (Energy Management) [Market Environment] Increase in maximum power demand due to new and expanded data centers and semiconductor plants* The expansion of power-receiving facilities and substations is anticipated due to new 7.15 million kw
Slide 26: Eliminate labor shortages
1 Expand the Scope of Development that Contributes to Solving Social Challenges Eliminate labor shortages [Market Environment] Net sales: Eliminate labor shortages (Billion yen) Demand for production automation remains resilient due to labor 15.0 shortages and rising wages. The industrial robotics
Slide 27: Autonomous mobile robot
Autonomous mobile robot Eliminate labor shortages P. 27
Slide 28: Market Environment for Semiconductor Manufacturing Equipment
Market Environment for Semiconductor Manufacturing Equipment RF generator systems Clean transfer robots In FY2025, investments will be led by The advanced packaging market—including advanced logic and memory, mainly for technologies such as FOPLP, which enable high- generative AI. Further growth
Slide 29: Promote digitalization
1 Expand the Scope of Development that Contributes to Solving Social Challenges Promote digitalization [Our initiatives] Net sales: Promote digitalization (Billion yen) RF generator systems 25.0 Deploy our proprietary high-performance power supply systems—designed to 20.0 enable deep trenching and
Slide 30: 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” Series, the definitive welding machine integrating features of various equipment types [First Series] (Launched in FY2024) [Second Series] (To be launched in Januar
Slide 31: 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. Business in Europe (Billion yen) Net sales in Europe 30.0 Conducting sales activities to meet user needs by leveraging strengths of 25.0 23.0 six group companies for mutual product supply to boo
Slide 32: Pursue Automation and Build an Optimal Production System
3 Pursue Automation and Build an Optimal Production System [Factory where robots manufacture robots [Fully automated factory for transformer manufacturing (Rokko Business Office)] (Juso Business Office)] Renewal of the pole-mounted transformer factory commencing in January 2026 Full automation i
Slide 33: Initiatives to Reduce CO2 Emissions
Initiatives to Reduce CO2 Emissions [CO2 emissions (Scope 1 + 2)] [CO2 emissions (Scope 3)] Target: 46% reduction vs. FY2013 (FY2027 goal) Target: 25% reduction vs. FY2020 (FY2030 goal) Achieved 23.7% reduction by installing solar power Gradually introducing power sharing not only within generat
Slide 34: Summary of FY2026 Financial Plan, Market Environment, and Our Initiatives
Summary of FY2026 Financial Plan, Market Environment, and Our Initiatives (Billion yen) FY2023 FY2024 FY2025 Changes FY2026 results results forecast from FY2025 plan Net sales 188.5 226.3 235.0 +15.0 250.0 Ratio of operating profit to 8.0% 7.1% 7.9% +2.1P 10% or more net sales ROE 13.3% 8.8% 9.8% +2
Slide 35: Capital Policy and Cash Flow
Capital Policy and Cash Flow P. 35
Slide 36: Returns to Stakeholders
Returns to Stakeholders Balanced Return of Profit in Line with Targeted “Returns” FY2023 results FY2024 results FY2025 forecast FY2026 plan Net sales 188.5 billion yen 226.3 billion yen 235.0 billion yen 250.0 billion yen or more Ratio of operating profit to net sales 8.0% (15.1 billion yen) 7.1% (1
Slide 37: 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 38: Dividends
Dividends 200 In accordance with the revised financial 180 results forecast, the annual dividend 176 has been increased by 8 yen compared 162 165 165 160 to the initial forecast for FY2025. (168 yen 176 yen) Dividend per share (Yen) 140 92 Year-end 82.5 82.5 120 110 87 100 85 90 75 80 80 60 40 4
Slide 39: 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