Financial Results for the FY2025 2Q
* This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Inaba Denki Sangyo Co., Ltd. Tokyo Stock Exchange Prime: 9934
This document is a translation of the original Japanese document and is only for
reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
I'm Tamagaki. I was appointed as the President and Representative Director in June. Thank you for attending this presentation.
I would like to explain Inaba Denki Sangyo Co., Ltd.'s "Financial Results for the Second quarter of the Fiscal Year Ending March 31, 2026".
Contents | ||
▌ Financial Results for the FY2025 2Q ▌ Outlook for Each Segment Based on the Medium-Term Management Plan ▌ Earnings Forecast for the FY2025 ▌ Shareholder Returns *Forward-looking statements such as forecasts, plans and targets are based on information currently available to the Group and on certain assumptions that the Group deems reasonable. Actual results may differ significantly from these forecasts due to various factors. Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 2 | ||
Today, I will explain in the order shown on the slide.
First, I would like to give you an overview of our financial results for the second quarter of the fiscal year ending March 31, 2026, followed by the outlook for each segment based on the Medium-Term Management Plan and earnings forecasts for the fiscal year ending March 31, 2026.
After that, I will explain about share split and the shareholder return initiatives, such as the acquisition of own shares, announced on October 31, 2025.
Consolidated Statement of Income | ||
(Millions of yen) Gross profit 31,335 17.4% 34,638 18.0% 3,303 10.5% SG&A 19,509 20,585 1,076 5.5% Operating profit 11,826 6.6% 14,053 7.3% 2,227 18.8% Net non-operating income 591 1,148 556 94.1% and expenses Ordinary profit 12,417 6.9% 15,201 7.9% 2,784 22.4% Net extraordinary income (174) 1 175 - and losses *Unless otherwise stated, figures in this document are rounded down to the nearest unit, and percentages and percentage changes are rounded off. If the YoY change % exceeds 1,000%, or if one or both of the comparison targets are negative, this is indicated with "-". Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 3 | ||
FY24 2Q | % of Net sales | FY25 2Q | % of Net sales | YoY change amount | YoY change % | |
Net sales | 179,729 | 100% | 192,246 | 100% | 12,517 | 7.0% |
Profit before income taxes | 12,243 6.8% 15,202 7.9% 2,959 24.2% | |||||
Profit attributable to owners of parent | 8,438 | 4.7% | 10,622 | 5.5% | 2,184 | 25.9% |
The slide shows the consolidated statement of income.
Net sales increased by 7.0% year on year to ¥ 192.246 billion.
Gross profit increased by 10.5% to ¥ 34.638 billion, and the gross profit rate rose by 0.6 percentage points to 18.0%.
Although SG&A expenses increased by 5.5% due to an increase in repair expenses associated with office maintenance and IT expenses, operating profit increased by 18.8% to ¥14.053 billion.
Ordinary profit increased by 22.4% to ¥15.201 billion,
and Profit attributable to owners of parent increased by 25.9% to ¥10.622 billion, setting a record for second quarter financial results.
Business Results by Segment | ||
Net sales (100 millions of yen) Segment profit (100 millions of yen) 429 430 356 187 90 363 180 82 333 193 161 184 70 76 7 68 8 1,187 1,306 832 892 1,038 10 69 6 8 41 56 24 26 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 4 | ||
This slide shows the performance trends of each segment.
There are three main segments: Electrical Equipment & Materials and Industrial Automation in the Trading Companies division, and Proprietary Products in the Manufacturing division.
As you can see, our trading company division account for a large portion of our sales while our manufacturing division "Proprietary Products" segment is the main pillar of our profit structure.
Next, I will explain the performance of each segment.
Electrical Equipment & Materials | ||
Net sales (100 millions of yen) Net sales +10.0％ YoY Net sales increased as selling prices continued to increase in 1,306 general due to soaring distribution costs and raw materials prices. 1,187 The large-scale projects such as redevelopment projects in 1,038 metropolitan areas, factories, and data centers were delivered steadily. By product category, sales of power distribution equipment and air-conditioning equipment increased, and sales of electric wire cables grew in 2Q. Reference index YoY FY24 2Q FY25 2Q Floor area of non-residential private buildings (9.6%) (4.0%) Number of FY23 FY24 FY25 new housing starts (0.8%) (17.4%) 2Q 2Q 2Q Source: Ministry of Land, Infrastructure, Transport and Tourism Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 5 | ||
First, I would like to explain the performance of Electrical Equipment & Materials.
Electrical Equipment & Materials sells equipment such as electric wire cables, lighting, and power distribution equipment to office buildings, commercial facilities, logistics center, factories, and residences.
Net sales increased by 10.0% year on year to ¥ 130.6 billion.
Despite ongoing increases in sales prices for electrical construction materials in general due to soaring distribution costs and raw materials prices, deliveries for large-scale projects such as the redevelopment projects in metropolitan areas, factories and data centers progressed well.
By product category, sales of power distribution equipment and air-conditioning equipment increased. Meanwhile, sales of electric wire cables also grew in the second quarter.
Electrical Equipment & Materials - Electric Wire | ||
❚ Copper prices ❚ Copper wire shipment volume （10,000 yen / ton） (construction and wire sales) （1,000 tons） （2.4％） （5.0％） YoY YoY 145 141 134 Previous year Current year first half first half average average 149.7 146.1 FY23 FY24 FY25 （September FY23 FY24 FY25 2Q 2Q 2Q estimate） Source: JX Advanced Metals Corporation Source: The Japanese Electric Wire & Cable Makers' Association Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 6 | ||
This slide shows the copper market situation for wire.
The line graph on the left shows the domestic price of copper.
The bar graph on the right shows the trend of copper wire shipment volume in the construction and wire sales industry.
Copper prices remained at a high level, despite an average year-on-year decrease of 2.4% in the first six months.
Although shipments of wire for the construction and wire sales industry are expected to decrease year on year, our sales of electric wire cables increased by approximately 4% year on year and sales volume also increased due to the optimization of selling prices, inventory measures, and sales efforts.
Industrial Automation | ||
Net sales (100 millions of yen) Net sales +3.9％ YoY Although sales of electronic components were sluggish as 193 187 the impact of inventory adjustments related to 180 semiconductors continued in some areas, capital investment in the manufacturing industry showed signs of recovery driven by demand for labor-saving and automation due to labor shortages, leading to increased sales of robots and control equipment. Reference index YoY FY24 2Q FY25 2Q Electrical control equipment domestic shipment value (22.4%) +5.7% FY24 FY25 August August Electronic components and cumulative total cumulative total devices production results +11.8% +1.4% FY23 FY24 FY25 2Q 2Q 2Q Source: Nippon Electric Control Equipment Industries Association Japan Electronics and Information Technology Industries Association Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 7 | ||
Next, I would like to explain the performance of Industrial Automation.
Industrial Automation, which handles control equipment and electronic components, is affected by trends in capital investments in Japan.
Net sales increased by 3.9% year on year to ¥18.7 billion.
Although sales of electronic components were sluggish as the impact of inventory
adjustments related to semiconductors continued in some areas, capital investment in the manufacturing industry showed signs of recovery driven by demand for labor-saving and automation due to labor shortages, leading to increased sales of robots and control
equipment.
Proprietary Products | ||||
Net sales (0.2％) YoY Air Conditioning Sector
430 429 Reference index YoY 356 44 47 FY24 2Q FY25 2Q Room air conditioning systems 45 49 53 domestic shipments +9.0% +4.0% 44 Source: The Japan Refrigeration and Air Conditioning Industry Association Industrial Sector 335 328 267 Net sales +7.9％ YoY Net sales increased due to an increase in overseas sales Housing Sector FY23 FY24 FY25 2Q 2Q 2Q Net sales +5.5% YoY Increased sales of information wiring systems and other proprietary products. Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 8 | ||||
Next, I would like to explain the performance of Proprietary Products. Proprietary Products consists of 3 brands.
"INABA DENKO" in the air conditioning sector, "Abaniact" in the housing sector,
and "PATLITE" in the industrial sector.
Net sales decreased by 0.2% year on year to ¥ 42.9 billion.
By sector, sales in the air conditioning sector decreased by 2.1% year on year to ¥ 32.8 billion. Although sales of mainstay products such as insulated copper tube and the "SLIMDUCT Series", decorative covers for air conditioning piping, remained strong due to steady shipments of room air conditioning systems, net sales decreased in response to a last-minute surge in demand before price revisions in the same period of the previous fiscal year and higher sales in northern Japan, where demand for air conditioning has been increasing.
Net sales in the industrial sector increased by 7.9% to ¥5.3 billion due to an increase in overseas sales at the consolidated subsidiary PATLITE CORPORATION.
Net sales in the housing sector increased by 5.5% year on year to ¥4.7 billion due to an increase in sales of information wiring systems and other proprietary products.
We are working to further strengthen our development functions and develop new products that will become a new pillar of earnings to change our sales currently focused on the air conditioning sector.
FY24 2Q | FY25 2Q | YoY change amount | YoY change % | |
Dividend income | 514 | 919 | 405 | 78.8% |
Interest income | 57 | 170 | 112 | 195.4% |
Other | 194 | 151 | (42) | (21.9%) |
Non-operating income (A) | 766 | 1,241 | 475 | 62.0% |
Interest expenses | 10 11 | 0 | 6.5% | |
Foreign exchange losses | 110 | 5 | (104) | (94.8%) |
Other | 53 | 76 | 22 | 41.8% |
Non-operating expenses (B) | 174 | 93 | (81) | (46.6%) |
Net non-operating income and expenses (A - B) | 591 | 1,148 | 556 | 94.1% |
9
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(Millions of yen)
Non-operating Income and Expenses
Next, I would like to explain our non-operating income and expenses.
Non-operating income increased due to an increase in dividend income and interest income. In addition, non-operating expenses decreased due to a decrease in foreign exchange losses.
As a result, we recorded net non-operating income of ¥1,148 million, an increase of ¥556 million from the same period of the previous fiscal year.
FY24 2Q | FY25 2Q | YoY change amount | YoY change % | |
Gain on sale of non-current assets | 1 | 3 | 2 161.7% | |
Extraordinary income (A) | 1 | 3 | 2 | 161.7% |
Loss on retirement of non-current assets | 1 | 2 | 0 | 21.7% |
Loss on sale of non-current assets | - | 0 | 0 | - |
Other | 173 | - | (173) | (100.0%) |
Extraordinary losses (B) | 175 | 2 | (173) | (98.6%) |
Net extraordinary income and losses (A - B) | (174) | 1 | 175 | - |
10
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(Millions of yen)
Extraordinary Income and Losses
In extraordinary income and losses, extraordinary losses decreased by ¥173 million due to an impairment loss on assets scheduled for sale in Proprietary Products in the same period of the previous fiscal year.
As a result, the gain posted for net extraordinary income and losses amounted to ¥1 million.
Profit Before Income Taxes | ||||
Change factors +8 +12 (0) Industrial Proprietary Electrical Automation Products Equipment & Materials 122 Segment profit FY24 2Q Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. | (100 millions of yen) | |||
+9 | ||||
Corporate | ||||
Expenses | ||||
152 | ||||
FY25 | ||||
2Q | ||||
11 | ||||
+15
▲2
＋11
+10
We use "profit before income taxes" as a profit indicator for management accounting purposes.
There was an increase in profit of ¥2.959 billion and the factors behind this change are shown in a graph.
Profits increased in Electrical Equipment & Materials, where sales were strong, and in Proprietary Products, where profit margins increased as a result of efforts to pass on higher prices.
Corporate expenses decreased due to an increase in dividend income and other factors.
FY24 | Composition ratio | FY25 2Q | Composition ratio | YoY change amount | YoY change % | |
Current assets | 215,720 | 77% | 203,569 | 74% | (12,151) | (5.6%) |
Non-current assets | 63,262 | 23% | 71,822 | 26% | 8,560 | 13.5% |
Total assets | 278,983 | 275,391 | (3,591) | (1.3%) | ||
Current liabilities | 100,190 | 36% | 81,653 | 30% | (18,536) | (18.5%) |
Non-current liabilities | 5,769 | 2% | 9,049 | 3% | 3,279 | 56.8% |
Total liabilities | 105,959 | 38% | 90,703 | 33% | (15,256) | (14.4%) |
Total net assets | 173,023 | 62% | 184,688 | 67% | 11,665 | 6.7% |
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(Millions of yen)
* "Accounting Standard for Current Income Taxes" have been applied from FY24. This standard have been applied retrospectively to FY23.
Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved.
Consolidated Balance Sheet
On this slide is the consolidated balance sheet.
The decrease in assets and liabilities was mainly due to a decrease in trade receivables and trade payables, which increased at the end of the previous fiscal year.
The equity ratio rose by 5.1 percentage points to 66.9%.
FY24 2Q | FY25 2Q | YoY change amount | |
Cash flows from operating activities 6,699 | 9,076 | 2,377 | |
Cash flows from investing activities (5,899) | (3,320) | 2,579 | |
Cash flows from financing activities (3,041) | (3,614) | (573) | |
Effect of exchange rate changes on cash and cash equivalents | 22 | (35) | (58) |
Net increase (decrease) in cash and cash equivalents | (2,218) | 2,107 | 4,325 |
Cash and cash equivalents at the end of the quarter | 59,277 | 68,169 | 8,891 |
13
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(Millions of yen)
Consolidated Statement of Cash Flows
Next, I would like to explain about our "Consolidated Statement of Cash Flows." Cash flows from operating activities recorded a cash inflow of ¥9.0 billion.
This was mainly due to a recording of profit before income taxes, and a decrease in trade receivables resulting from the collection of accounts receivable recorded at the end of the previous fiscal year.
Cash flows from investing activities recorded a cash outflow of ¥3.3 billion.
This was mainly due to the net of proceeds from the withdrawal of time deposits and payments into time deposits and the capital increase of subsidiary.
Cash flows from financing activities recorded a cash outflow of ¥3.6 billion. This was mainly due to the payment of dividends.
As a result, cash and cash equivalents at the end of the quarter increased by ¥8.8 billion year on year to ¥68.1 billion.
Medium-Term Management Plan | |||||||||||
3,920 267 FY25 Forecast |
4,100 278 FY26 Plan | (100 millions of yen) 4,300 295 FY27 Plan | E Electrical& Industrial Proprietary quipment Automation Products Materials Priority measures
management | 14 | |||||||
Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved.
売上高 営業 利益
計画
計画
予想
Next, I will explain the Medium-Term Management Plan.
We review the numerical targets for the next three years by rolling them each fiscal year according to changes in the business environment and the degree of achievement of the plan.
Our targets for fiscal 2027 are ¥430 billion in net sales and ¥29.5 billion in operating profit.
In order to achieve the goals of the Medium-Term Management Plan, we will steadily implement six priority measures.
Outlook for Each Segment (Electrical Equipment & Materials) | |||||
Orders remain strong Promoting business development based on needs External ・Redevelopment projects under way mainly in metropolitan areas environment ・Expansion of development demand due to Osaka IR (Integrated Resort) Entry into information and Expanding market share in Expand of the communications field the Tokyo metropolitan area brand Promote the development Actively deploy human In addition to discover excellent and recruitment of engineers resources to strengthen products from manufacturers, marketing capabilities develop original products Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 15 | |||||
Next, I would like to explain the outlook for each business segment.
Although construction starts are expected to be weak due to a pullback following the last-minute surge in demand triggered by the revision of the Building Energy Efficiency Act, the recovery in capital investment in private sector is expected to continue, and the business
environment surrounding Electrical Equipment & Materials is expected to remain steady overall.
In the current period, orders have been favorable due to the progress on the redevelopment projects mainly in metropolitan areas. We will also seek to capture demand related to the
Osaka IR (Integrated Resort), for which construction has started with the aim of opening in 2030.
Furthermore, in order to advance into the information and communications field, we are
actively working to expand the scope of our businesses. This involves promoting systematic development and recruitment of engineering personnel to improve our construction response capabilities, as well as strengthening our ability to propose equipment related to disaster prevention, disaster mitigation, and crime prevention, for which demand is growing.
As we have developed our business based in the Kansai region, approximately 60% of our total sales have come from western Japan. We will work to strengthen our marketing
capabilities by actively deploying human resources to expand our market share in the Tokyo metropolitan area, which has a larger market.
In "JAPPY," our private brand of Electrical Equipment & Materials, we will continue to discover excellent products from manufacturers as before. In the future, we would also like to take on the challenge of developing original products based on in-house planning.
Outlook for Each Segment (Industrial Automation) | |||||
Taking an aggressive approach toward business expansion backed by recovery in capital investments External ・Increased equipment replacement for labor-saving and DX environment ・Growth forecast for semiconductor market due to increased demand for generative AI Productivity Strengthening of the Improvement of total improvement support Electronics Business proposal capability Providing consulting proposals Strengthening collaboration Promoting proposals for that integrate mechatronics with our suppliers and upstream value chain equipment with IoT expanding employee education (planning and design process) Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 16 | |||||
The market share of Industrial Automation is lower than that of other segments, and we believe there is significant potential to develop new markets.
Demand for equipment replacements for labor-saving and DX is expected to increase. Amid this situation, backed up by the robust corporate earnings, we will strive to support the improvement of productivity in the manufacturing and distribution industries, where labor shortages are serious, by proposing labor-saving solutions that address on-site challenges
and by providing consulting services that integrate mechatronics equipment and IoT.
In addition, we are currently working to expand and strengthen our customer base by
collaborating more closely with our suppliers. We will further strengthen our business by promoting education led by experienced individuals hired mid-career to boost our sales capabilities for electronic products.
In the future, we will not only support manufacturing and distribution processes but also promote proposals for the upstream value chain, including planning and design, by
leveraging our knowledge of software and circuit design to take on the challenge of creating greater added value.
Outlook for Each Segment (Proprietary Products) | |||||||
Expanding overseas sales and establishing brands in other sectors outside the Air Conditioning Sector External ・Strong demand for air conditioning due to heat wave environment ・Expansion of demand for labor-saving due to labor shortages Expansion of Expansion into the piping Establishment of a overseas sales materials market development environment Conducting development and ・Development of local distributors marketing activities with a key concept ・Optimization of global logistics strategy of "construction-saving" ・Enhancement of localized products ("HoldOne") Innovation Center Won multiple product awards! (Scheduled to be completed in 2027) Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 17 | |||||||
In Proprietary Products, we are not only determined to maintain our top domestic market share in air conditioning components and materials but also pursuing sales expansion overseas.
We will expand our sales area by developing local distributors and improve our cost
competitiveness by refining our logistics strategy. In addition, we are planning to organize a project to promote the development and improvement of localized products with the aim of expanding our range of products for overseas market.
In other sectors outside the Air Conditioning Sector, we are focusing on developing piping material products with "construction-saving" as a key concept. Recently, "HoldOne," a new piping material, has received high acclaim, including winning both the Excellence Award of the "Outstanding Products and Technologies Award" from the Japan Building Materials
Association and the "GOOD DESIGN AWARD" from the Japan Institute of Design Promotion.
In addition, in order to accelerate these efforts, we announced in May this year that we would be building an R&D facility called the "Innovation Center." Construction is scheduled to be completed in the summer of 2027. Once the Innovation Center has been
launched, we aim to further strengthen the INABA brand by concentrating our Proprietary Products operations there.
FY24 | % of Net sales | FY25 | % of Net sales | YoY change amount | YoY change % | |
Net sales | 384,012 | 100% | 392,000 | 100% | 7,987 | 2.1% |
Operating profit | 25,556 | 6.7% | 26,700 | 6.8% | 1,143 | 4.5% |
Ordinary profit | 26,698 | 7.0% | 27,400 | 7.0% | 701 | 2.6% |
Profit attributable to owners of parent | 18,783 | 4.9% | 19,400 | 4.9% | 616 | 3.3% |
Electrical Equipment & Materials | 271,054 | 71% | 273,000 | 70% | 1,945 | 0.7% |
Industrial Automation | 38,144 | 10% | 42,000 | 11% | 3,855 | 10.1% |
Proprietary Products | 74,814 | 19% | 77,000 | 20% | 2,185 | 2.9% |
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(Millions of yen)
(Net sales by segment)
Earnings Forecast for the FY2025
For the fiscal year ending March 31, 2026, we forecast earnings as follows.
¥ 392 billion in net sales, ¥ 26.7 billion in operating profit, ¥ 27.4 billion in ordinary profit, and ¥ 19.4 billion in profit attributable to owners of parent.
By segment, the net sales forecast is ¥273 billion in Electrical Equipment & Materials, ¥42 billion in Industrial Automation, and ¥77 billion in Proprietary Products.
In the first six months of the fiscal year under review, sales increased mainly in Electrical Equipment & Materials and Proprietary Products.
While redevelopment projects in metropolitan areas and corporate capital investment demand are expected to remain steady in the second half of the fiscal year and beyond, we have maintained our earnings forecast due to anticipated uncertainties such as labor shortages in the distribution and construction industries, the impact of the U.S. tariff policy and trends in raw materials prices.
Shareholder Returns | ||
Shareholder return policy Aiming for medium-term total payout ratio of around 60%, combining dividends and acquisition of own shares Dividends Acquisition of Share split own shares (yen) 130 140 140* (100 millions of yen) 44 * [Ratio] 1 share → 2 shares Fiscal-year 70* 27 end [Record date] 15.8 November 30, 2025 Second quarter-end [Effective date] December 1, 2025 FY23 FY24 FY25 *Forecast (pre-split conversion) *Planned amount Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 19 | ||
We also recently announced a share split and the acquisition of own shares.
The share split aims to reduce our company's investment units, thereby creating a more accessible investment environment for investors with the aim of improving the liquidity of our company's shares and expanding the shareholder base.
We will implement a share split at a ratio of two shares for every one share with November 30, 2025 as the record date.
The acquisition of own shares aims to return profits to shareholders based on the shareholder return policy of achieving a medium-term total payout ratio of around 60% from dividends and the acquisition of own shares.
The maximum acquisition price is ¥4.4 billion, and maximum number of shares is 1.05 million shares, or 2.1 million shares after the split. The acquisition started on November 4, 2025.
We will continue to strive to maximize our corporate value through management that is conscious of cost of capital and stock prices.
Contact Us | ||
▌Business Planning Department Tel 06-4391-1835 E-mail keiki@inaba.co.jp URL https://www.inaba.co.jp/ Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved. 20 | ||
This concludes my explanation of Inaba Denki Sangyo Co., Ltd.'s second quarter results for the fiscal year ending March 31, 2026.
Thank you for your listening.