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Dedicated to reliable fire prevention and protection for people, businesses, communities and society FY2021/3 Results of Operations May 25, 2021 NOHMI BOSAI LTD.

FY2021/3 Results of Operations

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Page 1: FY2021/3 Results of Operations

Dedicated to reliable fire prevention and protection for people, businesses, communities and society

FY2021/3 Results of Operations

May 25, 2021 NOHMI BOSAI LTD.

Page 2: FY2021/3 Results of Operations

Ⅰ. Consolidated Results FY2021/3

2

Page 3: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 3

Orders climbed to a new record due to the strong performance of the fire extinguishing systems segment despite restrictions on some business activities due to COVID-19.

The initial sales and earnings forecasts were achieved as business operations continued along with COVID-19 safety measures.

The initial forecasts for sales and earnings were achieved

For public safety, business operations focused on providing reliable fire protection systems. All business activities were accompanied by COVID-19 safety measures in compliance with government policies.

Priority on public safety even during the state of emergency

Financial Highlights

Record-high orders

Page 4: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Consolidated Results of Operation

4

FY2020/3 FY2021/3 Vs. FY2020/3 Vs. PlanResults Plan Results Amount Pct. Amount Pct.

New orders 111,872 105,000 113,308 +1,436 +1.3% +8,308 +7.9%

Net sales 117,294 107,000 107,897 -9,396 -8.0% +897 +0.8%

Cost of sales 66.5% 67.9% 67.4% +0.9pt ― -0.5pt ―

Gross profit 39,305 34,400 35,127 -4,178 -10.6% +727 +2.1%

SG&A expenses 24,165 23,400 24,073 -92 -0.4% +673 +2.9%

Operating income 15,139 11,000 11,053 -4,085 -27.0% +53 +0.5%

Operating margin 12.9% 10.3% 10.2% -2.7pt ― -0.1pt ―

Ordinary income 15,448 11,200 11,494 -3,953 -25.6% +294 +2.6%

Net income attributable to owners of parent

10,516 7,450 7,620 -2,895 -27.5% +170 +2.3%

EPS (yen) 174.41 123.55 126.38ROE 11.4% 7.7% 7.7%

(Million yen)

Page 5: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Consolidated Results by Segments

5

FY2020/3 FY2021/3 Vs. FY2020/3 Vs. Plan

Results Plan Results Amount Amount

Fire Alarm Systems

Net sales 41,108 37,652 38,039 -3,068 +387Operating income 7,672 6,469 5,979 -1,693 -490Operating margin 18.7% 17.2% 15.7% -3.0pt -1.5pt

Fire Extinguishing Systems

Net sales 42,805 39,059 38,481 -4,323 -577Operating income 7,984 6,313 6,568 -1,415 +254Operating margin 18.7% 16.2% 17.1% -1.6pt +0.9pt

Maintenance Services

Net sales 27,482 25,320 26,688 -794 +1,367Operating income 6,162 4,957 5,392 -769 +435Operating margin 22.4% 19.6% 20.2% -2.2pt +0.6pt

OthersNet sales 6,272 5,341 5,038 -1,233 -302Operating income 490 297 253 -236 -43Operating margin 7.8% 5.6% 5.0% -2.8pt -0.6pt

Elimination/Corporate

Net sales -373 -373 -349 +23 +23Operating income -7,168 -7,039 -7,140 +28 -101

ConsolidatedNet sales 117,294 107,000 107,897 -9,396 +897Operating income 15,139 11,000 11,053 -4,085 +53

(Million yen)

Page 6: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 6

15,139

11,053

+92

-3,147

-1,030

2020/3 2021/3

Gross profit down due to lower sales

Higher cost of sales ratio

• Many high-margin projects in FY2020/3

Small decrease in SG&A expenses

11,000 11,053

+288 +439 -673

Initialplan

2021/3

Higher gross profit as sales exceeded

the plan

Improvement in the gross margin

• Did not fall as much as expected

Higher SG&Aexpenses

• Increase in personnel expenses

Analysis of Change in Operating Income

Vs. FY2020/3 (million yen) Vs. Plan (million yen)

Page 7: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 7

15,280 16,308 15,901 16,288 15,841

19,164 21,409 22,477 24,819 22,198

0

10,000

20,000

30,000

40,000

50,000

2017/3 2018/3 2019/3 2020/3 2021/3

41,10838,039

34,44437,718 38,379

5,544 6,640 6,911 7,672

5,979

16.117.6 18.0 18.7

15.7

0

5

10

15

20

25

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2017/3 2018/3 2019/3 2020/3 2021/3

Segment Income Op. Margin (%)

2020/3 2021/3 Vs. 20/3(%)

Vs. Plan(%)Actual Plan Actual

New orders 38,441 38,500 37,466 -2.5 -2.7Backlog of orders 11,728 ― 11,243 -4.1 ―

Net sales 41,108 37,652 38,039 -7.5 +1.0

Installation 24,819 21,732 22,198 -10.6 +2.1

Product Sales 16,288 15,920 15,841 -2.7 -0.5Segment income 7,672 6,469 5,979 -22.1 -7.6

Orders were slightly below the plan and down from FY2020/3 as market conditions remained uncertain because of COVID-19.

Sales decreased, mainly for installation work, but were higher than the plan.

Installation Product sales

The operating margin decreased in part because of the large number of projects with relatively high margins in FY2020/3.

Segment Information Fire Alarm Systems

(Million yen) (Million yen)

Net Sales (before elimination) Segment Income & Operating Margin

Page 8: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 8

16,267 23,145 19,867 23,553 19,977

15,725

14,297 17,250 19,251

18,504

0

10,000

20,000

30,000

40,000

50,000

2017/3 2018/3 2019/3 2020/3 2021/3

42,80538,481

31,99337,443 37,118

5,638 7,647

5,349

7,984 6,568

17.620.4

14.4

18.717.1

0

5

10

15

20

25

01,0002,0003,0004,0005,0006,0007,0008,000

2017/3 2018/3 2019/3 2020/3 2021/3

Segment Income Op. Margin (%)

2020/3 2021/3 Vs. 20/3(%)

Vs. Plan(%)Actual Plan Actual

New orders 40,419 36,700 44,469 +10.0 +21.2Backlog of orders 34,133 ― 40,187 +17.7 ―

Net sales 42,805 39,059 38,481 -10.1 -1.5General properties 19,251 17,479 18,504 -3.9 +5.9Special facilities 23,553 21,580 19,977 -15.2 -7.4

Segment income 7,984 6,313 6,568 -17.7 +4.0

Orders increased 10% because the receipt of orders for large projects as well as orders involving cultural properties.

Sales decreased 10% because FY2020/3 sales included the completions of many large projects for special facilities.

General properties Special facilities

The operating margin decreased because of the performance of individual projects.

Segment Information Fire Extinguishing Systems

(Million yen) (Million yen)

Net Sales (before elimination) Segment Income & Operating Margin

Page 9: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 9

10,475 10,922 11,659 12,863 11,656

13,607 13,968 14,172 14,619 15,031

0

5,000

10,000

15,000

20,000

25,000

30,000

2017/3 2018/3 2019/3 2020/3 2021/3

27,482 26,68824,082 24,890 25,831

4,878 4,987 5,488 6,162 5,392

20.3 20.0 21.2 22.420.2

0

5

10

15

20

25

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2017/3 2018/3 2019/3 2020/3 2021/3

Segment Income Op. Margin (%)

2020/3 2021/3 Vs. 20/3(%)

Vs. Plan(%)Actual Plan Actual

New orders 26,935 24,200 26,436 -1.9 +9.2Backlog of orders 4,024 ― 3,773 -6.2 ―

Net sales 27,482 25,320 26,688 -2.9 +5.4

Maintenance 14,619 13,320 15,031 +2.8 +12.8

Repairs 12,863 12,000 11,656 -9.4 -2.9Segment income 6,162 4,957 5,392 -12.5 +8.8

Orders decreased because of COVID-19 but not as much as anticipated, resulting in orders that were higher than planned.

Segment sales decreased but there were maintenance sales increased due to consistent sales activities for maintenance and inspection services.

Maintenance Repairs

The operating margin decreased because of the large number of renovation projects in FY2020/3.

Segment Information Maintenance Services

(Million yen) (Million yen)

Net Sales (before elimination) Segment Income & Operating Margin

Page 10: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 10

1,502 1,864 2,062 2,345 1,558

3,703 3,503 3,745 3,926

3,479

0

2,000

4,000

6,000

8,000

2017/3 2018/3 2019/3 2020/3 2021/3

6,272

5,0385,206 5,368 5,807

353 185 319 490 253

6.8

3.55.5

7.85.0

0

5

10

15

20

25

0

500

1,000

1,500

2,000

2,500

2017/3 2018/3 2019/3 2020/3 2021/3

Segment Income Op. Margin (%)

2020/3 2021/3 Vs. 20/3(%)

Vs. Plan(%)Actual Plan Actual

New orders 6,075 5,600 4,936 -18.8 -11.9Backlog of orders 747 ― 840 +12.5 ―

Net sales 6,272 5,341 5,038 -19.7 -5.7Parking lot system 3,926 3,570 3,479 -11.4 -2.5

Others 2,345 1,771 1,558 -33.5 -12.0Segment income 490 297 253 -48.2 -14.6

Parking lot system Others

Sales of parking lot systems were impacted by the lower utilization rate of parking facilities in Japan as people stayed home for safety during the pandemic.

Orders, sales and earnings all decreased and were also below the plan.

Segment Information Others

(Million yen) (Million yen)

Net Sales (before elimination) Segment Income & Operating Margin

Page 11: FY2021/3 Results of Operations

11

Ⅱ. Forecast for FY2022/3

Page 12: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Forecast for FY2022/3 (Consolidated)

12

FY2021/3 FY2022/3 Vs. FY2021/3

Actual Forecast Amount Pct.

New orders 113,308 122,000 +8,691 +7.7%

Net sales 107,897 120,800 +12,902 +12.0%

Gross profit 35,127 39,950 +4,822 +13.7%Gross margin 32.6% 33.1% +0.5pt ―

SG&A expenses 24,073 26,450 +2,376 +9.9%

Operating income 11,053 13,500 +2,446 +22.1%Operating margin 10.2% 11.2% +1.0pt ―

Ordinary income 11,494 13,800 +2,305 +20.1%

Net income attributable to owners of parent 7,620 9,300 +1,679 +22.0%

EPS (yen) 126.38 154.23ROE 7.7% 9.1%

(Million yen)

Page 13: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

FY2022/3 Forecast Highlights

13

We expect concerns and uncertainty to continue throughout FY2022/3 about construction delays and a downturn in private-sector capital expenditures.

The outlook remains unclear because of the COVID-19 crisis

We forecast higher sales and earnings because the order backlog at the beginning of FY2022/3 was 10% higher than one year earlier. The goal is record-high orders and sales despite the uncertain business climate.

Forecast double-digit sales and earnings growth due to a large order backlog

In FY2022/3, the final year of the current medium-term plan, sales are expected to fall short of the plan’s goal but we expect to achieve the operating margin goal.

Plan to maintain an operating margin above the target of 10%

Page 14: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Forecast for FY2022/3 by Segments

14

FY2021/3 FY2022/3 Vs. FY2021/3Actual Forecast Amount Pct.

Fire Alarm Systems

Net sales 38,039 46,077 +8,037 +21.1%Operating income 5,979 9,114 +3,135 +52.4%Operating margin 15.7% 19.8% +4.1pt ―

Fire Extinguishing Systems

Net sales 38,481 42,205 +3,724 +9.7%Operating income 6,568 6,710 +142 +2.2%Operating margin 17.1% 15.9% -1.2pt ―

Maintenance Services

Net sales 26,688 27,270 +582 +2.2%Operating income 5,392 5,161 -231 -4.3%Operating margin 20.2% 18.9% -1.3pt ―

OthersNet sales 5,038 5,595 +557 +11.1%Operating income 253 200 -53 -21.1%Operating margin 5.0% 3.6% -1.4pt ―

Elimination/Corporate

Net sales -349 -349 ― ―Operating income -7,140 -7,687 -546 ―

ConsolidatedNet sales 107,897 120,800 +12,902 +12.0%Operating income 11,053 13,500 +2,446 +22.1%

(Million yen)

Page 15: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 15

11,053

13,500

+4,206

+616-2,376

2021/3 2022/3

Higher gross profit due to sales growth

Higher SG&A• Increases in

personnel, IT system and other expenses

Improvement in the gross margin• Outlook for large projects

with relatively high margins

Analysis of Operating Income Forecast

(Million yen)

Actual Forecast

Page 16: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 16

15,841 22,670

22,198

23,407

0

10,000

20,000

30,000

40,000

50,000

2021/3 2022/3

Goal is a big increase in sales based on the outlook for large projects and other reasons

19,977 24,730

18,504 17,475

0

10,000

20,000

30,000

40,000

50,000

2021/3 2022/3

Anticipate a big increase in sales involving projects for special facilities based on orders received during FY2021/3

46,077

38,48138,03942,205

Installation Product sales General properties Special facilities

Forecast by Segments (1) Fire Extinguishing Systems

Fire Alarm Systems

Fire Alarm Systems Fire Extinguishing Systems

(Million yen) (Million yen)

(Forecast) (Forecast)

Page 17: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 17

11,656 12,270

15,031 15,000

0

5,000

10,000

15,000

20,000

25,000

30,000

2021/3 2022/31,558 1,885 3,479 3,710

0

5,000

10,000

15,000

20,000

25,000

30,000

2021/3 2022/3

26,688 27,270

5,5955,038

Expect sales to remain steady despite the uncertain outlook for the business climate

Anticipate parking lot systems sales to start recovering after the downturn in FY2021/3, although market conditions will remain uncertain because of COVID-19

Maintenance Repairs Parking lot system Others

Forecast by Segments (2) Maintenance Services Others

Maintenance Services Others

(Million yen) (Million yen)

(Forecast) (Forecast)

Page 18: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

7.5 7.5 7.5 7.5 10.0 10.0 13.0* 12.516.0 16.0 16.5 18.0

7.5 7.5 7.5 10.010.0 12.0

11.016.0

16.0 17.0 16.518.0

0

5

10

15

20

25

30

35

40

2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3

Interim Year-end

Dividends and Shareholder Distributions

18

(Yen) Dividends per Share

*Including 2 yen of commemorative

dividend

15 151517.5

2022

24

28.532 33 33

Payout ratio 48.5% 50.6% 31.4% 21.9% 21.4% 20.0% 20.8% 18.8% 24.7% 18.9% 26.1% 23.3%

36

Consistent dividends are the priority for shareholder distributions

Dividends have never been reduced since 1978, excluding special dividends

(Forecast)

Page 19: FY2021/3 Results of Operations

19

Ⅲ. Medium-term Plan“project 2021”

(FY2020/3-FY2022/3)

Page 20: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Thinking behind the Medium-term Plan

20

Business conceptualizationcapabilities

Creating new ideas for value

Business execution capabilities

The provision of value

Operational precision and speed

As a pioneer in the fire protection industry, Nohmi will continue to be a source of value that contributes to public safety by using foresight

about upcoming changes in markets and the world.

Our mission

Stronger On-site Capabilities the key to adapt to changes in the business climate and move on to an even

higher stage

On-site capabilities

On-site capabilities are the ability to discover issues and problems at job sites on our own with the involvement of everyone and the ability to use the resources of the entire organization to devise solutions.

Page 21: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Overview of the Medium-term Plan

21

Vision Toward Dramatic Growth Based on Strong “On-site Capabilities”

(1) Improve human resource capabilities

(3) Strengthen group management

Priority policies of Medium-Term Business Plan

Continue to be pioneers in fire protection fields as a comprehensive fire protection company

Create a foundation for even higher stages of growth (investments, new initiatives).

(2) Improve business conceptualization and execution capabilities/improve operational precision and speed

Page 22: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Stronger on-site capabilities – A higher stage that reflects market conditions

22

2019 2020 2021

On-site capabilities improved following COVID-19 measures

On-site capabilities

FY

During COVID-19 activity restrictions:• Upgraded crisis response skills• Innovations by using creative

thinking

covid 19

The impact on performance did not exceed our outlook

Page 23: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

FY2022/3 Activities – The final year of the medium-term business plan

23

1 Improve human resource capabilities

2 Build a stronger base for core businesses

Cultural property fire protection projects (example)

3 Improve business conceptualization and execution capabilities/improve operational precision and speed

4 Continue strengthening corporate governance

Page 24: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 24

Digital transformation of the fire protection industry

Shortage of jobsite workers Workers hold computers instead of tools

Improving digital skills and work process reform skills is essential

Business process innovation skill

Digital technology utilization skill

The ability to create ideas that reflect customers’ true needs, to use digital technologies to create ideas for improvements and to design outstanding services

The ability to identify problems involving business processes in one’s own department and use digital technologies for improvements

The goals for employee skill development

Use of machines/robots

Improve Human Resource Capabilities (1)

Page 25: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Improve Human Resource Capabilities (2)

25

Upgrade digital technology utilization skill

- Revise wages for older employees

- Start using digital tools⇒ Expand and strengthen data network connections, preparations for online lectures about the use

and operation of these networks- Provision of content for classes for enhancing a variety of skills- Measures to shift to paperless business processes

Quickly start using tools for performing tasks online and fully utilize these tools

- Studying methods for the visualization and sharing of information about backgrounds, certifications, career goals, performance reviews, training programs completed and other items concerning employees

Proper and productive use of human resources

Measures for the labor shortage (increase the use of seniors)

Page 26: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Build a Stronger Base for Core Businesses

26

Build a stronger core business base and start new businesses

Large size of the Nohmi Group’s direct/indirect markets More growth expected for the strategic businesses of Japan

¥803tnPower generation, energy, etc.

¥426tn

¥338tn

¥334tn

Source: Nohmi Bosai using “The Potential of SDGs Businesses and Formation of Rules” of Deloitte Tohmatsu Consulting, December 2017 (https://webdesk.jsa.or.jp/pdf/dev/md_3079.pdf)

SDGsMany issues involving the critical social need for disaster preparedness

Monitoring activities of national government study groups and other activities *Including activities other than at the Fire and Disaster Management Agency

Source: Nohmi Bosai using “Visionary Conference for the First Moon Shot R&D Program” March 29, 2019 of the Prime Minister of Japan and His Cabinet

Infrastructure/Maintenance

Energy conservation/Recycling

Disaster preparedness technologies

New busi-ness

New busi-ness

New busi-ness New

busi-ness

Core businesses

Growth

Stronger

*Market size estimates are as of 2017

New businesses will target peripheral fields for meeting customer needs that may occur from current businesses.

Affordable and clean energy

Industry innovation and infrastructure

Sustainable cities and communities

Climate action

Disaster forecasting, etc.

Fire protection infrastructures, degradation surveillance, etc.

Disaster risk management, etc.

Cultural properties

Logistics

Data centers

Factory fire also;

These and other sectors, responding to changes in market conditions

Page 27: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 27

Increased more than expected including big order

Aim the steady increase of orders capturing broader needsFocusing on;

Orders in FY2021/3

Build a Stronger Base for Core Businesses (cultural property fire protection )

Agency for Cultural Affairs Revised and announced fire protection guidelines for national treasures and important cultural properties

Increase in needs based on the five-year fire protection planUpcoming growth of the cultural property fire protection market

(FY2021/3 to FY2025/3)

Priorities • World Heritage Sites and national treasures (buildings)• Museums and other locations that have national treasures and important cultural

properties (art objects), following checks for deterioration and other problems

Japanese government actions for cultural property fire protection(following the Notre Dame fire in Paris and Shuri Castle fire in Okinawa)

Minister of MEXT Established a five-year fire protection plan for World Heritage Sites, national treasures and other properties

(1) Continue to upgrade proposals(2) Measures to handle a larger number of projects (recruit construction workers, further

upgrade training for personnel, etc.)

Upcoming actions

Page 28: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

[Core businesses] ⇒ MaturationProvide fire protection equipment that responds to the Fire Service ActMaintenance services

Improve business conceptualization and execution capabilities/improve operational precision and speed (1)

28

Nee

ds fo

r str

engt

heni

ng fi

re

prot

ectio

n eq

uipm

ent

Needs for strengthening fire protection and disaster prevention management operations

Strengthen proposalcapabilities in fields

outside fire regulations

Provide products and servicesthat support existing fields

Expand business fields ← Identification of necessary tasks

ExamplesTASKis®Joint activities with other companies

Compile a list of all of the company’s business processes

⇒Visualization of jobs and survey to determine tasks to eliminate

Create time to create proposals

Page 29: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Illustration of how TASKis® responds to a building fire

29

Main functions of the cloud disaster response support software

Customers’ needs are shifting from detection to prevention

Adds new value with respect to software (creation of an infrastructure)

• Uses smartphones to distribute instructions on tasks to perform in the event of a fire, earthquake or other emergency involving business continuity plans.

• Supervisors can use PCs for real-time monitoring of reports on progress with these tasks.

Reinforce proposal skills by supplying new forms of value

Disaster response center

Oversight of activities at the building

Fire notification signal

Building①

Evacuation assistance

Firefighting activities

②Distribution of information (location

of fire, tasks, etc.)

Reports on building and task status③

Safety management supervisor

cloud server

Signal conversion unit Fire alarm receiver

①Oversees status of the

building and tasksLocation of fire, evacuation

status, fire extinguishing activities and other information

Improve business conceptualization and execution capabilities/improve operational precision and speed (2)

Page 30: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 30

~TASKis®~

Use sales experience and accomplishments to aim for capturing more orders by targeting safety and security needs other than fire protection and increasing the performance of products to meet those needs.

Improve business conceptualization and execution capabilities/improve operational precision and speed (3)

Example of business domain expansion

Increase safety and security/trust levels

Close-call incidents occurdaily at contracted partnersfor maintenance services.

Broaden business scopeUser

comment

Expand businessfields by strengthening sales structure and proposal structure

New TASKis® activities for safety and security

⇒ Strengthen actual Maintenance Services business

Maintenance Services business⇒ Direct contact with customers (users)

TASKis®

(Provide new products and services)

Improve quality

Rai

se

adde

dva

lue

Prov

ide

adde

d va

lue

Support for strengthening structures

Support for strengthening fire protectionand disaster prevention equipment

Consultation: risk diagnosis

Establishment of a project teamConduct activities including;• Using TASKis to capture maintenance, inspection and other orders

• Reflecting customers’ needs in speedy development activities

Page 31: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 31

Strengthen overseas operations

Provide high value-added service that includes after service

Sales network strategyAgency strategiesReview of product lineup

S.E. Asia and Taiwan

Strengthen back office functionsStrengthen manufacturing back-up functionsRecruit global human resourcesAssess M&A and business cooperation opportunities with other firms

JapanExpand sales targetsReview manufacturing strategy

Reconstruct business strategy

China

India

Improve business conceptualization and execution capabilities/improve operational precision and speed (4)

No change in strategies despite the effects of the COVID-19 pandemic

Page 32: FY2021/3 Results of Operations

NOHMI BOSAI LTD. 32

Strengthen corporate governance

Started using the executive officer system

Increased independent outside directors to one-third of all directors

Election of a female director

Revised standards for items submitted to the Board of Directors

Voluntarily established a Nomination and Compensation Committee

June 2020

Proposal at the June

2021 shareholders

meeting

Establishment of a restricted stock remuneration system

Continue strengthening group management

Continue Strengthening Corporate Governance

Page 33: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Measures for Implementing Medium-term Management Plan

33

Employee engagement survey for the medium-term management plan

Input is incorporated in measures to increase motivation and organizational performance

Examination of survey results(also shared this information with employees)

Incorporated issues identified by the engagement survey in the medium-term plan and action plan in order to raise the accuracy of these plans

Revised/corrected activities beginning in FY2021/3 2H based on the issues revealed by the engagement survey

Improve activities based on the revised plans

Check

Do

Plan

Action

Engagement survey for implementing the medium-term management plan- The survey was in July 2020 (the previous survey was in May-June 2019)- eNPS (employee Net Promoter Score) was used to analyze survey results

* eNPS is a metric used to measure the engagement of employees.

eNPS(%) % of positive responses = % of negative responses-

Page 34: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Quantitative Targets

34

Con

solid

ated

Net

Sal

es

(Billion yen)

Consolidated net sales/Operating profit margin

Collaborate with related in-house and external bodies and introduce elemental and other technologies (data technology, AI, IoT, …)

Promote in-house development of Nohmi Bosai’s core technologies

Toward the development of next-generation new products

2013/3 2019/3 2020/3 2022/3 2025/3 2029/3

86.0106.7 117.2 125.0

¥170 billion orhigher

Percentage of consolidated

net sales

¥2.2bn ¥2.6bn ¥5.0bn

2.1% 2.2% 3.0%

Experimental research

expenses

R&D investment

Stage Ⅰ Stage Ⅱ Stage Ⅲ

Target Achieved! Op margin11.2%

120.8Maintain operating profit margin of 10% or higher

Revised the plan based on the market climate change

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Ⅳ. Reference

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NOHMI BOSAI LTD.

Company Profile

Trade Name

Establishment

Head Office

President

Employees

Business

NOHMI BOSAI LTD.

7-3 Kudan-Minami, 4-Chome, Chiyoda-ku, Tokyo Japan

May 5, 1944 (Foundation: December,1916)

Tatsunori Ito, Representative Director and President

2,606 (consolidated)

Contract test, planning, proposal regarding disaster prevention.Research, development, planning, installation and maintenance of disaster prevention facilities and systems.Design, manufacturing and marketing of disaster prevention equipment.Design, manufacturing, installation, marketing and maintenance of parking lot system.

Capital 13,302 million yenAs of March 31, 2021

~ Comprehensive fire safety company~

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NOHMI BOSAI LTD.

History

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R-26C

Establishment

Listing of stock

100th anniversary

Nohmi Technorium Menuma

Oku-Goten in imperial palace completion ceremony

Teruichi Nohmi

PROTECVIEW

R&D center Misato

Manual fire alarm box with ring-shaped location lamp

Menuma factory

◎ 2019 TASKis® cloud disaster response support software was launched◎ 2018 R-26C fire alarm system for midsize/large buildings was launched◎ 2017 Menuma factory was expanded and “Nohmi Technorium Menuma” an

exhibition facility was established.◎ 2016 Automatic fire extinguisher system “SPlash α” was launched.◎ 2014 Manual fire alarm box with ring-shaped location lamp won GOOD DESIGN

Gold prize◎ 2013 Image processing smoke detection system was launched.◎ 2010 Established R&D center in Misato, Saitama◎ 2009 Aspirating super-high sensitivity smoke detection system PROTECVIEW

was launched.◎ 2006 Third-party allocation of shares to SECOM Co., Ltd.◎ 2004 Mamoru-kun 10 the fire alarm equipment for houses was launched.◎ 2002 Conventional fire alarm system with automatic testing function “Advanced P”

was launched.◎ 1995 Nohmi Secom Fire Protection (Beijing) Co., Ltd. established in China.◎ 1991 Listed on Tokyo stock exchange 1st section◎ 1987 Installed fire protection systems in the Seikan Tunnel and the Seto bridge.◎ 1974 Developed fire protection systems for LNG terminal◎ 1968 Installed the first ionization type fire detection system in the Kasumigaseki

Building, which was the first highrise building in Japan.◎ 1962 Installed the first fire protection systems in the Kajiwara-Tennosan tunnel of

the Meishin Expressway in Japan. Listed on Tokyo stock exchange 2nd

section◎ 1936 Installed the first fire alarm systems at the imperial palace◎ 1933 Installed the first fire alarm systems at Sanjyusangendo Temple, first in

Japan for a national treasure.◎ 1924 "Nohmi Shokai" started a fire protection business to manufacture and sell

automatic fire alarm systems after the Great Kanto Earthquake◎ 1916 Teruichi Nohmi established "Nohmi Shokai”

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NOHMI BOSAI LTD.

Business Domain

FY2021/3Consolidated

Net Sales107.8bn

35.6%

4.5%24.7%

35.2%

Manufacture and sale of automatic fire alarm equipment, environmental monitoring systems, fire prevention and smoke removal systems, and other products and the installation of these systems

Fire Extinguishing Systems

Others

Fire Alarm Systems

Maintenance Services

Manufacture and sale of sprinkler systems, foam fire extinguishing systems, fire prevention systems for industrial plants and tunnels, and other products and the installation of these systems

Maintenance/inspection services and repair/renewal services for fire protection equipment

Installation and maintenance of parking lot management systems and other activities

Major products• Sprinkler• Plant disaster prevention system• Tunnel disaster prevention system

Major products• Fire alarm system • Fire prevention/

smoke control facility• Gas leakage

detector• Emergency

broadcasting system• Evacuation

guidance facility• Disaster protection

system for houses • Environmental

monitoring systems

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NOHMI BOSAI LTD.

Strengths of the Nohmi Bosai Group (1)

Comprehensive fire safety expertise

R&D ⇒ Manufacturing ⇒ Sales/Design ⇒Installation ⇒MaintenanceA fully integrated infrastructure for providing products and services

Manufacturing Sales/Design Installation MaintenanceR&D

Fully integrated

A diverse lineup of equipment allows Nohmi to meet the fire protection requirements of almost any type of building or other facility

Building/Metro

Tunnel

Data infrastructure center

House

Trash incinerator

Small social welfare center

Factory

Apartment

TempleAirport

Hazardous material storage/handling site

Heliport

Largebuilding Vessel

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Page 40: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Strengths of the Nohmi Bosai Group (2)

Five key strengths backed by many years of accomplishments

1) Technology – Development, design, installation and other skills covering all aspects of fire protection

2) Knowledge – Fire safety expertise acquired from an enormous volume of research and testing

3) Installation quality – Rigorous process management and other skills ensure outstanding quality for all installation work

4) Reliability – A reputation for trust among customers and all others due to a record of proven reliability

5) Nationwide network – A powerful network of sales distributors covering all areas of Japan

*Simulations cover almost all potential sources of fires

Rack warehouse fire test

Automotive paint booth fire test

Foam fire extinguishing test

Smoke dispersion test

Clean room smoke test

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Page 41: FY2021/3 Results of Operations

NOHMI BOSAI LTD.

Precautions

Statements in this presentation about future results of operationsare based on information that is currently available to Nohmi Bosaiand its group companies. These forecasts incorporate risk factorsand uncertainties.

Actual results of operations may differ significantly from theforecasts in this presentation because of a change in theeconomic environment for business activities, a shift in demand orother reasons.

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