Consolidated Results for the First Half of Fiscal Year Ending February 28, 2023 [IFRS]

Listed company name: YASKAWA Electric Corporation https://www.yaskawa.co.jp/en/

Representative: Hiroshi Ogasawara, Representative Director, Chairman of the Board, President

Stock exchange listings: Tokyo and Fukuoka

(Note: This document is a summarized translation of the financial statement submitted to the Tokyo Stock Exchange and Fukuoka Stock Exchange for the period stated above. Figures under ¥1 million are rounded down.)

1. Summary of Consolidated Results for the First Half of the Fiscal Year Ending February 28, 2023 (From March 1, 2022 to August 31, 2022)

(Millions of yen, percentage change from the previous year)

(Millions of yen, except ratio)

of parent to total assets

Note: Revisions to the most recently announced dividend forecast: No

3. Consolidated Financial Forecasts for the Fiscal Year Ending February 28, 2023

(Millions of yen, percentage change from the corresponding period of the previous year)

Note: Revisions to the most recently announced financial forecasts: Yes

The forecast for the fiscal year ending February 2023 (March 1, 2022 - February 28, 2023) is shown above. The automotive, semiconductor, and electronic components markets expanded globally and demand for new infrastructure remained high in China. As we continue to receive strong orders, especially in the Robotics segment, we will strive to expand revenue by strengthening production and procurement.

On the other hand, although there is an improvement on the profit side due to the increase in revenue, the impact of the rise in raw material and logistics costs have been greater than expected, so we have made a revision to our annual forecasts for the fiscal year ending February 28, 2023, which we announced on April 8, 2022.

Average exchange rate assumptions during the period from September 1, 2022 to February 28, 2023 are revised from 1USD = 120.0 JPY, 1EUR = 133.0 JPY, 1CNY = 19.00 JPY at the first quarter results announcement to 1USD = 140.0 JPY, 1EUR = 140.0 JPY, 1CNY = 20.00 JPY. (Assumption for KRW remains at 1KRW = 0.100 JPY)

Our forecast for annual dividend remains unchanged.

*Please see supplements to financial results on our website for detailed information. https://www.yaskawa-global.com/ir/materials/br

The number of shares outstanding

The number of treasury shares

4. Qualitative Information on Quarterly Results Business Performance

In the second quarter under review, capital investment to upgrade and automate production in the manufacturing industry as a whole continued. In addition to globally growing demand related to the adoption of EVs and lithium-ion batteries, capital investments were made aggressively in the semiconductor and electronic components markets, especially in the United States. In China, although there were movements toward normalization from the lockdown resulting from the COVID-19 outbreak, capital investment did not recover fully.

In this environment, although the business was affected by production constraints due to a prolonged shortage of semiconductors and other components, the revenue increased year on year as production recovered from the second quarter through the use of alternative components, design changes, and purchases of parts in the commercial market. On the profit front, operating profits were affected by a significant rise in raw material and logistics costs, but due to the depreciation of the yen and other income generated by changes in the retirement pension system as well as proceeding with passing the costs on customers, operating profits increased. As a result, the revenue and the operating profit set a new record for the figure of the first half of the year.

Demand remained high in the semiconductor and electronic component markets as well as the automobile market.

Demand related to automobiles and semiconductors grew strongly, and investment in automation continued against the backdrop of labor shortages and rising labor costs. In addition, oil and gas-related demand remained high, indicating an overall expansion trend.

Demand remained steady, particularly for automobiles and woodworking machinery due to continued investments in automation.

Demand for automobiles and new infrastructure-related products remained strong against the backdrop of the acceleration of the adoption of EVs. However, demand remained sluggish overall as capital investment declined in the general industries due to a large impact of the lockdown because of COVID-19.

Demand for automobiles and semiconductor-related products remained high, especially in South Korea, and capital investment related to lithium-ion batteries grew.

The business performance of the first half of fiscal 2022 is as follows.

Profit attributable to owners of parent

Average exchange rate for USD

Average exchange rate for EUR

Average exchange rate for CNY

Average exchange rate for KRW

The business of the Yaskawa Group is divided into four segments.

The performance of each business segment for the first half of fiscal 2022 is as follows.

The Motion Control segment consists of the AC servo & controller business and the drives business.

Despite the impact of the lockdown in China, there was a year-on-year increase in revenue due to continued aggressive capital investment in semiconductor and oil and gas related businesses, particularly in the United States. In terms of profits, operating profits decreased due to a decline in revenue in China and the global impact of rising raw material and logistics costs.

[ AC servo & controller business]

Demand for semiconductors and electronic components continued to be high mainly in Japan, and the United States. Although demand remained steady in the growing markets such as EVs and lithium-ion batteries and solar panels in China, capital investment declined in the general industries. As a result, revenue increased as a whole.

In the United States, demand following an increase in capital investment related to oil and gas led to strong sales. In China, revenue decreased because of the impact of the lockdown while demand increased for lithium-ionbattery-related products as well as the automation and energy-saving of production facilities. As a result, the overall revenue increased.

In the automobile market which is the principal market in the robotics segment, the adoption of EVs accelerated globally and related capital investment such as for lithium-ion batteries continued to expand. Also, the growing demand in the semiconductor and electronic components markets led to strong sales performance of semiconductor robots. Moreover, in the general industrial sector including the food market, investments were also made for the purpose of upgrading and automating production through the use of collaborative robots and other

facilities. As a result, revenue and operating profit increased significantly year

Revenue was sluggish in electric systems for water supply and sewerage in Japan and port cranes in Asia, which led to a decrease in revenue year on year. On the profit front, despite of thorough cost reduction, profit decreased due to a revenue decline.

357 million JPY (improved by 336 million JPY year-on-year)

Other segment consists of logistics and other businesses.

Revenue increased year on year mainly in logistics business in Japan, while operating profit increased due to improvement of profitability following its revenue expansion.

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Yaskawa Electric Corporation published this content on 07 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 October 2022 07:11:03 UTC.