Monetary Outcomes Briefing for

3Q of the Fiscal 12 months Ended March 31, 2021 (Fiscal 2020)

－From April 1 to December 31, 2020－

February 10, 2021

The forward-trying statements contained on this materials mirror the administration’s assumptions primarily based on presently obtainable info as of the date of announcement. Future adjustments in enterprise surroundings and different elements might subsequently trigger variations with the precise scenario.

©TOKYO KEIKI INC. All Rights Reserved

Abstract of 3Q Outcomes

(From April 1 to December 31, 2020)

•  The Hydraulics and Pneumatics Enterprise noticed a agency restoration pattern on the Chinese language market. Nevertheless, market restoration was sluggish in Japan regardless of the bottoming out of demand decline on main markets because of COVID-19.
•  Full-year earnings forecast is for a slight improve in earnings pushed by a discount in SG&A bills.
•  The Protection & Communications Tools Enterprise launched new merchandise for the semiconductor manufacturing gear market.
•  Adopted new shareholder advantages program.

Launched new merchandise on semiconductor manufacturing gear market

“Strong state microwave energy provide for movie deposition gear”

Along with our current merchandise for etching gear, in 3Q we launched a microwave energy provide for movie deposition gear.

Planning to start out full-scale mass manufacturing starting in FY2022.

We are going to apply our experience in microwave expertise to advance the event of semiconductor microfabrication and make steady expertise developments in the direction of the conclusion of Society 5.0, the imaginative and prescient for a future digital society.

Utilizing a strong state gadget because the microwave energy supply as an alternative of a traditional magnetron permits us to offer better advantaqge, resembling steady frequency traits and better precision microfabrication.

Frequency traits | Comparability

【Magnetron】

Pointless elements

are generated within the

neighborhood of the required

frequency

【Strong state】

Permits for straightforward

collection of required

frequency solely

Modifications in consolidated revenue & loss

【Web Gross sales】

【Working Revenue】

（Million yen）

（Million yen）

46,692

47,440 （Forecast）

2018/3

2019/3

2020/3

2021/3

2018/3

2019/3

2020/3

△ 370 2021/3

*Full 12 months forecast of Fiscal 2020 was modified in “Abstract of economic outcomes for the third-quarter of fiscal 2020″ on February 10, 2021.

Quarterly adjustments in internet gross sales

（Million yen）

15,766

2017/3	2018/3	2019/3	2020/3	2021/3-3Q
¥41,394 million	¥43,803 million	¥46,692 million	¥47,440 million	¥28,718
million

Quarterly adjustments in working earnings

（Million yen）

2,162

2017/3	2018/3	2019/3	2020/3	2021/3-3Q
¥1,121 million	¥1,319 million	¥2,440 million	¥1,875 million	¥△370
million

6

*Web gross sales earlier than adjustment.

*”Hearth Extinguishing Techniques Enterprise”, which has been included underneath “Different Companies”, is included underneath the

“Fluid Measurement Tools Enterprise” in Fiscal 2018. The quantities earlier than Fiscal 2018 are up to date to mirror the section change.

*Full 12 months forecast of Fiscal 2020 was modified in “Abstract of economic outcomes for the third–quarter of fiscal 2020″

on February 10, 2021.

Tools

*Working earnings earlier than adjustment.

*”Hearth Extinguishing Techniques Enterprise”, which has been included underneath “Different Companies”, is included underneath the

“Fluid Measurement Tools Enterprise” in Fiscal 2018. The quantities earlier than Fiscal 2018 are up to date to mirror the section change.

*Full 12 months forecast of Fiscal 2020 was modified in “Abstract of economic outcomes for the third–quarter of fiscal 2020″

on February 10, 2021.

3. Fiscal 2020 3Q Progress Fiscal 2020 3Q progress

（Million yen）

Web Gross salesWorking

RevenueUnusual

RevenueRevenue attributable to homeowners of mum or dad

Forecast firstly of the fiscal 12 months

Full 12 months forecast

Remaining 43,000

14,282 46,700

Remaining 1,180

Remaining 1,174

Remaining 787

810 1,930

980 2,050

650 1,530

*Full 12 months forecast of Fiscal 2020 was modified in “Abstract of economic outcomes for the third–quarter of fiscal 2020″

on February 10, 2021.

3. Fiscal 2020 3Q Progress Progress of internet gross sales by section

（Million yen）

Marine TechniquesHydraulics and PneumaticsFluid Measurement ToolsProtection and Communications ToolsOthers

Forecast firstly of the fiscal 12 months

Development charge 46.2％

*Web gross sales earlier than adjustment.

Full 12 months forecast

8,590 9,200

10,380 12,500

3,950 4,200

16,730 17,000

3,360 3,700

*Full 12 months forecast of Fiscal 2020 was modified in “Abstract of economic outcomes for the third-quarter of fiscal 2020″ on February 10, 2021.

-Forecasting decreased internet gross sales because of decrease demand for brand spanking new shipbuilding on the industrial vessel market and in abroad markets, significantly Asia, because of the influence of COVID-19.

-Forecasting decreased internet gross sales because of sluggish restoration on mainstay markets, plastic processing equipment, machining instruments, and development equipment, in markets aside from China because of the influence of COVID-19.

-The general public-sector market is anticipated to pattern roughly in keeping with forecasts, however internet gross sales are anticipated to say no as a result of some initiatives in private-sector market and abroad markets might be postponed to subsequent fiscal 12 months because of COVID-19.

-There was a rise in gross sales quantity of satellite tv for pc communications antenna stabilizers, however internet gross sales are anticipated to say no as a result of some abroad initiatives and private-sector initiatives have been postponed to subsequent fiscal 12 months because of COVID-19.

-Railway Upkeep Enterprise internet gross sales forecast as largely on par with plans however forecasting decreased internet gross sales in different companies because of the suspension or postponement of sure initiatives because of the influence of COVID-19.

3. Fiscal 2020 3Q Progress

Progress of working revenue by section

（Million yen）

Marine TechniquesHydraulics and PneumaticsFluid Measurement ToolsProtection and Communications ToolsOthers

Forecast firstly of the fiscal 12 months

△ 59

△ 109

Development charge 20.3％

*Working earnings earlier than adjustment.

Full 12 months forecastRemaining △56

Remaining △101

Remaining 279

Remaining 459

210 260

△580 310

580 620

350 290

350 540

*Full 12 months forecast of Fiscal 2020 was modified in “Abstract of economic outcomes for the third-quarter of fiscal 2020″ on February 10, 2021.

-Though working earnings improved in comparison with 2Q forecasts (+110 million yen), we forecast working earnings will fall under preliminary forecasts because of the influence of decreased internet gross sales.

-Anticipating an working loss because of weaker internet gross sales and deteriorating cost-of-sales ratio from decline in operation capability.

-Though working earnings improved in comparison with 2Q forecasts (+60 million yen), we forecast working earnings will fall under preliminary forecasts because of the influence of decreased internet gross sales.

-Forecasting elevated working earnings in comparison with 2Q forecast (+30 million yen).

-The Railway Upkeep Enterprise is anticipated to pattern in keeping with forecasts, however all others are anticipated to see a decline in working revenue because of weaker internet gross sales.

4. Standing of Orders Acquired and Order Backlog

 The Hydraulics and Pneumatics Enterprise skilled a big downturn in orders and order backlog because of declining demand within the plastic processing equipment market, machine device market, and development equipment market attributable to COVID-19 from the second quarter on.

 The order backlog for the Protection & Communications Tools Enterprise declined largely 12 months on 12 months after a peak in mass-production orders for radar warning receivers within the public-sector market, which continued as much as the earlier third quarter.

5. Consolidated Steadiness Sheets (Foremost accounting objects solely)

（Belongings）

（Liabilities and internet belongings）

decreased considerably because of the gathering of accounts receivable for the Protection & Communications Tools Enterprise that had elevated on the finish of the earlier fiscal 12 months. (down 6,023 million yen in comparison with finish of earlier fiscal 12 months)



Liabilities decreased because of a lower in buy liabilities (notes and accounts payable) and compensation of loans payable (long- and short-term liabilities collectively decreased by 621 million yen)

 Retained earnings decreased because of dividends (409 million yen) and internet loss attributable to homeowners of mum or dad

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Revenue returns to shareholders

[Basic policy]

Implement steady returns to shareholders whereas sustaining steadiness with monetary capability.

Concerning using inner reserves

Allocate investments aimed toward “new expertise analysis” “new product improvement,” “productiveness enchancment,” “abroad base enlargement,” “human useful resource improvement,” “organizational capability constructing,” “administration useful resource enhancement,” and many others., which function the sources for profitability (incomes energy), in

order to attain sustainable development and enhance medium-to-long-term company worth, whereas taking capital effectivity under consideration.

Dividend for the final 5 years and forecast for Fiscal 2020

2016/3	2017/3	2018/3	2019/3	2020/3	2021/3 （Forecast）
Annual dividend per share (yen)	5.00（Frequent, 4 + Commemorative, 1）	4.00	20.00	25.00	25.00	25.00
Payout ratio (consolidated) (%)	33.2	46.8	29.6	21.3	28.8	63.0
Complete return ratio (consolidated) (%)	39.8	46.8	37.1	25.6	34.7	―

*From Fiscal 2017 (2018/3) onward, dividend quantities are these after consolidation of shares.

(Dividend quantity earlier than consolidation of shares is 1/5 of quantity proven.)

Standing of current acquisition of treasury shares

Shareholder advantages program

1) Goal of adoption

We established the brand new TOKYO KEIKI Premium Advantages Membership as a brand new shareholder advantages program to precise our gratitude for the continuing help of our shareholders, to additional improve the enchantment of investing in our inventory, and to extend shareholders excited about medium- to long-term inventory retention. By the adoption of this program, we are going to work to additional improve our communication with our shareholders.

2)Overview

-Eligibility for shareholders retaining 3 or extra buying and selling models (300 shares) as of the tip of March every year.

-Eligible shareholders are awarded factors primarily based on their variety of retained shares. Shareholders can entry the TOKYO KEIKI Premium Advantages Membership members-only web site to pick from over 4,000 merchandise for which they’ll change factors. The factors could be additionally donated to social contribution actions. Alternatively, shareholders can change factors for WILLsCoin, the common shareholder advantages coin. WILLsCoin balances could be added to the factors earned by means of the inventory advantages applications of different corporations enrolled within the Premium Advantages Membership.

Retained shares	Awarded factors	Allocation timing
300 shares or much less	0 factors	ー
300 to 499 shares	3,000 factors	Yearly in Might
500 to 699 shares	6,000 factors
700 to 999 shares	9,000 factors
1,000 to 2,999 shares	20,000 factors
3,000 or extra shares	50,000 factors