Securities Report - 69th Fiscal Period (2025/04/01 - 2026/03/31)

Nagoya Denki Kogyo Co., Ltd. Securities Report - 69th Fiscal Period (2025/04/01 - 2026/03/31)

The company hereby submits its securities report for the 69th fiscal period (April 1, 2025 to March 31, 2026) in accordance with the Financial Instruments and Exchange Act. This report is prepared as part of our commitment to transparent disclosure for investors and stakeholders, containing key information on business performance, financial condition, management policies, future outlook, and risk factors essential for assessing corporate health and prospects.

Nagoya Denki Kogyo Co., Ltd., established in 1953, is an electrical equipment manufacturer specializing in the design, manufacturing, and sales of industrial power supplies, control devices, and electronic components. The company has long demonstrated technical expertise in Japan’s automotive, semiconductor manufacturing equipment, and industrial robotics sectors. In recent years, it has increasingly focused on developing green energy-related equipment and IoT-enabled control systems.

For the 69th fiscal period, the company forecasts a 3.5% year-on-year increase in sales to ¥18.2 billion, with operating profit projected to rise 4.2% to ¥1.48 billion. This growth is primarily driven by increased new orders, particularly rising demand for power conditioners in the solar power sector. Additionally, overseas sales are expected to account for 28% of total revenue, supported by strengthened sales networks through local subsidiaries in Southeast Asia.

Research and development expenses are budgeted at ¥870 million, representing 4.8% of sales. Of this, 60% will be allocated to next-generation power technologies, 20% to AI-integrated predictive maintenance systems, and the remaining 20% to energy-saving technologies. The company plans to begin mass production of high-efficiency power modules using silicon carbide (SiC) in fiscal year 2025.

Regarding ESG initiatives, the company has set a target to reduce CO2 emissions from its domestic factories by 50% by 2030 compared to 2019 levels. Construction is currently underway to install solar panels and battery storage systems at the Nagoya First Plant. The company is also advancing a diversity initiative aiming to increase the ratio of female managers to over 15% by 2025.

Looking ahead, the company plans to accelerate technological development and global expansion to respond to three major market trends: vehicle electrification, smart factories, and renewable energy adoption. The company is currently evaluating the expansion of production bases into India and Vietnam, with investment decisions targeted for 2026.

The forward-looking statements contained in this report are based on current information available to the company and certain assumptions. Actual results may differ materially due to factors such as global economic conditions, foreign exchange fluctuations, raw material price volatility, natural disasters, and geopolitical risks.