Slide 1: Financial Results Presentation Material
May 14,2025 PILLAR Corporation Financial Results Presentation Material Fiscal Year Ended March 31, 2025 Tokyo Stock Exchange Prime Market 6490
Slide 2: Contents
Contents 01 Consolidated Results for the Fiscal Year Ended March 31,2025 02 Full-year Earnings Forecast for the Fiscal Year Ending March 31,2026 03 Progress of Medium-term Management Plan 04 Action to Implement Management that is Conscious of Cost of Capital and Stock Price 05 Reference Materials 06
Slide 3: Consolidated Results for the Fiscal Year Ended March 31, 2025
Consolidated Results for the Fiscal Year Ended March 31,2025 © PILLAR Corporation 3
Slide 4: Financial Highlights
Financial Highlights Sales declined slightly compared to FY2024, however, operating income was significantly down. Year-on-Year: Sales -617 million yen（-1.1％） Operating Income -2.87 billion yen（-20.2％） Electronic Equipment Business Although an order recovery was initially expected in the second half
Slide 5: Summary of Full-year Performance for the FYE March 31, 2025
Summary of Full-year Performance for the FYE March 31,2025 Consolidated FY23 FY24 Year-on-Year (Unit： Million Yen) Results Results Change Change rate(％) Sales 58,605 57,988 -617 -1.1 Operating income 14,206 11,335 -2,871 -20.2 Operating income ratio 24.2% 19.5% -4.7P － Ordinary income 15,098 11,474
Slide 6: Sales by Segment
Sales by Segment Industrial Equipment Electronic Equipment Industrial Equipment Electronic Equipment Business Business Business Business 18,093million 40,475million 18,917million 39,034million 30.9％ 69.1％ 32.6％ 67.3％ FY23 FY24 58,605million 57,988million © PILLAR Corporation 6
Slide 7: Trends of Overseas Sales
Trends of Overseas Sales (Unit： Million Yen) Europe,etc USA Asia Overseas sales ratio +0.6P -2.0P +0.6P 31.1% +3.3P 30.5% 29.7% 29.1% 27.2% 17,067 17,225 15,165 12,416 10,198 10,869 8,226 8,225 7,410 5,722 4,917 4,594 3,873 3,739 1,793 2,022 2,276 2,482 710 1,267 FY20 FY21 FY22 FY23 FY24 © PILLAR Co
Slide 8: Trends of Company-wide Performance
Trends of Company-wide Performance Electronic Equipment Business：Both sales and operating income decreased. Industrial Equipment Business：Sales increased, but operating income decreased. Electronic Equipment Business：Although an order recovery was initially expected in the second half of the yea
Slide 9: Electronic Equipment Business Performance Trends
Electronic Equipment Business Performance Trends Sales and OP income by segment Sales/OP Income/OP Income Ratio(Unit： Million Yen) YoY decline in both sales and profits → Sales -3.6％YoY Sales Operating income Operating income ratio 40,475 →OP Income -21.7%YoY 36,819 39,034 30,410 Despite ongoing
Slide 10: Industrial Equipment Business Performance Trends
Industrial Equipment Business Performance Trends Sales result by segment YoY increase in sales and a decrease in profits Sales/OP Income/OP Income Ratio(Unit： Million Yen) →Sales +4.6％YoY Sales Operating income Operating income ratio →OP Income -14.6％YoY 18,917 TANKEN continues to perform well,
Slide 11: Analysis of Increase/Decrease in Sales for FYE March 31, 2025
Analysis of Increase/Decrease in Sales for FYE March 31,2025 (Unit： Million Yen) 70000 Electronic Equipment Business Industrial Equipment Others Business 60000 58,605 -1,441 57,988 ＋824 0 50000 40000 30000 Increase/Decrease - 617 YoY - 1.1% 20000 10000 Electronic Euipment… Others FY23 FY23 Industria
Slide 12: Analysis of Increase/Decrease in Operating Income for FYE March 31, 2025
Analysis of Increase/Decrease in Operating Income for FYE March 31,2025 The decreased sales of Electronic Equipment Businesses led to a significant drop in profits, which could not be offset by the profit gains from product price hikes. Additionally, profits were adversely impacted by increased
Slide 13: Sales by Market (Non-consolidated)
Sales by Market (Non-consolidated) Oil, steel and (Unit： Million Yen) Semiconductor and Chemical and others transportation liquid crystal Demand for spare parts in There were fewer regular both domestic and overseas Market recovery maintenance projects for oil markets remain strong, has been delayed
Slide 14: Trends of Orders Received and Order Backlog
Trends of Orders Received and Order Backlog Orders received (Unit： Million Yen) Electronic Euipment Business Industrial Equipment Business 54,227 55,189 50,548 12,231 19,686 17,486 41,995 13,375 13,519 13,481 14,813 33,061 35,502 5,098 4,446 4,797 5,344 8,276 9,073 8,683 9,469 1Q 2Q 3Q 4Q Total FY22
Slide 15: Financial Status
Financial Status The equity ratio stands at 75.3%, an increase of 4.5 points from the previous year, indicating continued strong financial soundness. (Unit： Million Yen) Total assets Net assets 83.3% 81.0% 81.9% 98,835 98,055 75.3% 70.8% 72,492 73,858 69,949 64,991 59,368 54,949 52,658 45,776 FY20
Slide 16: Cash Flow
Cash Flow (Unit： Million Yen) Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Free cash flow 14,184 6,058 5,640 7,376 5,323 5,485 (573) (2,790) (3,959) (6,807) (10,557) (16,197) FY22 FY23 FY24 © PILLAR Corporation 16
Slide 17: Full-year Earnings Forecast for the Fiscal Year Ending March 31, 2026
Full-year Earnings Forecast for the Fiscal Year Ending March 31,2026 © PILLAR Corporation 17
Slide 18: Summary of Full-Year Earnings Forecast for the FYE March 31, 2026
Summary of Full-Year Earnings Forecast for the FYE March 31,2026 Consolidated FY24 FY25 Year-on-Year (Unit： Million Yen) Results Forecast Change Change rate(％) Sales 57,988 57,500 -488 -0.8 Operating income 11,335 10,300 -1,035 -9.1 Operating income ratio 19.5% 17.9% -1.6P - Ordinary income 11,474 1
Slide 19: Trends of Company-wide Performance
Trends of Company-wide Performance Due to the delayed recovery of demand in the semiconductor market, we expect a slight year-over- year decrease in sales and profits. In preparation for the expected demand recovery in the second half of FY2025, we are working to secure adequate inventory and to
Slide 20: Electronic Equipment Business Performance Trends
Electronic Equipment Business Performance Trends Sales are projected to decrease due to the delayed recovery of demand. Consequently, profits are also expected to decrease as facility utilization rates will take time to recover. Customers' inventory adjustments are largely complete. In preparati
Slide 21: Industrial Equipment Business Performance Trends
Industrial Equipment Business Performance Trends Sales are expected to reach a record high for the fourth consecutive period. Increased sales of rotary joints, large overseas repair project acquisitions, and TANKEN's sustained strong performance will be all contributing to the company's current
Slide 22: Analysis of Increase/Decrease in Sales for FYE March 31, 2026
Analysis of Increase/Decrease in Sales for FYE March 31,2026 (Unit： Million Yen) Electronic Equipment Business Industrial Equipment Others Business 57,988 -2,240 -48 57,500 +1,800 Increase/Decrease -488 YoY -0.8% FY24 FY25 (Forecast) © PILLAR Corporation 22
Slide 23: Analysis of Increase/Decrease in Operating Income for FYE March 31, 2026
Analysis of Increase/Decrease in Operating Income for FYE March 31,2026 Costs are expected to increase due to the labor costs rise from increased hiring to support business expansion, as well as rising depreciation and other costs associated with continued growth investments. We will continue wo
Slide 24: Capital Investment and Depreciation Cost / R&D Cost
Capital Investment and Depreciation Cost／R&D Cost Capital Investment：Focusing on expanding production capacity both domestically and internationally (including molding machines and molds), as well as on establishing in-house production of recycled resins. R&D cost：Accelerating development by lev
Slide 25: Return to Shareholders
Return to Shareholders Dividend Policy： Ensuring stable and continuous dividends, with a target dividend payout ratio of 30% or more. Dividend Forecast：105 yen/share per year (consolidated dividend payout ratio 34.0%) (Unit： Yen) Current net income per share・Dividend・Payout ratio Net earnings pe
Slide 26: Progress of Medium-term Management Plan
Progress of Medium-term Management Plan © PILLAR Corporation 26
Slide 27: Four “Ones” that the name stands for
Medium-term Management Plan Basic Philosophy Four “Ones” that the name stands for Pioneering spirit, challenging spirit, and sense of purpose on Day One the first day of founding Only One Pursuit of uniqueness that can be obtained only by our group Aiming to be number one not only in business but al
Slide 28: Promoting Innovative Business/Organizational Change and Transformation
Medium-term Management Plan Basic Policies Promoting Innovative Business/Organizational Change and Transformation for Further Corporate Value Enhancement In addition to further strengthening of core business areas, further 1 Evolvement of core businesses increase economic value to offer through grow
Slide 29: Medium-term Management Plan Business Targets (Consolidated)
Medium-term Management Plan Business Targets(Consolidated) Consolidated BTvision22 One2025 One2025 (Unit： Million Yen) ①Results of ②Target of ③Change Change rete(％) Initial target of FY22 FY23 FY24 FY25 （②-①） (③÷①) FY25 Sales 48,702 58,605 57,988 57,500 8,798 18.1 66,000 Operating income 13,842 14,2
Slide 30: Trends of the semiconductor manufacturing equipment market and sales of our main business
Trends of the semiconductor manufacturing equipment market and sales of our main business From 2014 to 2023, the semiconductor manufacturing equipment market grew by 12.4% CAGR. Our Electronic Equipment Business grew outpaced the market with a CAGR of 14.7%. In 2024, orders for our main products
Slide 31: Trends of China’s semiconductor equipment market and our sales in the Chinese market
Trends of China’s semiconductor equipment market and our sales in the Chinese market Based on FY2019 as the starting point, China’s semiconductor manufacturing equipment market grew by 278.5% by 2024. In comparison, our sales in the Chinese market achieved a growth rate of 428%, significantly outp
Slide 32: Electronic Equipment Business Progress of Our Business Initiatives
Electronic Equipment Business Progress of Our Business Initiatives Achievements in FY24 Action plan in the future Continues to develop of alternative products Reinforcement of to fluororesin. Started construction to expand capacity at Start evaluation, verification, and operation the foundatio
Slide 33: Industrial Equipment Business Growth Image
Industrial Equipment Business Growth Image With mechanical seals (rotary joints) for CMP equipment as one of our main products, we will further aim to gain and expand our market share. As the shift to clean energy and "decarbonization" accelerates, we view new markets such as hydrogen, EV, and S
Slide 34: Industrial Equipment Business Progress of Our Business Initiatives
Industrial Equipment Business Progress of Our Business Initiatives Achievements in FY24 Action plan in the future Promoted cross-selling and mutual Aiming to maximize synergies with Tanken. Reinforcement of the procurement with Tanken. Striving to further reform and streamline Conducted a fu
Slide 35: Financial Strategy (Cash Allocation)
Financial Strategy（Cash Allocation） We have completed the construction of the Fukuchiyama 2nd Factory and will expand production capacity at the Fukuchiyama 1st Factory in preparation for continued growth in the Electronic Equipment Business. Furthermore, we have made active investments, such as c
Slide 36: Action to Implement Management that is Conscious of Cost of Capital and Stock Price
Action to Implement Management that is Conscious of Cost of Capital and Stock Price © PILLAR Corporation 36
Slide 37: Current Analysis of Cost of Equity
Current Analysis of Cost of Equity We acknowledge that our company's usual capital cost is approximately 10%. Currently, our capital cost has temporarily risen to 11% due to an increase in Beta value and the risk-free rate. While the ROE fell 5.2 points from 16.7% in FY2023 to 11.5% due to the p
Slide 38: Trends and Analysis of PBR, PER
Trends and Analysis of PBR,PER The PBR exceeded 1.0x in March 2021 and temporarily rose above 2.0x in March 2024. However, it has recently returned to around 1.0x, primarily due to downward earnings revisions and other related factors. Our PER has fluctuated between 10.0x and 15.0x, driven by ri
Slide 39: Aiming to maintain an ROE that exceeds the cost of equity
Aiming to maintain an ROE that exceeds the cost of equity We acknowledge that improving ROE and investment efficiency are essential to enhancing the corporate value. While continuing to grow in our current market, we are taking initiatives on exploring new markets to achieve the goals of our med
Slide 40: Examples of initiatives to generate business profits
Examples of initiatives to generate business profits With the full-scale operation of the Fukuchiyama 2nd Factory, production capacity has increased significantly. The introduction of cutting-edge automation and labor-saving equipment has further improved productivity and strengthened cost competi
Slide 41: Enhance IR/SR, Capital Strategy, Financial Strategy
Enhance IR/SR, Capital Strategy (Shareholder return plan), Financial Strategy Enhance IR/SR activities Strengthening IR/SR activities with an emphasis on constructive dialogue with investors to increase awareness of the company and expand the investor base. Consideration of Capital strategy (sha
Slide 42: Reference Materials
Reference Materials © PILLAR Corporation 42
Slide 43: Long-term Trend of Key Indexes
Long-term Trend of Key Indexes Sales/Operating Income(Unit： Million Yen) Sales Operating income 58,605 57,988 57,500 48,702 40,670 13,842 14,206 29,461 30,963 29,213 30,200 27,225 11,392 11,335 10,300 5,166 5,161 5,126 4,847 3,683 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 ROE・ROA・DOE (Unit:
Slide 44: Long-term Trend of P/L
Long-term Trend of P/L (Unit： Million Yen) FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Sales 22,960 27,225 29,461 30,963 29,213 30,200 40,670 48,702 58,605 57,988 YoY 5.9% 18.6% 8.2% 5.1% -5.7% 3.4% 34.7% 19.7% 20.3% -1.1％ Operating Income 3,469 5,166 5,161 5,126 3,683 4,847 11,392 13,842 14,2
Slide 45: Long-term Trend of B/S
Long-term Trend of B/S (Unit： Million Yen) FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Current assets 25,279 29,832 28,821 28,375 27,025 27,994 38,050 44,605 49,274 51,008 Non-current assets 16,884 19,514 22,717 24,597 26,165 26,955 26,941 27,886 49,561 47,046 Total assets 42,164 49,347 51,539
Slide 46: Long-term Trend of C/F
Long-term Trend of C/F (Unit： Million Yen) FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Cash flow from 3,074 3,220 3,752 5,035 4,064 5,676 11,950 6,058 5,640 14,184 operating activities Cash flow from -3,230 -2,363 -3,244 -3,902 -2,950 -3,705 -1,551 -573 -16,197 -6,807 investing activities Cash
Slide 47: Corporate Profile
Corporate Profile © PILLAR Corporation 47
Slide 48: Company Information
Company Information Origin of our Company Name This naming originated from our first product developed in 1924, the “Patented Pillar Packing No. 1”, which was shaped like a pillar. Purpose Established 1924 Creating a future that Representative Yoshinobu Iwanami supports society Minimizing energy con
Slide 49: Electronic Equipment Business Main Products and Delivery Destinations
Electronic Equipment Business Main Products and Delivery Destinations Our product groups that take advantage of fluororesin’s properties such as “chemical resistance”, “heat resistance” and “low friction” Fluororesin fittings and tubes are unaffected by various chemical liquids. Therefore, they are
Slide 50: Industrial Equipment Business Main Products and Delivery Destinations
Industrial Equipment Business Main Products and Delivery Destinations Mechanical Seals, Gland Packings These devices prevent leak of fluid under extreme conditions of high temperature and high pressure, and are used in pumps and valves in oil refining and chemical plants. Gaskets These parts prevent
Slide 51: Our Advantages① Over 100 years of material development capabilities
Our Advantages① Over 100 years of material development capabilities Over the past 100 years, we have been conducting independent research and development across various materials, including those used for gas and liquid applications, at both high temperatures and low temperatures. With our deep
Slide 52: Our Advantages② Material×Technology×Abundant Fluid Solutions
Our Advantages② Material×Technology×Abundant Fluid Solutions In the Electronic equipment business, leveraging our deep understanding of material properties, we are able to utilize injection molding technology for shapes that commonly requiring cutting, as our technology continues to advance. In
Slide 53: Sales by Segment and Trend in the Composition Ratio
Sales by Segment and Trend in the Composition Ratio The sales composition of the electronic equipment business has increased significantly, from 54.5% in FY2014 to 67.3% in FY2024, due to continuous growth alongside the markets while maintaining a high market share. The sales of the industrial e
Slide 54: Clip of our Company and Products (Contact)
•This material includes descriptions about forecasts, plans and outlooks of future business performance. These descriptions do not guarantee the future business performance and contain elements of risk and uncertainty. •Please note that the future business performance may largely differ from the con